Pakistan Aluminium Beverage Cans : Transmission of Quarterly Report for the Period Ended 31-March-2024

CONTENTS

Company Information	4
Directors' Report	5
Condensed Interim Statement of Financial Position	7
Condensed Interim Statement of Profit or Loss	9
Condensed Interim Statement of
Comprehensive Income	10
Condensed Interim Statement of Changes in Equity	11
Condensed Interim Statement of Cash Flows	12
Notes to the Condensed Interim Financial Statements	13
	17

PAKISTAN ALUMINIUM BEVERAGE CANS LIMITED 1ST QUARTERLY REPORT MARCH 31, 2024

COMPANY INFORMATION

Board of Directors
• Mr. Simon Michael Gwyn Jennings	Chairman and Non-Executive Director
•	Mr. Azam Sakrani	Chief Executive Officer and Director
• Mr. Asad Shahid Soorty	Non-Executive Director
• Ms. Hamida Salim Mukaty	Non-Executive Director
•	Mr. Salim Parekh	Independent Director
• Mr. Zain Ashraf Mukaty	Non-Executive Director
•	Mr. Irfan Zakaria	Independent Director
Audit Committee
•	Mr. Irfan Zakaria	Chairman
• Mr. Asad Shahid Soorty	Member
• Mr. Zain Ashraf Mukaty	Member
Human Resource and Remuneration Committee
•	Mr. Salim Parekh	Chairman
• Mr. Simon Michael Gwyn Jennings	Member
• Mr. Zain Ashraf Mukaty	Member

Chief Financial Officer

• Mr. Syed Asad Hussain Zaidi

Company Secretary

• Mr. Sohail Akhtar Gogal

Registered Office / Main Office

• 29 & 30, M-3 Industrial City, Main Boulevard, Sahianwala, Faisalabad

Auditors

• Kreston Hyder Bhimji & Co. Chartered Accountants

Legal Advisor

• Mr. Muhammad Mehmood Arif

Share Registrar

• THK Associates (Pvt) Ltd
  Plot No. 32-C, Jami Commercial Street 2, D.H.A Phase VII, Karachi, 75500 Pakistan. Tel: [phone] Email: [e-mail]

Website

• www.pkbevcan.com 04PAGE

PAKISTAN ALUMINIUM BEVERAGE CANS LIMITED 1ST QUARTERLY REPORT MARCH 31, 2024

DIRECTORS' REPORT

The Directors of the Pakistan Aluminium Beverage Cans Limited (the "Company") are pleased to submit the un- audited financial statements of your Company for the quarter ended March 31, 2024.

Business Performance Review

Our company's performance in the first quarter of 2024 was negatively impacted by domestic, regional and global factors, as well as inflationary pressures, particularly with fuel and energy costs. These challenges, led to our net sales for the quarter ending March 31, 2024, falling to Rs. 4.61 billion, a decrease of 11% compared to the same period last year. This decline was primarily due to reduced volumes, especially in local can sales. Our gross profit margin decreased to 30.07% from 39.49% in the same period last year due to a higher proportion of export sales, inflation and ramp up costs. Our profit after tax decreased by Rs. 439 million to Rs. 903 million. Resultantly our net profit margin during first quarter of 2024 was 19.60% compared to 25.92% during same period last year. It's important to note that we have provisioned for current taxation based on our minimum tax liability, despite filing a petition challenging the chargeability of minimum tax as we operate in a special economic zone exempt from taxes. The decision on this matter is pending in court, and we have made a full provision for the amount as a prudent measure. As a result, our Earnings per Share for the quarter was Rs. 2.50, compared to Rs. 3.72 in the first quarter of 2023.

Summarized Financial Results

The operating results of the Company are summarized as follows:

Operating Results

Sales -net

Gross Profit

Profit before Tax

Less: Tax Expense

Profit after Tax

Earnings per share - basic and diluted (Rs.)

Quarter ended March 31,

2024

2023

(Rs. in Million)

4,608 5,180

1,386 2,046

957 1,401

1. 59

1. 1,343

2.50 3.72

Variance

%

-11.04-32.27-31.70-8.30-32.72-32.72

PAGE05

PAKISTAN ALUMINIUM BEVERAGE CANS LIMITED 1ST QUARTERLY REPORT MARCH 31, 2024

Future Outlook

The future outlook for our company is closely tied to the economy of Pakistan, which remains uncertain due to the impact of Government policies whose effectiveness is yet to be seen. Despite efforts to control inflation, it remains high, and this has dampened domestic demand as has the reaction to unrest in the Middle East. However, we are working on growing exports to overcome the shortfall of local demand. Our company operates in a challenging environment, with rising fuel costs, government and regional issues, and increased international commodity prices putting pressure on businesses. To address these challenges, we are being proactive and adapting to changing circumstances while implementing measures to mitigate domestic economic issues and expand export markets. By doing so, we aim to improve our resilience and maintain stable operations despite uncertainty. We appreciate our stakeholders' continued support and reaffirm our commitment to navigating Pakistan's economic challenges.

Acknowledgements

We would like to express our sincere gratitude to our shareholders, customers, employees, vendors, lenders, and all other stakeholders who have demonstrated unwavering dedication, support, and trust in our Company. Your contributions have been invaluable, and we appreciate your commitment to our success.

On behalf of the Board of Directors

Chief Executive Officer

Director

30th April 2024

PAGE06

PAKISTAN ALUMINIUM BEVERAGE CANS LIMITED 1ST QUARTERLY REPORT MARCH 31, 2024

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)

AS AT MARCH 31, 2024

Un-audited

March 31,

Note 2024

Audited

December 31,

2023

	--------- Rupees ---------
EQUITY AND LIABILITIES
Share Capital and Reserves
Authorised capital
400,000,000 (December 31, 2023: 400,000,000)
ordinary shares of Rs 10 each	4,000,000,000		4,000,000,000
Issued, subscribed and paid up share capital	3,611,082,540		3,611,082,540
Capital reserve - share premium	810,040,795		810,040,795
Revenue reserve - accumulated profit	7,117,618,619		6,214,333,730
	11,538,741,954		10,635,457,065
Non-current liabilities

Long term loans - secured Deferred tax liability

Current liabilities

1,382,195,109

763,772,327

2,145,967,436

1,425,108,499

763,772,327

2,188,880,826

Trade and other payables

Short-term borrowings - secured

Accrued finance cost

Unclaimed dividend

Current portion of non-current liabilities

Contingencies and commitments

4

3,028,550,584

5,652,160,435

194,373,146

649,323

371,383,984

9,247,117,472

-

22,931,826,863

3,049,405,660

4,978,451,876

183,309,491

649,323

421,316,590

8,633,132,942

-

21,457,470,832

Chief Executive Officer	Chief Financial Officer	Director
		PAGE07

PAKISTAN ALUMINIUM BEVERAGE CANS LIMITED 1ST QUARTERLY REPORT MARCH 31, 2024

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)

AS AT MARCH 31, 2024

Un-audited

March 31,

Note 2024

Audited

December 31,

2023

		--------- Rupees ---------
ASSETS
Non-current assets
Property, plant and equipment	5	7,563,499,181		7,584,662,599
Long term investment		99,960,000		99,960,000
Long term deposits		2,876,120		2,876,120
		7,666,335,301		7,687,498,719

Current assets

Stores and spares Stock in trade Trade debts

Advances, deposits, prepayments and other receivables Accrued income

Income tax refundable Short-term investments Cash and bank balances

645,363,319

5,110,652,422

1,138,374,060

234,738,102

144,638,426

4,694,581

4,266,469,985

3,720,560,667

15,265,491,562

634,416,280

5,913,343,547

456,763,812

175,005,711

41,482,813

57,470,708

4,512,125,138

1,979,364,101

13,769,972,113

22,931,826,863 21,457,470,832

The annexed notes 1 to 9 form an integral part of these condensed interim financial statements.

Chief Executive Officer	Chief Financial Officer	Director
PAGE08

PAKISTAN ALUMINIUM BEVERAGE CANS LIMITED 1ST QUARTERLY REPORT MARCH 31, 2024

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2024
		Three Months Ended
		March 31,	March 31,
	Note	2024		2023
		--------- Rupees ---------
Sales	6	4,608,134,411		5,179,837,533
Cost of sales		(3,222,568,638)		(3,134,176,923)
Gross profit		1,385,565,773		2,045,660,610
Administrative expenses		(236,463,223)		(131,475,998)
Selling and distribution expenses		(83,956,189)		(100,461,897)
Other operating incomes		264,624,325		14,747,636
Other operating expenses		(119,553,256)		(269,840,245)
Finance costs		(253,056,337)		(157,222,466)
Profit before taxation		957,161,093		1,401,407,640
Taxation		(53,876,204)		(58,755,164)
Profit for the period		903,284,889		1,342,652,476
Earnings per share - basic and diluted (Rupees)		2.50		3.72

The annexed notes 1 to 9 form an integral part of these condensed interim financial statements.

Chief Executive Officer	Chief Financial Officer	Director
		PAGE09

PAKISTAN ALUMINIUM BEVERAGE CANS LIMITED 1ST QUARTERLY REPORT MARCH 31, 2024

CONDENSED INTERIM STATEMENT OF

COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2024
	Three Months Ended
	March 31,	March 31,
Note	2024	2023

--------- Rupees ---------

Profit for the period

Other comprehensive income:

Items that may be reclassified subsequently to profit or loss Items that will not be reclassified subsequently to profit or loss

903,284,889

-

-

1,342,652,476

-

-

Total comprehensive income for the period	903,284,889		1,342,652,476

The annexed notes 1 to 9 form an integral part of these condensed interim financial statements.

Chief Executive Officer	Chief Financial Officer	Director
PAGE10