Fauji Fertilizer Company Limited (PSX: FFC) just announced its financial results for the first half of the year. The company reported a solid 12% increase in its consolidated net profit. Specifically, the profit reached Rs. 42.42 billion. Last year, the company posted Rs. 37.95 billion during the same period. Furthermore, FFC declared a cash dividend of Rs. 14.50 per share. Consequently, basic and diluted earnings per share (EPS) improved significantly. The EPS climbed to Rs. 29.05 from Rs. 26.06.
Production Trends & Market Dominance
The company achieved this impressive performance despite an uncertain business environment. Regional geopolitical pressures heavily impacted energy markets and commodity prices. Nevertheless, FFC focused intensely on marketing and distribution efforts. They also ensured uninterrupted product availability. As a result, urea sales grew in the second quarter compared to the first quarter.
Looking at production trends, the Goth Machhi and Mirpur Mathelo plants produced 1,262 thousand tonnes of Prilled Urea. This output represents a 3% year-on-year increase. However, Granular Urea production at Port Qasim dropped to 155 thousand tonnes. Similarly, Sona DAP production fell by 6% to 369 thousand tonnes. Gas curtailment and regional phosphoric acid supply constraints caused this decline.
Meanwhile, total Urea offtake surged by 25% to 1,404 thousand tonnes. This surge drove FFC’s Urea market share up sharply to 56%. Additionally, DAP sales expanded to 318 thousand tonnes. Consequently, FFC increased its DAP market share to 66%. Overall product revenue swelled to Rs. 200 billion from Rs. 155 billion in 2025. Higher sales volumes primarily drove this revenue growth.
FFC Financial Performance & Cost Breakdown
On a consolidated level, FFC posted a net turnover of Rs. 230.13 billion. This figure reflects a 26% year-on-year increase. Direct costs grew by 29% to Rs. 154.53 billion. Still, the strong volume expansion drove a 20% growth in gross profit. Gross profit reached Rs. 75.60 billion.
To support business expansion, administrative and distribution expenses rose by 18% to Rs. 20.96 billion. Additionally, finance costs grew by 18% to Rs. 4.50 billion. Other income slightly decreased to Rs. 9.66 billion. Furthermore, the share of profit from associates and joint ventures declined 16% to Rs. 11.16 billion.
Despite these non-operating pressures, strong core gross profit gains pushed profit before tax up 10% to Rs. 65.85 billion. Finally, the company absorbed Rs. 23.43 billion in taxation provision. Ultimately, FFC closed the half-year with a consolidated net profit of Rs. 42.42 billion. This figure reflects improved core profitability and sustained performance across subsidiaries.
Statement of Profit or Loss (1HCY26)
| Description | 2026 (Rs. 000) | 2025 (Rs. 000) | Change % |
|---|---|---|---|
| Turnover – net | 230,125,752 | 182,292,183 | 26.2% |
| Cost of sales | (154,528,914) | (119,492,217) | 29.3% |
| GROSS PROFIT | 75,596,838 | 62,799,966 | 20.4% |
| Administrative and distribution expenses | (20,961,290) | (17,752,085) | 18.1% |
| (Operating profit before finance & non-core) | 54,635,548 | 45,047,881 | |
| Finance cost | (4,502,899) | (3,823,944) | 17.8% |
| Other expenses | (5,039,239) | (4,631,670) | 8.8% |
| Other income | 9,661,622 | 9,974,819 | -3.1% |
| Share of profit of associates and joint venture | 11,162,244 | 13,225,048 | -15.6% |
| PROFIT BEFORE INCOME TAX & FINAL TAX | 65,917,276 | 59,792,134 | 10.2% |
| Final taxes – levies | (68,859) | (21,980) | |
| PROFIT BEFORE INCOME TAX | 65,848,417 | 59,770,154 | 10.2% |
| Provision for taxation | (23,431,654) | (21,816,833) | 7.4% |
| PROFIT FOR THE PERIOD | 42,416,763 | 37,953,321 | 11.8% |
| Earnings per share – basic & diluted | 29.05 | 26.06 | 11.5% |
