Fauji Fertilizer Co. Ltd. · PSX:FFC
Fauji Fertilizer — FY2023 Earnings Presentation
14 slides from Fauji Fertilizer's earnings presentation, Jan 30, 2024
Slide 1: Cover letter to Pakistan Stock Exchange
Za FAUJI FERTILIZER COMPANY LIMITE Zee ° (HEAD OFFICE) Secretariat (Corporate Affairs) Ref No. 6.12-KSE/S/FFC ef No. 6.12- January 29, 2024 To: Ms. Raeda Latif GM - Mktg & BD Pakistan Stock Exchange (Guarantee) Limited Stock Exchange Building Stock Exchange Road KARACHI Fax: 021-111-573-329 Subject:
Slide 2: Corporate Briefing for the year ended December 31, 2023
Corporate Briefing For the year ended December 31, 2023 Presented by: CFO January 30, 2024
Slide 3: Agenda
01 02 03 04 05 Review of Fertilizer Highlights & Other Financial Industry Questions Challenges Businesses Performance Snapshot
Slide 4: Business Highlights
Business Highlights Contribution Lower Price FFC sold urea at to National Turnover lower rates Exchequer (around PKR 200- PKR 36.3 Bn PKR 159.5 bn 500 per bag) (Vs PKR 30 Bn LY) Other Income PKR 17.1 bn FX Savings Significant cost optimization Profit after tax USD 1 billion measures, PKR 29.7bn Impo
Slide 5: Key Challenges
Key Challenges High Inflation, interest rates, currency devaluation resulting in increased operating and financial cost Significant 75% increase in gas prices – only partial impact was passed on Increased Freight cost – implementation of Axle Weight Regulations Reserve buildups - required for dollar
Slide 6: Financial Performance
Financial Performance Profitability (Rs B) 2023 2022 Thousand Tonnes UREA: Production 2,521 2,404 Sales 2,505 2,423 64.3 51.6 DAP: Sales 105 70 40.0 29.9 29.7 Rs in Billion 20.1 Revenue 159.47 109.36 Gross Operating Net Profit Profit Profit Cost of Sales 95.22 69.32 2022 2023 GP 64.25 40.05 35.0 160
Slide 7: Production & Offtake
Production & Offtake 000’ MT Sona Urea Production Fertilizer Sales & Aggregate Revenue Highest ever 2023 2,521 Turnover 2022 2,404 3500 Sales (KT) 180 159 160 2021 2,507 3000 503 140 253 253 226 124 2500 2020 2,487 72 Turnover (PKR Bn) 120 2000 106 106 109 109 100 2019 2,492 98 1500 80 2,527 2,512 2
Slide 8: Local Urea Market
Local Urea Market 2023 2022 6,642 6,615 6,440 6,329 249 499 95 284 71 48 O/Inv Production Imports Sales C/Inv 6 years Industry Sales - KT Market share NFML, 3% NFML, 4% AgriTech, 4% AgriTech, 5% 2023 6,642 Fatima , 15% 2022 6,615 FFC, 38% Fatima , 17% FFC, 37% 2023 2022 2021 6,343 6,642 KT 6,615 KT
Slide 9: DAP Market Share, market growth 34%
DAP Market Share, market growth 34% FY 2023, FY 2022, FFC+FFBL=60% FFC+FFBL=62% FFC: 105KT FFC: 70KT FFBL: 846KT FFBL: 661KT FFC, 6% FFC, 6% Others, 13% Others, 16% Fatima , 3% Fatima , 6% Market Size Market Size 1,578 KT Engro, 22% 1,176 KT Engro, 18% FFBL, 54% FFBL, 56% 34
Slide 10: Local Dealer Price vs Intl. Prices - Urea
Local Dealer Price vs Intl. Prices - Urea Benefit of USD 708Mn (PKR 198Bn) passed on to the farmers during FY 2023 10,460 9,970 Year end Selling Prices 9,560 International Price 8,900 9,020 Rs 6200 vs Retail Rs 3400 8,440 8,6108,790 8,460 8,030 8,090 7,460 7,7107,7407,440 6,710 6,410 6,380 6,090 6,1
Slide 11: Other Businesses
Other Businesses Renewable Energy / Wind Power Fauji Fresh n Freeze FFCEL FWEL I FWEL II Financial Performance vs 2022 Aggregate Financial Revenue 61% energy supplied Performance Gross Profit 138% vs 2022 to National Grid Revenue 26% Operating Profit 436% Gross Profit 26% Operating Profit 27% GP imp
Slide 12: Awards & Recognition
Awards & Recognition Best Presented Annual Report Awards 2022 by SAFA 01 • Bronze – Manufacturing Sector • Certificate of Merit – Integrated Reporting • Silver – Corporate Governance Best Corporate Report Award International 02 2022 by ICAP /ICMAP Achievement Awards Overall 1st position (15th time)
Slide 13: Any questions
? ANY QUESTIONS ®
Slide 14: Thank you
THANK YOU
Fauji Fertilizer Company — FY2023 Earnings Presentation on 6ix