Abu Qir Fertilizers’ bottomline falls 35% y-o-y in 1Q 2024-25

Abu Qir Fertilizers saw its net income fall 35.4% y-o-y during the first quarter of the fiscal year 2024-25 to record EGP 1.3 bn on the back of a jump in operating supply costs due to exchange rate fluctuations, according to its earnings release (pdf).

The company’s topline fared a bit better, inching down 1% y-o-y to EGP 5.1 bn for the quarter. However, revenues from its main activity saw a 16% y-o-y dip to EGP 3.6 bn.

Driving the dip: The company attributed the decline in revenues to lower sales, triggered by the disruptions that plagued the country’s gas supplies over the past months, which prompted the government to impose a scheduled load shedding, affecting the company’s productivity, and sales consequently. Lower FX prices of exports also played a role in the company’s diminishing sales, as well as an overflowing inventory.

Remember: Industry insiders told EnterpriseAM earlier this year that fertilizer manufacturers have been pushing for an approval to raise the prices of subsidized quantities to offset the increase in cost resulting from the float of the EGP.

But the company is eying a recovery, as most of the increased inventory was contracted for October and November, at a markup over the shipping rates in September, aiming to maximize returns, according to the release.