Fauji Fertilizer Company Ltd. (FFC) held its corporate briefing session today to discuss 9MCY25 financial results and future outlook. According to AKD Research, takeaways from the call are as follows:

·        Company reported standalone earnings of PkR57.6bn (PkR40.5/sh) in 9MCY25, compared to PkR50.6bn (PkR35.5/sh) in SPLY, primarily driven by higher sales and a 21%YoY increase in other income.

·        Industry-wide nutrient offtake remained subdued during 9MCY25, with urea sales declining by 8%YoY, mainly due to lower sales in 1H impacted by reduced rainfall and weak farm economics.

·        Offtakes, however, improved during 3Q due to recovery in farmers liquidity and a positive outlook for upcoming wheat season. Consequently, industry’s urea inventory level eased to 1,162k ton by 3Q-end from 1,310k tons at end-Jun’25.

·        Company’s urea sales declined by 12%YoY to 1,955k tons (including FFBL sales), resulting in market share normalizing to 47% from 51% in SPLY. The company holds 25% of total industry inventory, equivalent to 294k tons.

https://research.akdsl.com/638973448112028002.pdf

AKD Research