Islamabad: Fauji Fertilizer Limited (FFC) convened a corporate briefing today to discuss its recent financial performance and future strategies. The company reported a significant earnings increase to Rs38.5 billion, marking a 47% year-over-year growth, with an earnings per share (EPS) of Rs27.02 for the first half of the calendar year 2025.

FFC’s revenue reached Rs155 billion, a 35% increase from the previous year, primarily driven by higher volumes following a recent merger. The company achieved a gross margin of 34% during the same period. Notably, in the second quarter of 2025, FFC’s EPS rose to Rs17.69, reflecting a 62% year-over-year increase.

During the briefing, FFC management reaffirmed its commitment to achieving full Shariah compliance within the year. Most non-compliant short-term investments have already been transitioned to Shariah-compliant funds, although concerns about non-compliant income persist.

Additionally, the management highlighted that Allied Bank Limited (AKBL) is progressing toward Shariah compliance, with plans to transition 30% of its branches within this year and complete compliance by the end of 2027.

The rise in other income during the second quarter of 2025 was attributed to substantial dividend payouts from subsidiaries and associates. FFC’s energy sector investments contributed Rs9 billion, while PMP added Rs7 billion. The remaining income came from short-term investments.

Looking ahead, FFC anticipates elevated inventory levels through year-end, with uncertain export prospects. However, the company remains well-positioned to expand its market share through an extensive distribution network. In response to sub-optimal farm economics, FFC offered partial discounts on Urea during the second quarter, with future discounts contingent on demand.