Empowering minds, Inspiring souls
HALF YEARLY REPORT DECEMBER 2023
Contents
02
03
06
07
08
Company Information
Directors' Review Report
Directors'
Review Report (Urdu)
Independent Auditor's
Review Report
Unconsolidated Condensed interim Statement of Financial Position
09
10
11
12
25
Unconsolidated Statement of Profit or Loss and Other Comprehensive Income
Unconsolidated Condensed interim Statement of Changes in Equity
Unconsolidated Condensed interim Statement of Cash Flows
Selected Notes to the Unconsolidated Condensed interim Financial Statements
Consolidated
Financial Statements
Company Information
BOARD OF DIRECTORS | LEGAL ADVISORS | |
Mr. Adnan Asdar Ali | Chairman | Mohsin Tayebaly & Co. |
Mr. Syed Nadeem Ahmed | Chief Executive Officer | |
Mr. Zubair Razzak Palwala | BANKERS | |
Mr. Munis Abdullah | Albaraka Bank (Pakistan) Limited | |
Ms. Faiza Naeem | Askari Bank Limited | |
Ms. Shaista Khaliq Rehman | Bank Al Habib Limited | |
Mr. Muhammad Zubair Haider Shaikh | Bank Alfalah Limited | |
Bank of Punjab | ||
Dubai Islamic Bank Pakistan Limited | ||
Faysal Bank Limited | ||
BOARD OF AUDIT COMMITTEE | Habib Bank Limited | |
Ms. Shaista Khaliq Rehman | Chairperson | Habib Metropolitan Bank Limited |
Mr. Adnan Asdar Ali | Member | Meezan Bank Limited |
Mr. Munis Abdullah | Member | National Bank of Pakistan |
Soneri Bank Limited | ||
BOARD OF HR & REMUNERATION | Summit Bank Limited | |
COMMITTEE | ||
Mr. Muhammad Zubair Haider Shaikh | Chairman | |
Mr. Adnan Asdar Ali | Member | |
Ms. Faiza Naeem | Member | |
REGISTERED OFFICE | ||
One IBL Centre, 2nd Floor, Plot # 1 | ||
CHIEF FINANCIAL OFFICER | Block 7 & 8, D.M.C.H.S, Tipu Sultan | |
Road Off Shahra-e-Faisal, Karachi | ||
Mr. Mobeen Alam | ||
COMPANY SECRETARY | ||
Mr. Zubair Razzak Palwala | SHARE REGISTRAR | |
CDC Share Registrar Services Limited | ||
Head Office, CDC House, 99-B, Block |
'B' S.M.C.H.S., Main Shahrah-e-Faisal
Karachi - 74400
AUDITORS
A. F. Ferguson & Co.
02 HALF YEARLY REPORT
Directors' Report to the Members
We are pleased to present the unconsolidated interim financial information of the company for the half year ended December 31, 2023. These financial statements have been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34 - 'Interim Financial Reporting'. The directors' report is prepared in accordance with section 227 of the Companies Act, 2017 and Chapter XII of the Listed Companies (Code of Corporate Governance) Regulations, 2019.
Financial highlights
The company experienced a significant increase in revenue, rising by Rs 2.47 billion to Rs
13.3 billion from Rs 10.8 billion, representing a substantial 23% growth compared to the same period last year. The increase in revenue was mainly driven from the price increase of 20% on non-essential medicines and 14% on essential medicines granted by the government last year in May.
Furthermore, the gross profit margin for the current period improved to 47.37%, up from 45.54% in the previous period. This enhancement was predominantly driven by the aforementioned price adjustments.
The combination of increased sales and decreased operating expenses, which stood at 31.17% in the current period compared to 32.21% previously, contributed to a 6% growth in operating profit, rising from Rs 2.1 billion to Rs 2.2 billion.
However, despite these positive indicators, the profit after tax experienced a significant decline of 59%, dropping from Rs 542.38 million to Rs 221.09 million. This decline was primarily attributed to the depreciation of the Pakistani currency and an increase in finance cost of the company.
In the preceding year, the policy rate had risen from 15% to 22% over time. In contrast, during the current period, the impact of heightened finance costs was particularly pronounced, as the policy rate remained at 22% for the entirety of the period.
Following is the summary of financial results for the half months ended December 31, 2023:
December 31, | ||
2023 | 2022 | |
(Rupees in thousand) | ||
Revenue | 13,323,051 | 10,852,586 |
Cost of sales | (7,012,404) | (5,909,993) |
Gross Profit | 6,310,647 | 4,942,593 |
Operating expenses | (4,152,341) | (3,495,871) |
Other operating expenses | (41,967) | (42,910) |
Other income | 118,608 | 699,068 |
Profit from operations | 2,234,947 | 2,102,880 |
Finance cost | (1,807,636) | (1,487,919) |
Profit before tax | 427,311 | 614,961 |
Income tax expense | (206,224) | (72,576) |
Profit after taxation | 221,087 | 542,385 |
DECEMBER 2023 03
EARNINGS PER SHARE
Basic earnings per share after taxation for the period is Rs. 0.47 (December 2022: Rs. 1.38). There is no dilution effect on the basic earnings per share of the Company, as the Company had no convertible dilutive potential ordinary shares outstanding as at December 31, 2023.
FUTURE OUTLOOK
At Searle Pharmaceuticals, we're deeply committed to societal welfare, not just market growth. With a steadfast belief in the well-being of our communities, we strive to make a positive impact beyond business metrics.
Despite prevailing socio-economic challenges, we're dedicated to expanding our market share with integrity. Our enduring commitment to ethical practices ensures that every step we take is aligned with our core values and principles.
While facing hurdles such as exchange rate volatility, inflation, and rising commodity prices, we remain resilient. Our team's perseverance and commitment to our values drive us forward, inspiring innovative solutions to overcome obstacles.
Challenges are opportunities for innovation. With determination, we'll navigate these obstacles, emerging stronger and brighter. Together, we'll shape a better future for Searle and our communities.
For and on behalf of the Board
Ahmed | Zubair Razzak Palwala |
Chief Executive Officer | Director |
Karachi: February 29, 2024 |
04 HALF YEARLY REPORT
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2024یرور� 29:چیاکر
DECEMBER 2023 05
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سر�بشتہگذسےفطرکیمحکوکہجوتھافہضاا۲۰% مںو� | کیتا�یودایروضر�ر روافہضاا 14% مںو�یکیتا�یودا | ||||||||||||||||||||||||||||||||||
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مںو� گئیکینا�یپرواجہویدا� کیفہضااسا گئیہو47.37% کرھر�سے 45.54% حشرکیفٹوپر�دگرہوعلاکےسا | |||||||||||||||||||||||||||||||||||
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نب | ٹ | ن | ی | ||||||||||||||||||||||||||||||||
ی | ی | ||||||||||||||||||||||||||||||||||
۔ایگہو� 2.2 کرھر�بسےمل 2.1 ہوروااہوفہضاا 6% م | |||||||||||||||||||||||||||||||||||
ن | ن | ن | ٹ | ||||||||||||||||||||||||||||||||
ی | |||||||||||||||||||||||||||||||||||
ب | ی | ی | |||||||||||||||||||||||||||||||||
نیکستاا�پجہویدا�کیکمیسا۔گایہومل 221.01 کہہوکمکےمل 542.38 فعمنا�زابعدکاکمپنیدجوواب�کےتہاجوومثبتنا | |||||||||||||||||||||||||||||||||||
ن | نئ | ||||||||||||||||||||||||||||||||||
�ی��چ | ش | ||||||||||||||||||||||||||||||||||
س | �� | ی | |||||||||||||||||||||||||||||||||
یج | ل | ||||||||||||||||||||||||||||||||||
ق | ۔تھافہضاام� | فارواکمیمرقدکیپےور | |||||||||||||||||||||||||||||||||
ٹ | |||||||||||||||||||||||||||||||||||
۔ہیررار�ر�بپر 22% دسوحشرلساسالبتہا۔تھیگئیہو22% کرھر�بسے15% دسوحشرلساپچھلے | |||||||||||||||||||||||||||||||||||
ہ | ی | ن | م | ||||||||||||||||||||||||||||||||
��ہ | نےہوختمکو2023 سمبرد 31 | ||||||||||||||||||||||||||||||||||
:�یبقمطاکے�ذجردئجنتاتیایلمالئےکےتمدکییںوچھلےاو� | |||||||||||||||||||||||||||||||||||
2022 | ن | 2023 | |||||||||||||||||||||||||||||||||
ی | ہ | ||||||||||||||||||||||||||||||||||
(م ںورار� پےور نیکستااپ�) | |||||||||||||||||||||||||||||||||||
10,852,586 | 13,323,051 | نیمدٓا | |||||||||||||||||||||||||||||||||
خ | خ ف | ||||||||||||||||||||||||||||||||||
(5,909,993) | (7,012,404) | تجاار�ا کے �ور� | |||||||||||||||||||||||||||||||||
ت | |||||||||||||||||||||||||||||||||||
4,942,593 | 6,310,647 | نیمدٓا عیمجمو | |||||||||||||||||||||||||||||||||
تجاار�ا �یپرٓا | |||||||||||||||||||||||||||||||||||
(3,495,871) | (4,152,341) | خ | نٹ | ||||||||||||||||||||||||||||||||
تجاار�ا �یپرٓا�رد | |||||||||||||||||||||||||||||||||||
(42,910) | (41,967) | خ | نٹ | ی | |||||||||||||||||||||||||||||||
نیمدٓا�رد | |||||||||||||||||||||||||||||||||||
699,068 | 118,608 | ی | |||||||||||||||||||||||||||||||||
نش | |||||||||||||||||||||||||||||||||||
2,102,880 | 2,234,947 | نیمدٓا سے�رپرٓا | |||||||||||||||||||||||||||||||||
نی | |||||||||||||||||||||||||||||||||||
خ | |||||||||||||||||||||||||||||||||||
(1,487,919) | (1,807,636) | تجاار�ا تیایلما | |||||||||||||||||||||||||||||||||
ٹ | |||||||||||||||||||||||||||||||||||
� زا قبل فعمنا | |||||||||||||||||||||||||||||||||||
614,961 | 427,311 | ی | ٹ | ||||||||||||||||||||||||||||||||
تجاار�ا | |||||||||||||||||||||||||||||||||||
� نکما | |||||||||||||||||||||||||||||||||||
(72,576) | (206,224) | خ | ی | ||||||||||||||||||||||||||||||||
ٹ | |||||||||||||||||||||||||||||||||||
� زا بعد فعمنا | |||||||||||||||||||||||||||||||||||
542,385 | 221,087 | ی |
06 HALF YEARLY REPORT
INDEPENDENT AUDITOR'S REVIEW REPORT
TO THE MEMBERS OF THE SEARLE COMPANY LIMITED
Report on review of Unconsolidated Condensed Interim Financial Statements
Introduction
We have reviewed the accompanying unconsolidated condensed interim statement of financial position of The Searle Company Limited as at December 31, 2023 and the related unconsolidated condensed interim statement of profit or loss and other comprehensive income, the unconsolidated condensed interim statement of changes in equity, and unconsolidated condensed interim statement of cash flows, and notes to the unconsolidated condensed interim financial statements for the half year then ended (here-in-after referred to as the "unconsolidated condensed interim financial statements"). Management is responsible for the preparation and presentation of these unconsolidated condensed interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these unconsolidated condensed interim financial statements based on our review.
The figures of the unconsolidated condensed interim statement of profit or loss and other comprehensive income for the quarters ended December 31, 2023 and December 31, 2022 have not been reviewed, as we are required to review only the cumulative figures for the half year ended December 31, 2023.
Scope of Review
We conducted our review in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity".
A review of unconsolidated condensed interim financial | statements consists | of making inquiries, |
primarily of persons responsible for financial and accounting | matters, and applying | analytical and other |
review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying unconsolidated condensed interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.
The engagement partner on the audit resulting in this independent auditor's report is Syed Muhammad Hasnain.
A. F. Ferguson & Co.,
Chartered Accountants
Karachi
Date: February 29, 2024
UDIN: RR2023100738pHDJe5Cy
A. F. FERGUSON & CO., Chartered Accountants, a member firm of the PwC network State Life Building No. 1-C, I.I. Chundrigar Road, P.O. Box 4716, Karachi-74000, Pakistan
Tel: +92 (21) 32426682-6/32426711-5; Fax: +92 (21) 32415007/32427938/32424740;KARACHI LAHORE ISLAMABAD
DECEMBER 2023 07
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
As at December 31, 2023 | (Un-audited) | (Audited) | |
December 31, | June 30, | ||
ASSETS | 2023 | 2023 | |
Note | (Rupees in '000) |
Non-current assets
Property, plant and equipment | 5 |
Investment properties - at cost | |
Intangible assets | |
Long-term investments - subsidiaries | 6 |
Long-term loans | |
Long-term deposits | |
Current assets | |
Stock-in-trade | |
Trade receivables | 7 |
Loans and advances | 8 |
Trade deposits and short-term prepayments | |
Other receivables | 9 |
Short-term investment - at amortised cost | |
Taxation - payments less provision | |
Tax refunds due from Government - Sales Tax | |
Cash and bank balances | |
Total current assets | |
Total assets | |
EQUITY AND LIABILITIES | |
EQUITY | |
Share capital | |
Issued, subscribed and paid-up capital | 10 |
Capital reserves | |
Share premium | |
Revaluation surplus on property, plant and equipment | |
Revenue reserves | |
General reserve | |
Unappropriated profit | |
LIABILITIES | |
Non-current liabilities | |
Long-term borrowings | 11 |
Deferred tax liabilities | |
Employee benefit obligations | |
Lease liability | |
Current liabilities | |
Trade and other payables | 12 |
Short-term borrowings | 13 |
Current portion of long-term borrowings | 11 |
Unpaid dividend | 14 |
Unclaimed dividend | |
Accrued mark-up | |
Current portion of lease liability | |
Total liabilities | |
Contingencies and commitments | 15 |
Total equity and liabilities |
6,470,453
2,894,861
33,080
26,066,718
174
7,396
35,472,682
2,317,896
10,324,835
1,260,847
171,074
900,604
100,000
2,168,206
202,330
1,760,009
19,205,801
54,678,483
5,114,945
9,085,133
3,634,750
280,251
13,984,019
32,099,098
4,707,312
430,228
55,352
75,620
5,268,512
5,875,099
8,633,189
2,088,300
183,472
37,040
484,373
9,400
17,310,873
22,579,385
54,678,483
6,604,610
2,864,868
40,399
18,816,311
117
7,396
28,333,701
2,716,235
11,570,051
1,071,375
156,539
4,524,797
100,000
1,934,114
196,712
196,782
22,466,605
50,800,306
3,900,659
6,049,419
3,717,069
280,251
13,721,361
27,668,759
5,917,063
238,725
57,567
78,702
6,292,057
6,042,397
8,178,277
1,914,275
183,736
37,526
476,651
6,628
16,839,490
23,131,547
50,800,306
The annexed notes from 1 to 27 form an integral part of these unconsolidated condensed interim financial statements.
Chief | Director | Chief Financial Officer |
08 | YEARLY REPORT |
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Searle Company Ltd. published this content on 04 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 10:00:07 UTC.