FFBL reported the highest ever 1Q revenue of Rs46.5bn in 1Q2024.

DAP market size increased by 23% YoY to 292K tons in 1Q2024 where FFBL’s market share increased to 58% in 1Q2024 compared to 54% in 1Q2023. DAP primary margins in 1Q2024 stood at US$151/ton compared to US$160/ton in 1Q2023. FFBL ensured US$151/ton of FX savings for Pakistan in 1Q2024 by producing DAP locally, which will translate into an annual savings of US$129mn.

FFBL produced 177K tons of DAP in 1Q2024, compared to 52K tons in 1Q2023, attributable to shutdowns during the same period last year.

Pakistan’s urea market increased by 11% Year over Year to 1,798K tons in 1Q2024. FFBL liquidated its entire inventory, and its market share stood at 4% vs. 5% in the same period last year.

FFBL did not sell any imported Urea in the quarter and its quota was transferred to FFC.

Urea production in 1Q2024 decreased to 70K tons compared to 89K tons in 1Q2023. The reason for the lower production was 3,116 MMSCF gas availability against the allotted amount of 5,168 MMSCF. According to the management, using RLNG for production is not feasible because of the higher rates.

The company has set urea production targets for the full year 2024 in the range between 350K to 400K tons, subject to the availability of gas.

In 1Q2024, the average delta between FFBL Urea bag price and International Urea price stood at Rs1,475/bag, which ensured savings for farmers.

FFBL reported the highest ever 1Q revenue of Rs46.5bn in 1Q2024.

Giving updates on its investments, management communicated that FFBL Power’s (FPCL’s) net profit increased by 38% YoY in 1Q2024. FPCL has improved its efficiency of coal usage, using a mix of low-quality imported coal. The future plan is to add Thar coal to the mix.

Fauji Foods’ net profit increased by 265% over the same period last year. It has posted four consecutive positive quarters, driven by the growth of the NURPUR brand.

FFBL received a dividend of Rs800mn from Askari Banks (AKBL) in 1Q2024, which was based on last year’s earnings.

FFBL launched boron DAP on April 23, 2024. This type of DAP improves crop yields by 10-23%. Boron DAP will be sold at Rs500 higher than the normal DAP price. Boron is currently being procured locally, and future negotiations are ongoing with suppliers from China, South America, etc.

PMP Morocco has the potential to give dividends, but it will be decided by their company management, which would potentially be reflected in 2Q2024.

Courtesy – Topline Pakistan Research 

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