Fatima Fertilizer post PKR18.4 Billion profit in 2021

April 7, 2022

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Fatima Fertilizer continues its Strong Profit growth in 2021 as it posted Net Profit of PKR 18.474 billion compared to PKR 13.274 billion in 2020. The earning per share stood at PKR 8.8, marking a 39 percent yearly increase. Company also announced Dividend of PKR3.5/Share.

FATIMA Fertilizer posted sales growth of PKR 112.48 billion compared to PKR 71.267 billion in 2020, marking a 58 percent yearly rise, partially due to Increased prices and partially due to higher volumes.

Gross margins slightly declined to 38.3 percent compared to 40 percent in 2020.

Operating profit remained at robust level of PKR34.135 billion in 2021. Finance cost declined by 42 percent to PKR 2.006 billion primarily due to net retirement of borrowing.

	2021	2020
Sales	112,488,420	71,267,316
Cost of sales	(69,403,976)	(42,472,530)
Gross profit	43,084,444	28,794,786
Distribution cost	(5,048,813)	(3,890,808)
Administrative expenses	(3,899,774)	(3,368,500)
Operating Profit	34,135,857	21,535,478
Finance cost	(2,006,559)	(3,469,303)
Other operating expenses	(4,676,977)	(1,677,558)
	27,452,321	16,388,617
Other income	1,210,189	1,810,074
Other gains / (losses):
– Gain on renneasurennent of GIDC	–	877,513
– Unwinding of provision for GIDC	(367,524)	–
– Loss allowance on subsidy receivable from GoP	(109,721)	(360,244)
Share of (loss) / profit from associates	(348)	26,795
Profit before tax	28,184,917	18,742,755
Taxation	(9,710,827)	(5,468,064)
Profit for the year	18,474,090	13,274,691
Earnings per share – basic and diluted (Rupees)	8.80	6.32

Fatima Group holds 45% of the company through associated companies (23%) and individuals (22%), while Arif Habib Group holds 34% through associated companies (16%) and individuals (18%). Fazal Group holds 11% through associated company (3%) and individuals (8%). The remaining shareholding lies with Financial Institutions (4%) and General Public (6%).

Company’s external credit rating was recently upgraded to “AA” (Long Term). After the acquisition of Pakarab Fertilizer’s plants, Fatima Fertilizer now runs Pakistan’s largest Fertilizer complex.