Roshan Packages : Transmission of quarterly report for period ended December 31,2022

Head Office:

325 G-III, M. A Johar Town, Lahore. Pakistan | +92 42 35290734-8 info@roshanpackages.com.pk | www.roshanpackages.com.pk

TOWARDS A CIRCULAR ECONOMY

HALF YEARLY REPORT

Directors' Report

Dear Shareholders,

The Directors of the Company are pleased to present the Directors' Report along with the condensed interim financial statements of the Company for the half year ended on December 31, 2022.

Financial Performance

The financial performance of the Company ("RPL") during the first half of the year is contained in the table below:

During the six months ended December 31, 2022, the Company achieved net sales revenue of PKR 5,187 million as compared to PKR 4,039 million in the corresponding period last year, registering an increase by 28.4%. Despite the escalang energy cost and devaluaon of currency the Company has managed to improve its gross profit to PKR 574 million as against PKR 402 million in the comparable period last year, reflecng an absolute increase of 42.6% and 110 bps improvement in gross profit margin due to improvement in sales mix and RPL's focus on efficient procurement, inventory management, and uµlising the resources effecvely.

However, the surge in general inflaon, devaluaon of Pak Rupee and high interest rates have counter balanced the aforesaid increase, keeping the profit before taxaon consistent with the last year. Freight

Directors' Report

and transportaon cost has doubled on account of increased fuel prices. The KIBOR rate has jacked up to 18%, thereby resulng in an increase of 180% in the finance cost expense. Despite the polical turmoil and economic uncertainty, the Company has managed to sustain its profitability at PKR 109 million.

Profit aer taxaon has however decreased to PKR 78 million as compared to PKR 188 million in the comparable period last year on account of net tax expense of PKR 31 million in the current period as against net deferred tax income in the comparable period, due to recogni]on of deferred tax asset on minimum and alternave taxaon.

Future Outlook:

The economy, over the years, has shown strong resilience despite unexpected volality and uncertainty. The macro-economic outlook seems challenging on account of rising inflaon, fiscal slippages and drying up of financial inflows and reserves. Moving forward, it is essenal to sustain the reform momentum and focus on policies for securing stability and promong sustainable growth.

The company is keeping a close eye on the macro-economic and fiscal challenges and focussing on strategies to counteract the supply chain disrupons arising from import and LC restric]ons. Considering the uncertainty and to ensure connuous smooth supplies to our valued corporate customers the Company is also focussed to build local substutes as a long-term future strategy which will help localizaon and economic development.

Acknowledgment:

The Board is thankful to all of its stakeholders for their invaluable connued support to the Company. The Board would also like to acknowledge the dedicaon, diligence and hard work of the Company's employees during an unprecedented me.