Agritech reports robust financial results for 2024

Agritech (formerly known as Pak-American Fertilizers) concluded 2024 with strong financial results underpinned by a series of operational achievements and strategic advancements. The company’s annual report disclosed a 41.2% surge in revenue, amounting to PKR 31.307 billion ($ 111.71 million), driven primarily by increased production volumes and strategic pricing adjustments.

The Chairman of the Board, Shahid Iqbal Choudhri, emphasized that the year was marked by “exceptional operational achievements, strategic innovation, and sound financial management.” Notably, the company’s urea plant operated at peak capacity, producing 372,000 metric tonnes of urea, the highest in the last decade, thanks to a consistent gas supply. This represents a significant increase from the 292,000 metric tonnes produced in 2023.

Despite the impressive revenue growth, the company faced challenges, as net profit declined by 203% to PKR 1.11 billion ($3.96 million). The operational profit, however, saw a substantial increase of 59%, amounting to PKR 2.2 billion.

In addition to urea, the company maintained steady production of Granular Single Superphosphate (GSSP), with 80,000 metric tonnes produced, matching the previous year’s output. However, sales of GSSP declined slightly from 80,000 metric tonnes in 2023 to 71,000 metric tonnes in 2024.

The year also witnessed significant developments in the broader fertilizer industry. The Government of Pakistan imported 173,000 metric tonnes of urea early in the year, a sharp increase from the 48,000 metric tonnes imported in 2023, to bolster the national urea buffer stock. Agritech Limited received a portion of this imported urea, amounting to 13,000 metric tonnes.

Moreover, the phosphate production in Pakistan increased by 24% to 593,000 metric tonnes of P2O5 in 2024, from 478,000 metric tonnes in 2023, thanks to the uninterrupted gas supply to phosphatic-producing plants.

The company also saw changes in its shareholding structure, with major manufacturing concerns, Fauji Fertilizer Company (FFC) and Maple Leaf Cement Factory (MLCF), successfully acquiring significant stakes. This acquisition is poised to strengthen the company’s operational capabilities and technical expertise, particularly through the leadership and technical acumen provided by FFC.

Agritech continues to be a pivotal player in Pakistan’s fertilizer sector. It operates one of the newest and most efficient urea manufacturing plants in Mianwali, Punjab, and produces GSSP in Haripur Hazara, Khyber Pakhtunkhwa. These operations are central to the company’s strategic positioning and continued growth in the industry.