FIRST QUARTER REPORT
JULY - SEPTEMBER 2023
CONTENTS
Page
COMPANY INFORMATION | 2 |
DIRECTORS' REVIEW | 3-4 |
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION | 5 |
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND | |
OTHER COMPREHENSIVE INCOME | 6 |
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY | 7 |
CONDENSED INTERIM STATEMENT OF CASH FLOWS | 8 |
NOTES TO AND FORMING PART OF THE CONDENSED | |
INTERIM FINANCIAL STATEMENTS | 9-18 |
DIRECTORS' REVIEW - IN URDU | 19-20 |
First Quarter Report 2023-2401
COMPANY INFORMATION
BOARD OF DIRECTORS | EXTERNAL AUDITORS |
Iqbal Ali Lakhani - Chairman | A. F. Ferguson & Co. |
Amin Mohammed Lakhani | Chartered Accountants |
Kamran Yousuf Mirza | |
Syed Shahid Ali Bukhari | INTERNAL AUDITORS |
Danish Zuberi | BDO Ebrahim & Co. |
Peter John Graylin | Chartered Accountants |
Xuan Dai | |
Zulfiqar Ali Lakhani - Chief Executive | SHARES REGISTRAR |
FAMCO Associates (Private) Limited | |
ADVISOR | 8-F, Near Hotel Faran, Nursery, Block-6, |
Sultan Ali Lakhani | P.E.C.H.S., Shahra-e-Faisal, Karachi. |
AUDIT COMMITTEE | REGISTERED OFFICE |
Kamran Yousuf Mirza - Chairman | Lakson Square, Building No. 2, |
Iqbal Ali Lakhani | Sarwar Shaheed Road, |
Amin Mohammed Lakhani | Karachi-74200 Pakistan |
Danish Zuberi | |
HUMAN RESOURCE & | FACTORIES |
REMUNERATION COMMITTEE | G-6, S.I.T.E., Kotri |
Kamran Yousuf Mirza - Chairman | District Jamshoro (Sindh) |
Iqbal Ali Lakhani | |
Zulfiqar Ali Lakhani | H-36 (B), S.I.T.E., Kotri |
Syed Shahid Ali Bukhari | District Jamshoro (Sindh) |
CHIEF FINANCIAL OFFICER | 217, Sundar Industrial Estate, |
Mudassir Iqbal | Raiwind Road, Lahore |
COMPANY SECRETARY | WEBSITE |
Mansoor Ahmed | www.colgate.com.pk |
02 First Quarter Report 2023-24
DIRECTORS' REVIEW
The directors of your Company are pleased to present the un-audited, condensed financial statements of the Company for the quarter ended September 30, 2023.
Financial Performance at a Glance
A brief financial analysis of the Company's performance for the quarter is summarized below:
July- September | July- September | Increase / | |
Operating Results | 2023 | 2022 | |
(Decrease) | |||
Amount in PKR million | |||
Turnover | 36,494 | 25,506 | 43.08% |
Net Turnover | 27,683 | 19,507 | 41.91% |
Gross Profit | 8,387 | 4,756 | 76.35% |
Gross Profit % | 30.30% | 24.38% | 592 BPS |
Selling & Distribution Cost | 2,735 | 2,068 | 32.25% |
Administrative Expenses | 251 | 209 | 20.10% |
Profit from Operations | 6,048 | 2,617 | 131.10% |
Profit After Tax | 3,701 | 1,718 | 115.56% |
Earnings per Share - Rupees | 15.24 | 7.07 | 115.56% |
Financial Performance Highlights
Net turnover of the Company grew by 42% on the back of volume gains, selling price adjustments and favorable pack mix changes. The improvement in the gross profit margin is attributed mainly due to the reduction in the material cost supported by relatively stabilized exchange rate and internal cost efficiencies.
Selling and distribution costs increased due to the continued investment in advertising and brand building activities.
Business Performance Highlights
Colgate launched its flagship 'Oral Health Month' drive, an intensive month-long oral health awareness campaign aimed at establishing and promoting the importance of good oral hygiene and regular dental check-ups. With the theme of 'Keep Pakistan Smiling,' the drive focused on spreading awareness amongst the masses about common oral health problems and how to prevent them.
First Quarter Report 2023-2403
Leveraging the momentum of the season, both Palmolive shampoo and soap continue to grow. The launch of Palmolive Naturals soap's new campaign successfully promoted the key benefit of soft and glowing skin. Focus on media and in-store activations have significantly bolstered the brands' presence in the competitive skin and hair care segments.
To gain market share, the detergent category continues to witness a high level of advertising and trade spend. In the dish care category, Lemon Max maintains its leading position.
Future Outlook
Pakistan's economy exhibited partial stability post approval of International Monetary Fund (IMF) standby arrangement program, unlocking new external financing while averting a balance of payment crisis. A marginal easing of import restrictions coupled with the appreciation of the local currency is expected to facilitate a modest recovery, however, structural challenges remain to be addressed. Issues including political instability, tighter monetary policy, ongoing inflationary pressure and decreasing consumer purchasing power could have an impact on future performance of the company. Furthermore, the escalating conflict in the Middle East could lead to an increase in oil and freight costs.
Acknowledgement
We would like to extend our sincere gratitude to our consumers for their trust in our brands. We are thankful to our customers, distributors, supply chain partners, bankers and shareholders for their continued support. We also appreciate our employees for their relentless dedication and immense contribution to the Company.
On behalf of Board of Directors
Iqbal Ali Lakhani | Zulfiqar Ali Lakhani |
Chairman | Chief Executive |
Karachi : October 27, 2023 |
04 First Quarter Report 2023-24
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
As at September 30, 2023 |
Note |
ASSETS |
NON-CURRENT ASSETS |
September 30, | June 30, |
2023 | 2023 |
(unaudited) | (audited) |
(Rupees in '000)
Property, plant and equipment | 4 |
Intangible assets | |
Long term loans | |
Long term security deposits | |
CURRENT ASSETS | |
Stores and spares | |
Stock in trade | 5 |
Trade debts | |
Loans and advances | |
Trade deposits and short term prepayments | |
Other receivables | |
Accrued profit | |
Short term investments | 6 |
Cash and bank balances | |
TOTAL ASSETS | |
EQUITY AND LIABILITIES | |
CAPITAL AND RESERVES | |
Authorised share capital | |
Issued, subscribed and paid-up share capital | 7 |
Reserves | |
Remeasurement of post retirement benefits obligation | |
LIABILITIES | |
NON-CURRENT LIABILITIES | |
Deferred taxation | |
Long term deposits | |
Deferred liability | |
Long-term financing | 8 |
Deferred grant | |
Lease liabilities | |
CURRENT LIABILITIES | |
Trade and other payables | 9 |
Accrued mark-up | |
Current maturity of long-term financing | |
Current maturity of lease liabilities | |
Taxation - net | |
Unpaid dividend | 10 |
Unclaimed dividend | |
TOTAL LIABILITIES | |
CONTINGENCIES AND COMMITMENTS | 11 |
8,019,097
6,405
85,447
22,452
8,133,401
791,364
15,605,698
2,189,982
356,651
133,529
2,475,755
60,848
17,608,777
5,002,939
44,225,543
52,358,944
2,500,000
2,427,733
25,864,944
(275,285)
28,017,392
434,900
51,982
137,186
671,823
287,094
281,783
1,864,768
17,414,111
7,030
130,333
61,113
2,861,634
1,966,693
35,870
22,476,784
24,341,552
7,836,920
7,198
76,180
21,260
7,941,558
701,919
15,356,715
2,017,453
459,913
171,500
1,013,343
29,639
14,262,005
5,492,509
39,504,996
47,446,554
2,500,000
2,427,733
22,164,400
(275,285)
24,316,848
392,697
51,264
191,865
702,580
291,488
290,452
1,920,346
16,494,293
7,056
109,465
66,001
1,684,759
2,811,659
36,127
21,209,360
23,129,706
TOTAL EQUITY AND LIABILITIES |
52,358,944 | 47,446,554 |
The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.
Iqbal Ali Lakhani | Zulfiqar Ali Lakhani | Mudassir Iqbal |
Chairman/Director | Chief Executive | Chief Financial Officer |
First Quarter Report 2023-2405
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (Unaudited)
For the Quarter ended September 30, 2023
Note Quarter ended Quarter ended September 30, September 30,
20232022 (Rupees in '000)
Turnover
Sales tax
Trade and other discounts
Net turnover
Cost of sales
Gross profit
Selling and distribution cost
Administrative expenses
Other expenses
Other income
Profit from operations
Finance cost and bank charges
Profit before taxation
Taxation
- Current - for the quarter
- for prior year
- Deferred
Profit after taxation
Other comprehensive income for the quarter
Total comprehensive income for the quarter
Earnings per share - basic and diluted | 12 |
36,494,361 | 25,505,771 | ||||||||
(6,043,442) | (4,002,929) | ||||||||
(2,767,853) | (1,996,069) | ||||||||
27,683,066 | 19,506,773 | ||||||||
(19,296,190) | (14,750,862) | ||||||||
8,386,876 | 4,755,911 | ||||||||
(2,735,210) | (2,068,352) | ||||||||
(250,785) | (209,409) | ||||||||
(450,096) | (213,501) | ||||||||
1,097,568 | 352,546 | ||||||||
6,048,353 | 2,617,195 | ||||||||
(38,626) | (36,642) | ||||||||
6,009,727 | 2,580,553 | ||||||||
(2,255,835) | (834,967) | ||||||||
(11,145) | - | ||||||||
(2,266,980) | (834,967) | ||||||||
(42,203) | (28,064) | ||||||||
(2,309,183) | (863,031) | ||||||||
3,700,544 | 1,717,522 | ||||||||
- | - | ||||||||
3,700,544 | 1,717,522 | ||||||||
------------(Rupees)------------ | |||||||||
(Restated) |
15.247.07
The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.
Iqbal Ali Lakhani | Zulfiqar Ali Lakhani | Mudassir Iqbal |
Chairman/Director | Chief Executive | Chief Financial Officer |
06 First Quarter Report 2023-24
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (Unaudited)
For the Quarter ended September 30, 2023
Issued, | Reserves | Remeasurement | ||||||||||
subscribed | Capital | on post retire- | ||||||||||
Revenue reserves | Sub | Total | ||||||||||
and paid up | ment benefits | |||||||||||
reserve- | General | Unappro- | Total- | Equity | ||||||||
share capital | share | obligation- net | ||||||||||
reserve | priated | reserves | ||||||||||
premium | profit | of tax | ||||||||||
Balance as at July 1, 2022 | (Rupees in '000) | |||||||||||
727,956 | 13,456 | 17,920,000 | 4,088,766) | 22,022,222) | (201,936) 22,548,242 | |||||||
Transactions with owners
Final dividend for the year ended June 30, 2022 at the rate of Rs 28 per share
Bonus shares issued at the rate of three shares for every twenty shares held
Total transactions with owners
Comprehensive income for the quarter
-
109,193
109,193
-
-
-
- | (2,038,276) | (2,038,276) | ||
- | (109,193) | (109,193) | ||
- | (2,147,469) | (2,147,469) |
- (2,038,276)
- -
- (2,038,276)
Profit after taxation for the quarter ended September 30, 2022
Other comprehensive income
Total comprehensive income for the quarter ended September 30, 2022
Transfer to general reserve Balance as at September 30, 2022
Balance as at July 1, 2023
Comprehensive income for the quarter
-
-
-
-
837,149
2,427,733
-
-
-
-
13,456
13,456
- | 1,717,522) | 1,717,522) | - | 1,717,522) | ||||
- | - | - | - | - | ||||
- | 1,717,522) | 1,717,522) | - | 1,717,522) | ||||
1,941,000 | (1,941,000) | - | - | - | ||||
19,861,000 | 1,717,819) | 21,592,275) | (201,936) | 22,227,488) | ||||
19,861,000 | 2,289,944) | 22,164,400) | (275,285) | 24,316,848) |
Profit after taxation for the quarter ended September 30, 2023
Other comprehensive income
Total comprehensive income for the quarter ended September 30, 2023
Transfer to general reserve
-
-
-
-
-
-
-
-
- | 3,700,544) | 3,700,544) | ||
- | - | - | ||
- 3,700,544) 3,700,544)
1,057,000 | (1,057,000) | - | ||
-
-
-
-
3,700,544)
-
3,700,544)
-
Balance as at September 30, 2023
2,427,733
13,456
20,918,000 4,933,488) 25,864,944) (275,285) 28,017,392)
The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.
Iqbal Ali Lakhani | Zulfiqar Ali Lakhani | Mudassir Iqbal |
Chairman/Director | Chief Executive | Chief Financial Officer |
First Quarter Report 2023-2407
CONDENSED INTERIM STATEMENT OF CASH FLOWS (Unaudited )
For the Quarter ended September 30, 2023
Note Quarter ended Quarter ended September 30, September 30,
20232022 (Rupees in '000)
CASH FLOWS FROM OPERATING ACTIVITIES | |
Cash generated from operations | 13 |
Finance cost and bank charges paid
Taxes paid
Staff retirement benefit paid
Long term loans
Long term security deposits (assets)
Long term deposits
Net cash generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment Purchase of intangible assets
Short term investments made during the quarter Proceeds from sale of property, plant and equipment Profit received on savings accounts
Profit received on treasury bills
Profit received on term deposit receipts
Sale proceeds on disposal of short term investments Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES Dividend paid
Long-term financing repaid
Short-term financing repaid
Payment of lease liabilities
Net cash used in financing activities
Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the quarter Cash and cash equivalents at the end of the quarter 14
4,972,868
(28,022)
(1,090,106)
(80,000)
(9,267)
(1,192)
718
3,764,999
(431,588)
(190)
(4,217,346)
7,961
158,984
590
42,626
1,068,087
(3,370,876)
(845,223)
(14,283)
-
(24,187)
(883,693)
(489,570)
5,492,509
5,002,939
2,390,336
(23,683)
(709,204)
(76,106)
1,547
(194)
(2,130)
1,580,566
(319,614)
(4,976)
(7,637,621)
18,583
75,529
406
3,369
7,808,196
(56,128)
(5)
(126,621)
(42,334)
(15,942)
(184,902)
1,339,536
2,978,308
4,317,844
The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.
Iqbal Ali Lakhani | Zulfiqar Ali Lakhani | Mudassir Iqbal |
Chairman/Director | Chief Executive | Chief Financial Officer |
08 First Quarter Report 2023-24
NOTES TO AND FORMING PART OF THE
CONDENSED INTERIM FINANCIAL STATEMENTS (Unaudited)
For the Quarter ended September 30, 2023
-
THE COMPANY AND ITS OPERATIONS
Colgate-Palmolive (Pakistan) Limited (the Company) was initially incorporated in Pakistan on December 5, 1977 as a public limited company with the name of National Detergents Limited. The name of the Company was changed to Colgate-Palmolive (Pakistan) Limited on March 28, 1990 when the Company entered into a Participation Agreement with Colgate-Palmolive Company, USA. The Company is listed on Pakistan Stock Exchange. The registered office of the Company is situated at Lakson Square, Building No. 2, Sarwar Shaheed Road, Karachi, Pakistan.
The Company is mainly engaged in the manufacture and sale of detergents, personal care and other related products. - BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
2.1 Statement of compliance
These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting which comprise of International Accounting Standard (IAS) 34 'Interim Financial Reporting' issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017 (the Act) and provisions of and directives issued under the Act.
Where the provisions of and directives issued under the Act differ with the requirements of IAS 34, the provisions of and directives issued under the Act have been followed.
- These condensed interim financial statements do not include all the information and disclosures required in an annual audited financial statements, and should be read in conjunction with the Company's annual audited financial statements for the year ended June 30, 2023.
- New standards, amendments to approved accounting standards and new interpretations
2.3.1 Amendments to approved accounting standards which are effective during the year ending June 30, 2024
There are certain amendments to approved accounting standards which are mandatory for accounting periods beginning on or after July 1, 2023 but are considered not to be relevant or have any significant effect on the Company's financial reporting.
First Quarter Report 2023-2409
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Colgate-Palmolive (Pakistan) Ltd. published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 09:19:11 UTC.