ARCHROMA PAKISTAN LIMITED HALF YEAR REPORT 2023 (Ended March 2023)
CONTENTS
Company Information
Directors' Report
Condensed Interim Statement of Financial Position
Condensed Interim Statement of Profit or Loss and other Comprehensive Income
Condensed Interim Statement of Cash Flows
Condensed Interim Statement of Changes in Equity
Notes to the Condensed Interim Financial Statements
COMPANY INFORMATION
Chairman | M Veqar Arif | |
Board of Directors | Mujtaba Rahim | - Chief Executive Officer |
Marcos Furrer | (Alternate: Irfan Chawala) | |
Patrick Verraes | ||
Shahid Ghaffar | ||
Thomas Bucher | (Alternate: Naveed Kamil) | |
Yasmin Peermohammad | ||
Audit Committee | Shahid Ghaffar | - Chairman |
M Veqar Arif | ||
Thomas Bucher | (Alternate: Naveed Kamil) | |
Irfan Lakhani | - Secretary | |
Human Resources and | Yasmin Peermohammad | - Chairperson |
Remuneration Committee | Mujtaba Rahim | |
Thomas Bucher | (Alternate: Naveed Kamil) | |
Irfan Lakhani | - Secretary | |
Management Committee | Mujtaba Rahim | Naveed Kamil |
Irfan Chawala | Qazi Naeemuddin | |
Muhammad Altaf | ||
Chief Financial Officer | Irfan Chawala | |
Company Secretary | Irfan Lakhani | |
Bankers | Bank Al Habib Limited | |
Habib Bank Limited | ||
Habib Metropolitan Bank Limited | ||
MCB Bank Limited | ||
Meezan Bank Limited | ||
National Bank of Pakistan | ||
Standard Chartered Bank (Pakistan) Limited | ||
Auditors | KPMG Taseer Hadi & Co. Chartered Accountants | |
Legal Advisor | Fazleghani Advocates | |
Share Registrar | FAMCO Associates (Pvt) Limited | |
8-F, Next to Hotel Faran, Nursery | ||
Block-6, P.E.C.H.S., | ||
Shahra-e-Faisal, Karachi | ||
Registered Office | 1-A/1, Sector 20, | |
Korangi Industrial Area, Korangi, Karachi | ||
Factories | Petaro Road, Jamshoro | |
LX-10,LX-11, Landhi Industrial Area, Karachi | ||
Sales & Marketing Offices | Katar Bund Road, Off. Multan Road, | |
Thokar Niaz Baig, Lahore | ||
P-277, Kashmir Road, Amin Town, Faisalabad | ||
Website | www.archroma.com.pk | |
archroma.pakistan@archroma.com |
REPORT OF BOARD OF DIRECTORS
The Directors of your Company are pleased to present the financial report for half-year ended 31 March 2023, together with the condensed interim financial information of the Company for the period ended 31 March 2023, as reviewed by the external auditors.
Board Changes
Consequent to the resignation of Mr. Michel Zumstein from the Board in April, Mr. Patrick Verraes has been appointed in place with immediate effect.
The Board welcomed the new member and appreciated the valuable contribution of the outgoing member.
COMPOSITION OF BOARD
The composition of the Board is as follows:
a) Male members: | 6 |
b) Lady member: | 1 |
Out of the above: | |
a) Executive Director: | 1 |
- Non-ExecutiveDirectors: 4
- Independent Directors: 2
BUSINESS OVERVIEW
Archroma's major consumption Markets i.e. Textiles' and Construction Industry demand & consumer sales continued to remain slow both for local as well as exports during the first half of the current Financial Year under review, mainly due to prevailing Macro-economic and fiscal challenges, ever highest inflation, energy & commodity prices triggered after Russia-Ukraine conflict and devastating floods affecting one-third of the Country.
Despite the challenging environment and less than 50% production and capacity utilization for the Textiles' Industry, your Company was able to increase its market share position to achieve higher net sales of PKR 14,289 million during the half-year ended 31st March 2023 versus PKR 13,247 million in comparison to the same
On behalf of the Board
Mujtaba Rahim
Chief Executive Officer
period last year. This increase in sales of 8% was mainly contributed by Textile Effects, whose sales increased by 6% and Paper, Packaging & Coatings business, whose turnover increased by 32%, in comparison to the same period last year.
Gross Margins of all the businesses remained under pressure mainly due to severe devaluation of PKR versus US Dollar and other foreign currencies and consequential increase in Raw materials' import costs and therefore declined to PKR 3,778 million during the half year ended 31st March 2023 versus PKR 3,813 million in comparison to same period last year.
Higher borrowing costs & foreign exchange losses during the period further reduced the bottom-line profitability of the Company to PKR 622 million as against PKR 1,314 million achieved in comparison to the same period last year.
PROJECTS
After the closing of Global acquisition of Huntsman Textile effects business and local acquisition of Huntsman Textile Effects Pakistan during the quarter under review, by your Company's Holding Company i.e. Archroma Textiles GmbH, your Company is now actively working towards merger of Huntsman Textile Effects Pakistan into Archroma Pakistan Limited. Target date for such merger is October 2023.
FUTURE OUTLOOK
The ongoing Russia-Ukraine conflict, Global Energy and Commodities prices and availability situation, and consequential adverse Balance of Trade and Forex reserves' situation of Pakistan, continues to keep the outlook for the Textiles' Exports somewhat uncertain. However, selective improvement in local markets' and post-floodsre-construction activities is expected to contribute towards improvement in the overall business development for local Textiles and Construction Industry of the Country in the next fiscal year.
Irfan Chawala
Director
Karachi: 27 April 2023
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Archroma Pakistan Ltd. published this content on 28 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2023 05:46:04 UTC.
