• Fertilizer sector earnings surged 44% YoY to PKR 119.9bn in CY24 compared to PKR 83.3bn in SPLY.
• Revenue depicted growth of 21% YoY to PKR 984.0bn, driven by a 39% rise in UREA and 9% increase in DAP prices.
• Urea offtake witnessed a meagre dip of 1% YoY, reaching 6,577k tons.
• DAP offtake climbed by 3% YoY, clocking in at 1,627k tons.
• Gross margins increased to 32% in CY24 from 30% in SPLY, owing to higher urea prices and lower phosphoric acid prices.
• Distribution expenses soared 41% YoY due to higher axle load costs.
• Finance costs declined 16% YoY, benefiting from lower interest rates.
• Other income is augmented by 58% YoY owing to i) higher income from cash and cash balances and ii) dividend income from FFC’s subsidiaries, associates, and joint ventures.
• The effective tax rate remained unchanged at 50% in CY24.
• Furthermore, FFC and FFBL completed the amalgamation process towards the end of CY24 to form a single entity during CY24. This horizontal merger will eliminate double taxation and generate operational, financial, and expansionary synergies.

Courtesy – AHL Research