FFC_CY22 Result Review, (AKD Off the Analyst's Desk Jan 30, 2023)
AKD, Off the Analyst's Desk
FFC: CY22 Result Review
Fauji Fertilizer Company (FFC) announced CY22 result today, where it posted unconsolidated earnings of PkR20.0bn for the year, culminating into an EPS of PkR15.8. The company posted a NPAT of PkR5.2bn (EPS: PkR4.0) for the final quarter of the year, lower than the industry expectations. On the consolidated basis, earnings for the year amounted to PkR33.7bn (EPS: PkR27.0) in CY22.
- Net sales for the company have clocked in at PkR30.2bn for the final quarter of the year, down by 14%YoY on the back of considerably lower DAP offtakes, while increasing by 23%QoQ as the offtakes recovered from the devastation caused by the floods which hit the country in 3QCY22.
- FFC has posted margins of 37% in CY22, remaining relatively flat compared to the 36% recorded in CY21. On the other hand, margins in 4QCY22 fell to 32% vs. 33% posted in the SPLY, while declining considerably from the 39% recorded last quarter.
- Financial costs for the company have risen by 36%QoQ to clock in at PkR1.6bn for the quarter, while more than doubling for CY22 as the PkR4.9bn recorded in the year is an increase of 112%YoY. Amid the high interest rate environment, the company will continue to face heightened charges unless ST debt is retired.
- The company recorded bumper Other Income of PkR4.2bn in the quarter, as ST investments paid off along with possible dividend income from its investments in associates and subsidiaries.
- The company has announced a dividend payout of PkR3.15/sh, taking cumulative payout in CY22 to PkR12.13/sh, ending up with a D/Y of ~12%.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.