FFBL_CY22 Result Review, (AKD Off the Analyst's Desk Jan 30, 2023)
AKD, Off the Analyst's Desk
FFBL: CY22 Result Review
Fauji Fertilizer Bin Qasim Limited (FFBL) announced CY22 result today, where it posted earnings on the unconsolidated level of PkR2.3bn for the year, culminating into an EPS of PkR1.8. For the final quarter of the year, a NPAT of PkR614mn (EPS: PkR0.5) was posted, lower than the industry expectations. On the consolidated basis, earnings for the year amounted to PkR7.6bn, taking total earnings per share to PkR5.9 in CY22.
- Net sales for the company have clocked in at PkR65.7bn for the final quarter of the year, up by 56%YoY and 191%QoQ, boosted by the surge in DAP offtakes in the quarter along with higher prices. This takes total unconsolidated revenue for CY22 to PkR159.2bn, up by 44%YoY despite the lower DAP offtakes owing to the surge in prices of DAP in the year.
- FFBL has posted margins of 16% in CY22, considerably lower compared to the 20% of CY21 as the higher power costs along with the pricier inventory of phosphoric acid made a dent on the company’s costs. Owing to this, margins in 4QCY22 clocked in at merely 12% vs. 17% in the third quarter of the year.
- Owing to heightened ST borrowings, financial charges for the company have clocked in at a whopping PkR2.6bn. Amid the high interest rate environment, the company is bearing the brunt of the higher borrowings. Other Income for the company have increased by 5%QoQ to clock in at PkR1.0bn as ST investments boost earnings.
- Earnings for the year have decreased by 64%YoY, further dented by the imposition of Supertax in the year, with the ETR clocking in at 73%. Furthermore, the company has not announced a dividend for the fourth year in a row.
AKD Research
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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