COMPANY INFORMATION
DIRECTORS
Mr Waqar Ahmed Malik
Chairman
Mr Arif-ur-Rehman
Chief Executive Officer
Mr Sarfaraz Ahmed Rehman Dr Nadeem Inayat
Mr Qamar Haris Manzoor Mr Mohammad Munir Malik Syed Bakhtiyar Kazmi
Mr Mohammad Aleem Khan Syed Khalid Siraj Subhani Mr Moeez ur Rehman Ms Pouruchisty Sidhwa
Ms Saira Nasir
BANKERS
Habib Bank Limited MCB Bank Limited United Bank Limited National Bank of Pakistan Allied Bank Limited Askari Bank Limited Faysal Bank LimitedSamba Bank Limited
Zarai Taraqiati Bank Limited
Industrial & Commercial Bank of China The Bank of Khyber
Standard Chartered Bank (Pakistan) Limited Habib Metropolitan Bank Limited
The First Micro Finance Bank Limited Soneri Bank Limited
Summit Bank Limited JS Bank Limited
COMPANY SECRETARY Brig Asif Ali, SI(M), (Retd)
CHIEF FINANCIAL OFFICER Mr Muhammad Javed Akhtar
REGISTERED OFFICE
FFBL Tower, C1 / C2, Sector B, Jinnah Boulevard, Phase II, DHA Islamabad.
Tel: +92 51 8763325, Fax: +92 51 8763304-05 E-mail:secretary@ffbl.com
PLANTSITE
Plot No. EZ/I/P-1 Eastern Zone, Port Qasim, Karachi 75020. Tel: +92 21 34724500-29, Fax : +92 21 34750704
Email:information@ffbl.com
WEB PRESENCEwww.ffbl.com
Al-Baraka Bank (Pakistan) Limited Dubai Islamic Bank Pakistan Limited Bank Islami Pakistan Limited Meezan Bank Limited
MCB Islamic Bank Limited Bank Al-Falah Limited Bank Al-Habib Limited Silk Bank Limited
The Bank of Punjab
LEGAL ADVISORS
Orr Dignam & Co, Advocates, Marina Heights, 2nd floor, 109 East, Jinnah Avenue, Blue Area, Islamabad, Pakistan Tel: (051) 2348645-9
AUDITORS | SHARES REGISTRAR |
EY Ford Rhodes, | M/s Corplink (Pvt) Limited, |
Eagle Plaza, 75 West, | Wings Arcade, 1-K, |
Fazal-e-Haq Road, | Commercial, Model Town, Lahore. |
Blue Area, Islamabad . | Tel: (042) 35839182, 35916719 |
Fax: (042) 35869037 |
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DIRECTORS' REVIEW
FOR THE PERIOD ENDED MARCH 31, 2022
We entered year 2022 strengthened, more focused and more able. We kept our focus on disciplined resource allocation and achieving operational excellence to deliver better results for our stakeholders.
During the quarter, Pakistan Stock Exchange (PSX) announced the''Top 25 Companies of Pakistan''for the year 2020 and FFBL successfully made itself to the list with a distinction by securing 6th place.
The plant operations successfully achieved 22.85 million safe-man-hours with highest ever first quarter DAP and Ammonia production, registering 83% increase in DAP to 222 KT (March 2021: 121 KT), 50% increase in Urea to 121 KT (March 2021: 80 KT) and 65% increase in Ammonia to 120 KT (March 2021: 73 KT). Improved plant performance is achieved by significantly reducing downtime, increasing efficiency and promoting teamwork. In view of ongoing shortage of Urea in Pakistan, the Company deferred its annual turnaround and kept the plant operational throughout the quarter while giving due consideration to all associated risks. In recognition of our efforts towards community welfare activities, the Company has been awarded with the "Community Impact Award 2022" during the "11th Annual Corporate Social Responsibility Summit & Awards 2022, organized by The Professional Network.
At the end of current quarter, domestic DAP market is estimated to have declined by 24%, from 314 KT to 238 KT primarily due to high pricing.
International developments including Russia - Ukraine conflict, shortage of gas supplies, rising freight costs has led to increase in fertilizer prices world over. Additionally, DAP price in Pakistan is also adversely impacted due to continuous devaluation of Pak Rupee against US Dollar as Pakistan meets more than 50% of its DAP consumption through imports. Likewise, local DAP production costs are also directly dependent on imported raw materials. The Company continued to lead local DAP market by further increasing its share to 48% (March 2021: 37%, Dec 2021: 42%). On the other hand, domestic Urea market is estimated to have increased by 17% from 1,398 KT to 1,628 KT due to a surge in demand as a result of higher phosphatic fertilizer prices. The Company was successful in achieving 7% Urea market share (March 2021: 5%, Dec 2021: 8%).
Since inception the Company achieved the highest ever first quarter Sales of PKR 24.7B representing an increase of 91% from PKR 13B in the comparative quarter and increase in gross profit margin from 19% to 22%. This helped the Company to register highest ever first quarter profit after tax of PKR 1.6B representing 28% growth to comparative quarter. Profit from operations stood at PKR 3.4B in comparison to PKR 1.3B profit in the same quarter last year. Other expenses increased by PKR 0.8B mainly due to increase in foreign exchange loss amid continuing surge of US dollar against Pak Rupee and provision for WPPF and WWF. Dividend income from associates decreased by PKR 1B. In the meanwhile, receivables from the Government of Pakistan surged to PKR 17B including PKR 14B on account of sales tax refunds.
Our subsidiaries delivered healthy performance during the quarter. While FPCL's profitability declined during the quarter due to lower external sale volumes, going forward it is expected to deliver steady profits in line with last year. FFL achieved sales growth, however, inflationary impacts resulted in increased input and overhead costs resulting in loss after tax of PKR 0.5B (March 2021: PKR 0.35 B). FFL's products especially Nurpur Milk (UHT milk) and Nurpur Cheese, are picking up market share and are expected to perform well as the Company is now the sole supplier of cheese to an international fast food chain in Pakistan.
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Looking ahead while considering international developments and government's priorities in gas allocation may lead to shortage of fertilizer in local market as well as hike in price. Therefore, a promising outlook shall depend on continuing support by the Government to agricultural producers, fertilizer industry and favorable growing conditions enabling the farmer community to fully exploit the available resources.
We appreciate and acknowledge the efforts of our people, trust placed in us by our shareholders and engagement of our business partners and regulators which helped us to operate and responsibly feed our community.
Together, we shall continue increasing the production potential of our lands and building a better tomorrow.
For and on behalf of the Board
Waqar Ahmed Malik
Arif-ur-Rehman
Chairman
Chief Executive Officer
Place: Islamabad Date: 22 April, 2022
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Fauji Fertilizer Bin Qasim Ltd. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 05:13:09 UTC.