Rawalpindi: The Board of Directors of Fauji Fertilizer Company Limited announced an interim cash dividend of Rs. 12.00 per share for the quarter ended June 30, 2025, following a meeting on July 29, 2025. This dividend is in addition to the Rs. 7.0 per share already distributed earlier, marking a total payout of 120% for the quarter.
The company reported operational challenges, including turnarounds at both Got Machhi and Port Qasim plants, which influenced production volumes. Despite these hurdles, Fauji Fertilizer achieved a total Urea production of 1,419 thousand tonnes and DAP production of 393 thousand tonnes. The domestic fertilizer market faced a downturn due to adverse economic conditions, with industry Urea offtake declining by 23% and DAP sales decreasing by 18% compared to the previous year.
According to information available from the Pakistan Stock Exchange (PSX), Fauji Fertilizer managed to capture 43% of the total Urea production in the industry, maintaining only 26% of the inventory by the end of the period, reflecting its extensive market reach with Urea offtake reaching 1,122 thousand tonnes. The company constituted 57% of the total DAP production and imports, closing the period with 40% of the stock and a DAP offtake of 288 thousand tonnes, securing a market share of 64%.
Financially, Fauji Fertilizer recorded a revenue of PKR 155 billion, marking a Big move compared to PKR 116 billion during the same period last year. This growth was driven by the integration of revenues from Sona DAP and Sona Urea Granular marketing, despite higher input costs at the Port Qasim plants compressing the gross margin to 34% from last year’s 42%. The company also faced profitability challenges due to market situation-induced discounts offered to offload inventories. Nevertheless, improved investment income, which saw a significant increase to PKR 28 billion, contributed to a higher net profit of PKR 38.5 billion, a Big move from PKR 26 billion in the previous year, resulting in earnings per share of PKR 27.02.
The company continued offering Urea at PKR 4,400 per bag, providing a PKR 81 billion benefit to farmers relative to the import parity price of PKR 9,000 per bag, underscoring its commitment to supporting the farming community and national food security through its Sona Centers network.
Eligible shareholders, as recorded on August 10, 2025, will receive the recommended entitlement, with the share transfer books closing from August 11 to August 13, 2025. The company's quarterly report will be disseminated through PUCARS within the specified timeframe.