PACRA Maintains Entity Ratings of Fauji Fertilizer Company Limited

Fauji Fertilizer Company Limited's ('FFC' or 'the Company') ratings reflect a strong market leadership position within Pakistan’s fertilizer industry, augmented by its association with Fauji Foundation, a growth-driven ‘Social Hybrid Enterprise’. FFC operates a strategically integrated production system with an average plant utilization rate above 124%. The Company holds a sizable long-term investment of ~PKR 77bln and substantial asset base of PKR 417bln as of CY24, comprising investments across multiple sectors of Pakistan, which has now consolidated further. The Company’s governance structure is robust, a diverse Board, which comprises of dynamic and highly skilled professionals. The Company is led by a seasoned management team. Following the acquisition of Fauji Fertilizer Bin Qasim Limited (FFBL), along with the acquisition of equity stake in Agritech (an associated company), FFC has emerged as the largest player in the fertilizer sector. This has expanded the FFC outreach in Urea market share to ~49% and DAP to ~63% as at Mar-25. The merger has notably enhanced FFC’s turnover to ~PKR 374bln in CY24 (CY23: ~PKR 159bln). The Company reported sales volume of 2,942 KT of Urea and 670 MT of DAP including imports. Despite headwinds, such as rising gas prices and inflationary pressures, FFC has demonstrated growth in profitability due to improved off-takes, record investment and dividend income. Additionally, effective cost control initiatives further strengthened the bottom line. The financial risk profile reflects a stable capital structure, stronger balance sheet with enhanced borrowing capacity, maintaining a favorable position for the Company. Coverages remain solid, supported by improved free cash flows, with risks well managed.
FFC's market dominance, strategic importance with Fauji Foundation, well-diversified product and investment portfolios and disciplined financial management underpin its strong market leadership position within Pakistan’s fertilizer sector.

About the Entity
Fauji Fertilizer Company Limited ('FFC' or 'the Company') is a public listed company, incorporated in 1978. The Company is engaged in marketing and sales of Urea, DAP, SOP, MOP, Boron, and Zinc. During CY24, the Company achieved a major milestone in expansion through merger with FFBL and acquisition of equity in Agritech Limited. As a result, FFC's annual Urea and DAP production capacity has reached to 2,599 KT and 650 KT respectively. The utilization level stood at ~124% during CY24 including contribution by Port Qasim plant during second half of the year. Fauji Foundation owns the majority stake of FFC at ~44%. The rest of the ownership is shared among the general public, foreign companies, public sector companies and financial institutions. The Company's Board is chaired by Lt. Gen Anwar Ali Hyder, HI(M) (Retired), whereas Mr. Jahangir Piracha heads the Company as the CEO, supported by a team of professionals. FFC as a Group holds a strong, diversified portfolio with strategic investments across key sectors including cement, fertilizer, banking, energy, food, and services sectors. This balanced portfolio reinforces the Company's market resilience and enhanced value creation.