Lahore: Agritech Limited has released its unaudited condensed interim financial statements for the first quarter of 2025, revealing significant downturns in both urea and phosphate fertilizer markets. The report, issued by the Directors, highlights a 9% decrease in Urea production nationwide, totaling 1,568 k tons compared to 1,725 k tons in the same period last year. Urea offtakes plummeted by 40% to 1,100 k tons due to reduced wheat sowing areas and unfavorable farm economics.

Agritech reported producing 67 k tons of Urea against its installed capacity of 108 k tons, citing a planned Annual Turn Around as the primary reason for the plant's closure in January. The company sold 89 k tons of Urea during this period, a slight decline from 98 k tons in the first quarter of 2024.

Phosphate offtakes also decreased by 44%, with only 100 k tons of P2O5 Nutrients sold compared to 177 k tons the previous year. Production and imports of phosphatic fertilizers declined by 7% and 62%, respectively, due to weak farm economics affecting Rabi crops. DAP prices in the international market remained relatively stable, fluctuating between US$ 640-655 per ton CFR KHI.

Financially, Agritech reported net sales of Rs. 7,544 million, down from Rs. 9,241 million in the same quarter last year. Operating profit fell to Rs. 724 million from Rs. 1,603 million, while finance costs decreased to Rs. 1,024 million from Rs. 1,751 million. The company reported a loss before tax of Rs. 300 million and a loss after tax of Rs. 238 million, translating to a loss per share of Rs. 0.56.

According to information available from the Pakistan Stock Exchange (PSX), Agritech Limited has been added to the KSE-100 Index following a re-composition exercise effective from the first working day of April 2025. The company is also in the process of converting 148.43 million preference shares into ordinary shares, as notified by entities such as Fauji Fertilizer Limited and Maple Leaf Cement Factory Limited.

Pakistan's fertilizer sector faces challenges such as high inventory levels and agricultural issues including water shortages and rising input costs. However, there is cautious optimism for improved offtake prospects in the Kharif season, especially with anticipated increases in rice and maize acreages.

The Directors expressed gratitude to customers, financial partners, and employees, emphasizing their roles in the company's resilience amid challenging market conditions.