Fertilizers: Dull volumes impacted profitability in 1Q - By JS Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">The fertilizer sector underperformed the KSE-100 index during CYTD, primarily due to weakened demand amid sub-optimal farm economics. Our analysis includes a sample of four listed fertilizer players: Fauji Fertilizer Company Limited (FFC), Engro Fertilizers Limited (EFERT), Fatima Fertilizer Company Limited (FATIMA), and Agritech Limited (AGL).</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">The sample posted a topline of Rs153bn, down 26% YoY due to weak volumes, with Urea and DAP sales falling 40% YoY and 48% YoY, respectively during 1QCY25. Notably, FFC reported 9% YoY topline growth on higher post-merger volumes, while EFERT, FATIMA, and AGL saw declines of 59%, 21%, and 18% YoY, respectively. Co...