ISLAMABAD: Fauji Fertilizer Company (FFC) held its Corporate Briefing Session today, where the management reviewed the company's financial performance and shared future projections. Key points included the company's decision not to adjust urea prices despite rising international oil costs, a decline in market share, and the acquisition of Pakistan International Airlines (PIA) through a Special Purpose Venture.
According to JS Global, FFC's management reported a 2.3% expansion in the overall urea market, though FFC's market share decreased to 43% in 2025 from 48% in 2024 due to a reduction in sales volumes. The company's urea sales fell by 6% year-over-year to 2.9 million tons, attributed mainly to a significant drop in Sona NC sales, while Sona P volumes increased by 3% year-over-year. The DAP fertilizer market contracted by 18%, with FFC's sales mirroring this decline, though the company's market share remained stable.
Inventory levels have risen to Rs38 billion due to stockpiling in response to higher phosphorus prices. The Sona Centre network has expanded its farmer engagement, registering over 118,000 farmers and facilitating sales of 65,000 tons of fertilizer. The company operates 244 Sona stores nationwide and plans further expansion to improve agricultural services and ensure fertilizer availability.
FFC announced its involvement in the acquisition of PIA through a Special Purpose Venture named PIA Equity (Pvt) Ltd, alongside other investors. The total transaction is valued at Rs185 billion, with FFC holding a 34% stake. The financial performance for 2025 showed a net profit of Rs73.6 billion, with a balanced earnings mix from core operations and investment returns. An annual cash dividend of Rs8.5 per share was declared, bringing the total for 2025 to Rs37 per share.
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