FLASHNEWS:

Fatima Fertilizer’s Fourth Quarter Earnings Decline Amid Lower Other Income

Karachi: Fatima Fertilizer Company Ltd. (FATIMA) has reported a decline in its consolidated earnings for the fourth quarter of the calendar year 2025, with profits falling to PkR13.1 billion, representing a year-over-year decrease of 3%. This decline was attributed primarily to lower-than-expected gross margins and a significant drop in other income. The company declared a final dividend of PkR2.5 per share, bringing the total dividend for the year to PkR6.0 per share.

According to AKD Securities Limited, the company experienced a 13% increase in revenue, rising to PkR97.4 billion compared to PkR85.9 billion in the same period last year. This growth was driven by a substantial increase in urea and CAN sales, which grew by 30% and 86% year-over-year, respectively. However, this was offset by declines in NP and DAP offtakes, which fell by 17% and 52%, respectively. Gross margins saw a slight decrease to 31.1% from 31.5% in the same period last year, likely due to reduced offtakes from the base plant that benefits from cheaper gas. Furthermore, other income decreased by 42% year-over-year to PkR3.5 billion, a result of lower investment yields.