AGP : Transmission of Quarterly Financial Statements for the period ended September 30, 2023

Board of Directors

Mr. Tariq Moinuddin Khan - Chairman

Ms. Nusrat Munshi - Managing Director and Chief Executive Ocer

Mr. Zafar Iqbal Sobani - Independent Director

Mr. Shauzab Ali - Independent Director

Mr. Kamran Nishat - Non - Executive Director

Mr. Muhammad Kamran Nasir - Non - Executive Director

Mr. Mahmud Yar Hiraj - Non - Executive Director

Mr. Muhammad Kamran Mirza - Non - Executive Director

Human Resource and Remuneration Commiee

Mr. Shauzab Ali - Chairman

Mr. Kamran Nishat - Member

Mr. Muhammad Kamran Nasir - Member

Ms. Nusrat Munshi - Member

Mr. Mahmud Yar Hiraj - Member

Mr. Muhammad Kamran Mirza - Member

Board Audit Commiee

Mr. Zafar Iqbal Sobani-Chairman

Mr. Kamran Nishat - Member

Mr. Muhammad Kamran Nasir - Member

Mr. Mahmud Yar Hiraj - Member

Mr. Muhammad Kamran Mirza - Member

Bankers

Allied Bank Limited

Bank Al Habib Limited

Bank Alfalah Limted

Bank Islami Pakistan Limited

Dubai Islamic Bank

Faysal Bank Limited

Habib Bank Limited

Board Strategy Commiee

Mr. Kamran Nishat - Chairman

Mr. Muhammad Kamran Nasir - Member

Ms. Nusrat Munshi - Member

Mr. Mahmud Yar Hiraj - Member

Mr. Muhammad Kamran Mirza - Member

Chief Financial Ocer

Mr. Junaid Aslam

Head of Internal Audit

Syed Shah Hussain Qadri

Company Secretary

Mr. Umair Mukhtar

Habib Metropolitan Bank Limited IS Bank Limited

MCB Islamic Bank Limited

MCB Limited

Mezan Bank Limited

National Bank of Pakistan

The Bank of Punjab

ASCEND

3RD QUARTERLY REPORT SEPTEMBER 2023

Directors' Review to the Members

On behalf of the Board of Directors, we are pleased to present the Company's standalone and consolidated condensed financial statements for the nine (9) months ended September 30, 2023.

Operating Results of the Company

The revenue of the Company is recorded at PKR 9.8 billion with a phenomenal growth of 35% over the same period last year. The continued penetration of our leading brands in the domestic market registered an increase of 27%, and sales to Afghanistan have grown by 42%. However, the encouraging growth in revenue could not be fully translated to the gross margins mainly due to massive devaluation of local currency and significant rise in cost of production and operations.

Marketing and Selling expenses increased in line with the sales growth of the Company. The management effectively contained administrative expenses despite substantial increase in volume and cost of doing business. Other expenses have increased mainly due to exchange loss on account of PKR devaluation. Other income has increased mainly because of dividend received from the subsidiary Company, OBS AGP (Private) Limited. Finance cost remained high because of long-term financing obtained for equity investment in the subsidiary company, OBS Pakistan (Private) Limited. Resultantly, despite tough economic environment, the Company managed to record an encouraging net profit of PKR 852 million, resulting in earnings per share of PKR 3.04.

The performance of the subsidiaries has been promising during the period under review with OBS AGP (Private) Limited achieving a topline of PKR 3.3 billion with a gross profit of PKR 1.7 billion and a net profit of PKR 240 million and OBS Pakistan (Private) Limited attaining a topline of PKR 1.1 billion with a gross profit of PKR 679 million and a net profit of PKR 231 million.

The consolidated topline performance has achieved new heights of PKR 13 billion for the nine (9) months ended September 30, 2023. With this encouraging sales momentum, the consolidated gross profit and net profit reached at PKR 6.7 billion and PKR 1.1 billion respectively. The consolidated net profit attributable to the Company stood at PKR 973 million, resulting in earnings per share of PKR 3.47.

Strategic Outlook

During the period under review, the economic adversaries such as currency devaluation of more than 40% and a rise in inflation by almost 32%, have adversely impacted the business environment of the country. However, over the last few weeks, some stability is observed in macroeconomic factors particularly appreciation of the local currency. General inflation may also rebound with the decrease in fuel prices. This upturn is anticipated to signify a restored business confidence.

Going forward, economic environment is expected to remain challenging and accordingly, we will remain abundantly cautious to the evolving circumstances. AGP will make endeavors to continue increasing our

market share across various therapeutic classes through proficient marketing strategies and efficient resource allocation. The Company is expected to remain resolute in preserving its competitive market position on the back of its robust portfolio and achieve economies of scale through launches of new products, line extensions and internalization of certain brands newly acquired via its subsidiary companies.

Awards and Achievements

Pleased to announce that AGP has secured 2nd position in the pharmaceutical category of the Best Corporate Report Awards arranged by ICAP and ICMAP for the year 2022. The consistency of recognition amongst top 3 players for the past 4 years goes on to prove Company's strong governance, adoption of best corporate practices, and transparent disclosure of information. The Company also achieved the 3rd position in the "Best Place to Work Awards" in the pharmaceutical industry which is an initiative by Pakistan Society of Human Resource Management organized by Engage Consulting, a leading HR Consultancy firm.

Acknowledgment

We extend our sincere appreciation to all stakeholders for their unwavering trust and support in the Company. We also extend our heartfelt gratitude to our hardworking and dedicated employees who exemplify the Company's vision and tirelessly work towards its realization, thereby contributing to the improved accessibility of quality healthcare for the society at large.

	______________________
Nusrat Munshi	Muhammad Kamran Mirza
Chief Executive Officer	Non-Executive Director

UNCONSOLIDATED

CONDENSED INTERIM

FINANCIAL STATEMENTS

(UN-AUDITED)

FOR THE QUARTER ENDED

SEPTEMBER 30, 2023

AGP LIMITED
CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
		30 September	31 December
		2 0 2 3	2 0 2 2
		(Unaudited)	(Audited)
	Note	----------(Rupees in '000)--------
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment	4	3,479,585	3,177,562
Intangible assets	5	18,217,205	8,907,053
Long-term deposits and receivables		38,517	27,158
		21,735,307	12,111,773
CURRENT ASSETS
Stores, spares and loose tools		10,005	9,207
Stock-in-trade	6	3,117,864	2,237,294
Trade debts	7	2,095,672	1,357,120
Advances	8	459,104	268,247
Trade deposits, prepayments and other receivables	9	211,646	241,105
Taxation - net		29,138	-
Short-term investments		120,000	106,000
Cash and bank balances	10	160,835	216,532
		6,204,264	4,435,505
TOTAL ASSETS		27,939,571	16,547,278
EQUITY AND LIABILITIES
Issued, subscribed and paid-up capital
Share capital		2,800,000	2,800,000
Revenue reserve - unappropriated profits		8,160,323	7,747,448
		10,960,323	10,547,448
Non-controlling interest		992,388	583,623
		11,952,711	11,131,071
NON-CURRENT LIABILITIES
Long-term financings	11	6,971,461	1,868,563
Deferred grant		1,163	591
Gas infrastructure development cess		6,947	7,405
Deferred tax liabilities - net		175,687	131,312
		7,155,258	2,007,871
CURRENT LIABILITIES
Trade and other payables	12	5,560,998	1,778,347
Unclaimed dividends		1,917	1,795
Taxation - net		-	78,444
Accrued interest		278,636	129,752
Short-term borrowings		1,886,428	689,082
Current maturity of non-current liabilities		1,103,623	730,916
		8,831,602	3,408,336
CONTINGENCIES AND COMMITMENTS	13
TOTAL EQUITY AND LIABILITIES		27,939,571	16,547,278
The annexed notes 1 to 27 form an integral part of these condensed interim financial statements.

________________________	________________________	________________________
Chief Financial Officer	Chief Executive Officer	Director