Karachi: Fauji Fertilizer Company Ltd. (FFC), a leading player in the fertilizer industry, has reported a 23% year-on-year decline in its standalone earnings for the third quarter of the calendar year 2025. The company announced earnings of PkR19.2 billion, translating to earnings per share (EPS) of PkR13.48. This is a decrease from the PkR24.8 billion (EPS: PkR17.44) recorded in the same period last year. The earnings fell slightly below analysts' expectations, primarily due to lower-than-anticipated margins.

Despite the drop in earnings, FFC's revenue saw a significant boost, increasing by 18% year-on-year to PkR127.3 billion, up from PkR108.0 billion in the same period last year. This rise in revenue was largely driven by a 14% and 11% increase in the offtakes of urea and Di-Ammonium Phosphate (DAP), reaching 834,000 and 253,000 tons, respectively.

The company's gross margins, however, contracted to 30.8% from 37.3% in the same period last year. This decline was attributed to discount offerings on urea and lower margins on DAP during the quarter. Analysts noted that margins were below expectations due to higher-than-anticipated prices of phosphoric acid.

In line with the results, FFC announced a cash dividend of PkR9.5 per share. The company's distribution expenses also saw an increase, rising by 5% year-on-year to PkR8.6 billion. This was mainly due to higher offtakes during the quarter.

The financial results and accompanying analysis were provided by AKD Securities Limited.