Fauji Fertilizer Bin Qasim (FFBL) is unlikely to announce a cash dividend with the 4Q2023 result. We anticipate FFBL to report an unconsolidated EPS of Rs3.8 in 4Q2023, a significant increase from the EPS of Rs0.5 in 4Q2022. This improvement is primarily attributed to (1) a 10% rise in gross margins to 22% in 4Q2023,(2) a 45% YoY decline in finance cost, and (3) an absence of exchange losses due to the stability of the PKR against the US dollar.

We expect earnings to decline by 8% on a QoQ basis, primarily due to a 34% QoQ decrease in DAP sales and lower other income amid the absence of dividend income in 4Q2023.

We do not anticipate FFBL announcing a cash dividend with the 4Q2023 result.

Courtesy- Topline Pakistan Research