Fatima Fertilizer Company Limited (“FFCL” or “the Company”) was incorporated in December 2003 as a public limited Company under the repealed Companies Ordinance, 1984 (now the Companies Act, 2017). The Company was subsequently listed on the Pakistan Stock Exchange (PSX) in 2010.

The Company was established as a joint venture between two prominent business conglomerates in Pakistan: the Fatima Group and the Arif Habib Group. Its fully integrated fertilizer production facility was launched in 2006 in Sadiqabad, Punjab. This complex benefits from a dedicated gas allocation of 110 MMCFD from the Mari Gas Field and features 56 MW of captive power plants along with a comprehensive off-site infrastructure and utilities. This facility was commercialized on July 1, 2011. As part of its strategic expansion, the Company acquired a production and operating plant from its associated entity, Pakarab Fertilizers Limited, located on Khanewal Road, Multan, effective September 1, 2020. Subsequently, Pakarab Fertilizers Limited was fully amalgamated into the Company, effective July 1, 2022. Additionally, in 2015, the Company acquired the Sheikhupura plant, formerly operated under the name Fatimafert Limited.

The principal activity of the Company is manufacturing, producing, buying, selling, importing and exporting fertilizers and chemicals. Its head office is located at E-110, Khayaban-e-Jinnah, Lahore Cantt. The Company's operational infrastructure comprises three production facilities across Punjab: Sadiqabad Plant in Mukhtar Garh, Sadiqabad Multan Plant on Khanewal Road, Multan Fatimafert Plant at 28 KM Sheikhupura Road, Chichoki Mallian (formerly Fatimafert Limited). The Company primarily produces Urea, Calcium Ammonium Nitrate (CAN), Nitro Phosphate (NP), and Diammonium Phosphate (DAP), utilizing two key intermediary products, Ammonia and Nitric Acid. As of CY24, the Company's nameplate capacity stood at ~2.57 MT per annum.

Fatima Group holds approximately 59.0% of the Company’s total shareholding, while Arif Habib Group owns around 32.0%. The remaining 9.0% of the Company’s shares are held by the general public.

The ownership structure of the Company has remained stable since its inception, augmented by the long-term association with two leading business groups. This institutional backing benefited the Company with both financial strength and strategic direction, contributing to the sustained growth and resilience. This stability is expected to continue in the foreseeable future. Additionally, the members of the second generation have now been inducted into the business, reflecting the continuity of leadership.

The sponsors possess in-depth knowledge and diversified business exposure across multiple sectors of the country's economy. Their strong vision and invaluable business insight have enabled the Company to effectively navigate industry challenges. Over the years, the Company has experienced several economic cycles, yet its growth has remained consistent.

The Company's financial strength stems from its position as both an operating and holding entity, with a consolidated annual turnover of ~PKR 256.9bln and a consolidated asset base of ~PKR 316.8bln, as per the CY24 audited figures. This is further reinforced by the sponsor's willingness and strong financial capacity to support the Company, if needed. Fatima Group is one of the leading corporate entities in Pakistan, engaged in the trading of commodities and the manufacturing of fertilizers, textiles, sugar, as well as operations in mining and energy. Meanwhile, Arif Habib Group ranks among the most prominent financial services conglomerates in the country, with interests in financial advisory, investment management, commodities, private equity, cement, and fertilizer industries.

The overall control of the board is vested with seven members, including the Chairman and the CEO. The composition of the board includes three non-executive directors, two executive directors, and two independent directors, one of whom is a female director, depicting the essence of a sound governance framework.

The Chairman, Mr. Arif Habib, Chief Executive of Arif Habib Corporation Limited, brings with him several decades of industry-specific experience. He holds a directorship position at Arif Habib Equity (Pvt.) Limited, Arif Habib Consultancy (Pvt.) Limited, Fatima Cement Limited, International Builders and Developers (Pvt.) Limited, NCEL Building Management Limited, Pakarab Energy Limited, Pakistan Business Council, Pakistan Engineering Company Limited, and Pakistan Opportunities Limited. The CEO, Mr. Fawad Ahmed Mukhtar, possesses over 34 years of professional experience. He is serving the Chairman of Reliance Weaving Mills Limited, Fatima Holding Limited, Fatima Sugar Mills Limited, Reliance Commodities (Pvt.) Limited, and Air One (Pvt.) Limited. He also serves as the CEO of Fatimafert Limited, Pakarab Fertilizers Limited, Fatima Cement Limited, and Fatima Trading Company (Pvt.) Limited. Mr. Fazal Ahmed Sheikh holds a degree in Economics from the University of Michigan, Ann Arbor, USA. He is the CEO of Fatima Energy Limited, Fatima Electric Company Limited, Fatima Management Company Limited, Pakarab Energy Limited, and Air One (Pvt.) Limited. Mr. Faisal Ahmed Mukhtar, the former City District Nazim of Multan, serves as the CEO of Reliance Weaving Mills Limited, Fatima Sugar Mills Limited, Farrukh Trading Company Limited, Fatima Holding Limited, and Fatima Steel Mills Limited. Mr. Muhammad Kashif Habib completed his articleship with A.F. Ferguson & Co. (a member firm of PricewaterhouseCoopers). He holds directorships at Arif Habib Corporation Limited, Aisha Steel Mills Limited, Javedan Corporation Limited, Arif Habib Equity (Pvt.) Limited, Arif Habib Foundation, Arif Habib Development and Engineering Consultants (Pvt.) Limited, and Black Gold Power Limited. Mr. Tariq Jamali holds an MBA from the University of Dallas, USA, a BS in Civil Engineering from the University of Texas at Arlington, USA, and a DAIBP from the Institute of Bankers Pakistan, Karachi. He is the former SEVP / Group Chief of Centralized Operations & Administration Group at the National Bank of Pakistan (NBP) and brings over 30 years of experience. Mrs. Julie Jannerup holds a Master’s degree in Chemical Engineering and brings unique value to the organization, supporting the Company in its development and long-term growth.

In line with best corporate governance practices, the Company has established three board committees: the Audit Committee, chaired by Mr. Tariq Jamali; the Human Resource & Remuneration Committee, chaired by Mrs. Julie Jannerup; and the Nomination and Risk Management Committee, chaired by Mr. Fazal Ahmed Sheikh. During CY24, six Board of Directors (BOD) meetings, four Audit Committee meetings, and one Human Resource Committee meeting were convened. Attendance at these meetings remained strong, and minutes were formally documented.

To maintain the high standards of transparency, the Company has appointed Yousuf Adil, Chartered Accountants, as its external auditors. The firm is rated in ‘Category A’ by the State Bank of Pakistan (SBP) panel of auditors. They expressed an unqualified opinion on the financial statements of the Company for the period ended December 31st, 2024. 

The Company has implemented a structured and well-defined organizational hierarchy to efficiently manage its multifaceted operations. Key operational heads—Director Sales & Marketing, Director Legal & Company Secretary, Director Business Development, Head of Supply Chain, Head of Lean Six Sigma, and Head of Administration—report to the Chief Operating Officer (COO). In contrast, Director Technology, Chief Manufacturing Officer, Director Human Resources, Advisor Projects, Chief Information Officer, Director Strategy, Chief Financial Officer, and the Chief Operating Officer report directly to the Chief Executive Officer (CEO). The Head of Internal Audit, however, reports independently to the Board Audit Committee.

The CEO, Mr. Fawad Ahmed Mukhtar, brings with him an extensive experience of around 32 years in manufacturing and industrial management. Currently, he is serving as the Chairman of Reliance Weaving Mills Limited, Fatima Holding Limited, Fatima Sugar Mills Limited, Reliance Commodities (Pvt.) Limited, Air One (Pvt.) Limited and is serving as the CEO of Fatimafert Limited, Pakarab Fertilizers Limited, Fatima Cement Limited and Fatima Trading Company (Pvt.) Limited. The Chief Operating Officer (COO), Mr. Asad Murad, is a Fellow Chartered Accountant with over 27 years of experience. He joined Fatima Group in 2010 as Group Head of Internal Audit and subsequently served as the Chief Financial Officer of the Company from March 2014 to February 2021, and again from June 2022 to January 2025. He also served as the Chief Financial Officer at Honda Atlas Cars (Pakistan) Limited, a subsidiary of Honda Motor Company, Japan. The CFO, Mr. Syed Hyder Hasan, has over 27 years of progressive experience performing global, regional, and country roles for Unilever, Ingredion, and Indorama Corporation. He is a seasoned executive with local & international experience across diverse cultures and multiple industries in B2B and B2C businesses. Outside Pakistan, he has lived and worked in Singapore, Malaysia, Thailand, and Philippines. was selected among the Top 10 CFOs from Malaysia in 2023 and was selected among 100 Power Leaders in Finance in 2022. He is an FCMA from Pakistan and a recipient of an Honorary Professional Doctorate in Finance from European International University – Paris. He is assisted by a team of experienced professionals.

To ensure efficient and smooth flow of operations, the Company has established five management-level committees: the Executive Committee, which oversees daily operations and strategic planning; the Project Review Committee, which monitors project execution; the Enterprise Risk Management (ERM) Committee, which manages business risks; the Ethics Committee, which promotes integrity and compliance; and other specialized management committees that support operational and regulatory functions.  

The Company has implemented Oracle Analytics Server (OAS) to enhance system performance, security, and scalability. This transition unlocked advanced machine learning capabilities, improved data visualizations, and enabled faster reporting and seamless IT integration. As a result, financial planning, budgeting, and forecasting processes have become more accurate and efficient.

The Company has established a strong and proactive control environment, earning multiple prestigious awards and certifications in recognition of its commitment to health, safety, environment, and quality namely British Safety Council International Safety Awards, RoSPA Gold Award for exceptional performance in Health, Safety, and Environment (HSE), ISO 45001 – Occupational Health and Safety Management System, ISO 9001 – Quality Management System, ISO 14001 – Environmental Management System, WWF Green Office Diploma, The Professionals Network 10th International EHS Award 2024, NFEH Fire Safety Award 2024, NFEH Annual Environment Excellence Award 2024,  NSC Safety Awards, including Safety Leadership, Perfect Record, and Hazard Recognition. During CY24, the Company achieved real-time hazard identification and proactive risk mitigation following the launch of the Incident Reporting System within Sarsabz Connect for enhancing workplace safety through efficient tracking. Furthermore, the Company has now transitioned from an outsourced Disaster Recovery (DR) site to an advanced and secure in-house DR site ensured via a comprehensive drill.

The Fertilizers industry is oligopolistic, dominated by three players, i.e., Fauji (post FFC and FFBL merger in Dec-24). Engro and Fatima. Urea and DAP remain the primary fertilizers by volume. While Pakistan is self-sufficient in Urea, gas shortages necessitate Urea imports (~0.2mln MT in CY24). DAP is largely imported, as FFC is the only local manufacturer. Total fertilizer production averaged ~9.1mln MT (CY2024) vs offtake of ~9.9mln MT. In CY24, production rose ~6.9% YoY, while offtake dipped ~1.1% YoY. The offtake of NP declined by 18.8% YoY to 813,000 MT (CY23: 1,000,000 MT), marking a reversal from the highest-ever annual offtake recorded in the previous year. FFCL maintained its dominant position in this segment, accounting for the entire market with a reported offtake of 813,000 MT. Urea led production (~53.6%), while Urea and DAP formed ~65.6% and ~16.2% of the total offtake, respectively. DAP imports surged ~80.4% in CY24, likely driven by Punjab’s Kissan Card Scheme of ~PKR 75bln. Overall, the sector's outlook remains stable.

Fatima Fertilizer Company Limited (FFCL) holds a notable production-based market share within the fertilizer industry. The Company has established a strong market presence, primarily driven by its widely recognized and trusted flagship brands, ‘Sarsabz’ and ‘Bubbersher’.

The Company achieved a 3-year compound annual growth rate (CAGR) of 16.3% from December 2022 to December 2024, with revenue reaching PKR 238.4bln in CY24, up from PKR 232.7bln in CY23. The year-on-year growth was primarily driven by increased production volumes of NP, rising from 713,038 MT to 852,490 MT, CAN & Urea consolidated capacity, which grew from 985,419 MT to 1,087,620 MT. In 1QCY25, the Company’s topline exhibited a dilution on a quarter-on-quarter basis and clocked at PKR 42.9bln (1QCY24: PKR 65.2bln), following a dip in the fertilizer offtake, which has been observed throughout the industry.

The Company's gross margin notably improved to 36.7% (CY23: 31.1%) on the back of firm product prices. The operating margin stood at 26.6% (CY23: 23.1%) due to an uptick in administrative and selling expenses. However, the income from the strategic investment portfolio and higher return on lending to related parties has augmented the profitability matrix. The finance cost and taxation expenses remained largely the same during the period. Consequently, the Company’s bottom line was recorded as historically high at PKR 34.9bln (CY23: PKR 22.3bln. The net profit margin improved sizably to 14.7% (CY23: 9.6%). In 1QCY25, the gross profit margin and net profit margin improved to 43.8% and 17.5% respectively.

As part of a long-term strategic business initiative, operations of the Sheikhupura Plant were transferred to Fatimafert Limited, a wholly owned subsidiary, effective July 1, 2024. Additionally, the scheme for the carve-out of Multan Plant operations and their amalgamation into Pakarab Fertilizers Limited, another wholly owned subsidiary, is currently under review and pending formal approval from regulatory authorities. To improve fertilizer accessibility at controlled prices, the Company launched six retail outlets under the Sarsabz Agri Mart brand during the year. Looking ahead, 24 additional outlets are planned for 2025 at strategically selected locations across Pakistan. This initiative aims to further support and serve the Company’s rapidly expanding network of over 70,000 registered farmers.

The Company prefers to fuel its working capital requirements mainly through internally generated cash. In 1QCY25, the Company’s working capital cycle was stretched to 131 days (CY24: 68 days), attributed to a notable increase inventory cycle to 115 days (CY24: 63 days), following higher inventory levels depicting the industry trend. The receivables cycle extended to 29 days compared to 21 days. The Company’s short-term trade leverage further increased to 74.4% (CY24: 71.5%), demonstrating a higher borrowing capacity. The Company has maintained a strong liquidity position as evidenced by the current ratio of 1.7.

In 1QCY25, the Company generated free cash flows from operations (FCFO) of PKR 8.2bln (CY24: PKR 41.4bln), reflecting prudent financial management and a continued focus on operational efficiency. The coverages of the Company remained in a comfortable range despite higher current maturity during the period. Furthermore, the Company’s debt payback period increased to 1.6 years (CY24: 1.2 years).

The Company has maintained a low-leveraged capital structure. In 1QCY25, the leveraging of FFCL slightly decreased to 28.2% (CY24: 30.7%). The debt profile of the Company remained heavily concentrated in shariah-compliant islamic debt, constituting 27.3% of the total borrowings. The Company’s equity base further strengthened to PKR 149.2bln in 1QCY25, up from PKR 141.7bln in CY24, primarily driven by the retention of consolidated profits.