Archroma Pakistan : Transmission of Quarterly Report for the Period Ended 30 June 2022

3RD QUARTER REPORT 2022 (Ended June 2022)

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 Changes in Equity

Condensed Interim Statement of Cash Flows

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)
	Michel Zumstein		(Alternate: Naveed Kamil)
	Shahid Ghaffar
	Thomas Bucher
	Yasmin Peermohammad
Audit Committee	Shahid Ghaffar	- Chairman
	Michel Zumstein		(Alternate: Naveed Kamil)
	M Veqar Arif
	Irfan Lakhani	-	Secretary
Human Resources and	Yasmin Peermohammad	- Chairperson
Remuneration Committee	Michel Zumstein	-	(Alternate: Naveed Kamil)
	Mujtaba Rahim
	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
	B 157 Lalarukh, Wah Cantt
Website	www.archroma.com.pk
Email	[e-mail]

REPORT OF BOARD OF DIRECTORS

The Directors of your Company are pleased to present the financial report for the nine months ended 30 June 2022, together with the condensed interim financial information of the Company for the period ended 30 June 2022.

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

1. Non-ExecutiveDirectors: 4
2. Independent Directors: 2

BUSINESS OVERVIEW

Pakistan's Textile exports continued to remain strong during the third quarter of the ongoing Financial Year 2022, which has also positively contributed to your Company's overall performance. However, local market Textiles' sales & construction activity further slowed down during the quarter under review, mainly due to higher energy & commodity prices and double-digit inflation in other costs.

Your Company achieved net sales of PKR 19,416 million during the nine months period ended 30 June 2022

On behalf of the Board

Mujtaba Rahim

Chief Executive Officer

against PKR 14,844 million in comparison to the same period last year. Contribution to this strong overall sales growth of 31% has come from positive contributions from all the businesses, i.e. Brand & Performance Textile Specialties, Coating Adhesives & Sealants, Packaging & Paper Specialties & New Markets.

Higher taxation, freight & logistics costs and significant devaluation of PKR against USD and other foreign currencies during the quarter has adversely impacted the bottom-line profitability which has come down to PKR 1,467 million in comparison to PKR 1,756 million in the same period last year.

FUTURE OUTLOOK

The ongoing Russia-Ukraine conflict, Global Energy and Commodities prices and availability situation, and consequential adverse Balance of Trade of Pakistan, may keep the outlook for Textiles Exports & Construction Industry, somewhat uncertain.

However, the Management is optimistic that with the available export orders with our customers and Archroma's strong projects in the pipeline to further increase its market share and successful business development in New Markets' Home Care business, your Company is expected to maintain profitable growth momentum in short to medium term.

Irfan Chawala

Director

Karachi: 27 July 2022