ABOU KIR FERTILIZERS
ABUK
Financial ResultsNegative News
Abu Qir Fertilizers’ Q1 Profits Plunge 35% Amid Sales Slump and Rising Costs
Abu Qir Fertilizers' Q1 2024/25 profits fell 35% due to lower sales and higher costs, with EPS dropping 36% amid currency volatility.
November 13, 2024 at 9:40:00 AMScore: 85

Abu Qir Fertilizers witnessed a sharp decline in financial performance during Q1 of FY 2024/25, with net profits after tax dropping 35.35% year-on-year to EGP 1.28 billion, down from EGP 1.98 billion in Q1-23/24. The downturn was driven by a 16.39% fall in revenues to EGP 3.62 billion, attributed to lower sales volumes and heightened operating costs exacerbated by exchange rate volatility between the Egyptian pound and the US dollar. Earnings per share (EPS) also tumbled 36.30% to EGP 0.86, reflecting the broader financial strain. Despite these challenges, the company’s board approved the Q1 results on 7 November 2024. For the full fiscal year 2023/24, net profits dipped 4.32% to EGP 9.16 billion, signaling ongoing pressures.
Recommended Actions
- Monitor stock price trends for potential recovery signals.
- Assess the company’s cost-management strategies before investing.
- Review broader fertilizer market demand and currency stability.
- Consider holding or selling based on risk tolerance.
- Consult financial advisors for sector-specific insights.
Positive Aspects
- Board approval of Q1 financial results
- EGX-listed status ensures market transparency
Negative Aspects
- 35.35% drop in net profits after tax
- 16.39% YoY revenue decline
- 36.30% EPS contraction
- Increased operating costs from exchange rate fluctuations