Colgate Palmolive Pakistan : TRANSMISSION OF QUARTERLY REPORT FOR THE QUARTER ENDED 30 SEPTEMBER 2023

FIRST QUARTER REPORT

JULY - SEPTEMBER 2023

CONTENTS

Page

COMPANY INFORMATION	2
DIRECTORS' REVIEW	3-4
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION	5
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME	6
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY	7
CONDENSED INTERIM STATEMENT OF CASH FLOWS	8
NOTES TO AND FORMING PART OF THE CONDENSED
INTERIM FINANCIAL STATEMENTS	9-18
DIRECTORS' REVIEW - IN URDU	19-20

First Quarter Report 2023-2401

COMPANY INFORMATION

BOARD OF DIRECTORS	EXTERNAL AUDITORS
Iqbal Ali Lakhani - Chairman	A. F. Ferguson & Co.
Amin Mohammed Lakhani	Chartered Accountants
Kamran Yousuf Mirza
Syed Shahid Ali Bukhari	INTERNAL AUDITORS
Danish Zuberi	BDO Ebrahim & Co.
Peter John Graylin	Chartered Accountants
Xuan Dai
Zulfiqar Ali Lakhani - Chief Executive	SHARES REGISTRAR
	FAMCO Associates (Private) Limited
ADVISOR	8-F, Near Hotel Faran, Nursery, Block-6,
Sultan Ali Lakhani	P.E.C.H.S., Shahra-e-Faisal, Karachi.
AUDIT COMMITTEE	REGISTERED OFFICE
Kamran Yousuf Mirza - Chairman	Lakson Square, Building No. 2,
Iqbal Ali Lakhani	Sarwar Shaheed Road,
Amin Mohammed Lakhani	Karachi-74200 Pakistan
Danish Zuberi
HUMAN RESOURCE &	FACTORIES
REMUNERATION COMMITTEE	G-6, S.I.T.E., Kotri
Kamran Yousuf Mirza - Chairman	District Jamshoro (Sindh)
Iqbal Ali Lakhani
Zulfiqar Ali Lakhani	H-36 (B), S.I.T.E., Kotri
Syed Shahid Ali Bukhari	District Jamshoro (Sindh)
CHIEF FINANCIAL OFFICER	217, Sundar Industrial Estate,
Mudassir Iqbal	Raiwind Road, Lahore
COMPANY SECRETARY	WEBSITE
Mansoor Ahmed	www.colgate.com.pk

02 First Quarter Report 2023-24

DIRECTORS' REVIEW

The directors of your Company are pleased to present the un-audited, condensed financial statements of the Company for the quarter ended September 30, 2023.

Financial Performance at a Glance

A brief financial analysis of the Company's performance for the quarter is summarized below:

	July- September	July- September	Increase /
Operating Results	2023	2022
(Decrease)
	Amount in PKR million
Turnover	36,494	25,506	43.08%
Net Turnover	27,683	19,507	41.91%
Gross Profit	8,387	4,756	76.35%
Gross Profit %	30.30%	24.38%	592 BPS
Selling & Distribution Cost	2,735	2,068	32.25%
Administrative Expenses	251	209	20.10%
Profit from Operations	6,048	2,617	131.10%
Profit After Tax	3,701	1,718	115.56%
Earnings per Share - Rupees	15.24	7.07	115.56%

Financial Performance Highlights

Net turnover of the Company grew by 42% on the back of volume gains, selling price adjustments and favorable pack mix changes. The improvement in the gross profit margin is attributed mainly due to the reduction in the material cost supported by relatively stabilized exchange rate and internal cost efficiencies.

Selling and distribution costs increased due to the continued investment in advertising and brand building activities.

Business Performance Highlights

Colgate launched its flagship 'Oral Health Month' drive, an intensive month-long oral health awareness campaign aimed at establishing and promoting the importance of good oral hygiene and regular dental check-ups. With the theme of 'Keep Pakistan Smiling,' the drive focused on spreading awareness amongst the masses about common oral health problems and how to prevent them.

First Quarter Report 2023-2403

Leveraging the momentum of the season, both Palmolive shampoo and soap continue to grow. The launch of Palmolive Naturals soap's new campaign successfully promoted the key benefit of soft and glowing skin. Focus on media and in-store activations have significantly bolstered the brands' presence in the competitive skin and hair care segments.

To gain market share, the detergent category continues to witness a high level of advertising and trade spend. In the dish care category, Lemon Max maintains its leading position.

Future Outlook

Pakistan's economy exhibited partial stability post approval of International Monetary Fund (IMF) standby arrangement program, unlocking new external financing while averting a balance of payment crisis. A marginal easing of import restrictions coupled with the appreciation of the local currency is expected to facilitate a modest recovery, however, structural challenges remain to be addressed. Issues including political instability, tighter monetary policy, ongoing inflationary pressure and decreasing consumer purchasing power could have an impact on future performance of the company. Furthermore, the escalating conflict in the Middle East could lead to an increase in oil and freight costs.

Acknowledgement

We would like to extend our sincere gratitude to our consumers for their trust in our brands. We are thankful to our customers, distributors, supply chain partners, bankers and shareholders for their continued support. We also appreciate our employees for their relentless dedication and immense contribution to the Company.

On behalf of Board of Directors

Iqbal Ali Lakhani	Zulfiqar Ali Lakhani
Chairman	Chief Executive
Karachi : October 27, 2023

04 First Quarter Report 2023-24

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As at September 30, 2023

Note

ASSETS

NON-CURRENT ASSETS

September 30,	June 30,
2023	2023
(unaudited)	(audited)

(Rupees in '000)

Property, plant and equipment	4
Intangible assets
Long term loans
Long term security deposits
CURRENT ASSETS
Stores and spares
Stock in trade	5
Trade debts
Loans and advances
Trade deposits and short term prepayments
Other receivables
Accrued profit
Short term investments	6
Cash and bank balances
TOTAL ASSETS
EQUITY AND LIABILITIES
CAPITAL AND RESERVES
Authorised share capital
Issued, subscribed and paid-up share capital	7
Reserves
Remeasurement of post retirement benefits obligation
LIABILITIES
NON-CURRENT LIABILITIES
Deferred taxation
Long term deposits
Deferred liability
Long-term financing	8
Deferred grant
Lease liabilities
CURRENT LIABILITIES
Trade and other payables	9
Accrued mark-up
Current maturity of long-term financing
Current maturity of lease liabilities
Taxation - net
Unpaid dividend	10
Unclaimed dividend
TOTAL LIABILITIES
CONTINGENCIES AND COMMITMENTS	11

8,019,097

6,405

85,447

22,452

8,133,401

791,364

15,605,698

2,189,982

356,651

133,529

2,475,755

60,848

17,608,777

5,002,939

44,225,543

52,358,944

2,500,000

2,427,733

25,864,944

(275,285)

28,017,392

434,900

51,982

137,186

671,823

287,094

281,783

1,864,768

17,414,111

7,030

130,333

61,113

2,861,634

1,966,693

35,870

22,476,784

24,341,552

7,836,920

7,198

76,180

21,260

7,941,558

701,919

15,356,715

2,017,453

459,913

171,500

1,013,343

29,639

14,262,005

5,492,509

39,504,996

47,446,554

2,500,000

2,427,733

22,164,400

(275,285)

24,316,848

392,697

51,264

191,865

702,580

291,488

290,452

1,920,346

16,494,293

7,056

109,465

66,001

1,684,759

2,811,659

36,127

21,209,360

23,129,706

TOTAL EQUITY AND LIABILITIES

52,358,944

47,446,554

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

Iqbal Ali Lakhani	Zulfiqar Ali Lakhani	Mudassir Iqbal
Chairman/Director	Chief Executive	Chief Financial Officer

First Quarter Report 2023-2405

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (Unaudited)

For the Quarter ended September 30, 2023

Note Quarter ended Quarter ended September 30, September 30,

20232022 (Rupees in '000)

Turnover

Sales tax

Trade and other discounts

Net turnover

Cost of sales

Gross profit

Selling and distribution cost

Administrative expenses

Other expenses

Other income

Profit from operations

Finance cost and bank charges

Profit before taxation

Taxation

• Current - for the quarter
• • for prior year
• Deferred

Profit after taxation

Other comprehensive income for the quarter

Total comprehensive income for the quarter

Earnings per share - basic and diluted

12

36,494,361	25,505,771
(6,043,442)	(4,002,929)
(2,767,853)	(1,996,069)
27,683,066	19,506,773
(19,296,190)	(14,750,862)
8,386,876	4,755,911
(2,735,210)	(2,068,352)
(250,785)	(209,409)
(450,096)	(213,501)
	1,097,568			352,546
6,048,353	2,617,195
	(38,626)			(36,642)
6,009,727	2,580,553
	(2,255,835)		(834,967)
		(11,145)			-
	(2,266,980)		(834,967)
	(42,203)		(28,064)
(2,309,183)		(863,031)
3,700,544		1,717,522
-	-
3,700,544	1,717,522
		------------(Rupees)------------
								(Restated)

15.247.07

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

Iqbal Ali Lakhani	Zulfiqar Ali Lakhani	Mudassir Iqbal
Chairman/Director	Chief Executive	Chief Financial Officer

06 First Quarter Report 2023-24

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (Unaudited)

For the Quarter ended September 30, 2023

Issued,

Reserves

Remeasurement

subscribed

Capital

on post retire-

Revenue reserves

Sub

Total

and paid up

ment benefits

reserve-

General

Unappro-

Total-

Equity

share capital

share

obligation- net

reserve

priated

reserves

premium

profit

of tax

Balance as at July 1, 2022

(Rupees in '000)

727,956

13,456

17,920,000

4,088,766)

22,022,222)

(201,936) 22,548,242

Transactions with owners

Final dividend for the year ended June 30, 2022 at the rate of Rs 28 per share

Bonus shares issued at the rate of three shares for every twenty shares held

Total transactions with owners

Comprehensive income for the quarter

-

109,193

109,193

-

-

-

-		(2,038,276)		(2,038,276)
-		(109,193)		(109,193)
-		(2,147,469)	(2,147,469)

• (2,038,276)
• -
• (2,038,276)

Profit after taxation for the quarter ended September 30, 2022

Other comprehensive income

Total comprehensive income for the quarter ended September 30, 2022

Transfer to general reserve Balance as at September 30, 2022

Balance as at July 1, 2023

Comprehensive income for the quarter

-

-

-

-

837,149

2,427,733

-

-

-

-

13,456

13,456

-		1,717,522)		1,717,522)		-		1,717,522)
-		-		-		-		-
-		1,717,522)	1,717,522)	-	1,717,522)
1,941,000		(1,941,000)	-	-	-
19,861,000		1,717,819)	21,592,275)		(201,936)	22,227,488)
19,861,000		2,289,944)	22,164,400)	(275,285)	24,316,848)

Profit after taxation for the quarter ended September 30, 2023

Other comprehensive income

Total comprehensive income for the quarter ended September 30, 2023

Transfer to general reserve

-

-

-

-

-

-

-

-

-		3,700,544)		3,700,544)
-		-		-

• 3,700,544) 3,700,544)

1,057,000		(1,057,000)	-

-

-

-

-

3,700,544)

-

3,700,544)

-

Balance as at September 30, 2023

2,427,733

13,456

20,918,000 4,933,488) 25,864,944) (275,285) 28,017,392)

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

Iqbal Ali Lakhani	Zulfiqar Ali Lakhani	Mudassir Iqbal
Chairman/Director	Chief Executive	Chief Financial Officer

First Quarter Report 2023-2407

CONDENSED INTERIM STATEMENT OF CASH FLOWS (Unaudited )

For the Quarter ended September 30, 2023

Note Quarter ended Quarter ended September 30, September 30,

20232022 (Rupees in '000)

CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations	13

Finance cost and bank charges paid

Taxes paid

Staff retirement benefit paid

Long term loans

Long term security deposits (assets)

Long term deposits

Net cash generated from operating activities

CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment Purchase of intangible assets

Short term investments made during the quarter Proceeds from sale of property, plant and equipment Profit received on savings accounts

Profit received on treasury bills

Profit received on term deposit receipts

Sale proceeds on disposal of short term investments Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES Dividend paid

Long-term financing repaid

Short-term financing repaid

Payment of lease liabilities

Net cash used in financing activities

Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the quarter Cash and cash equivalents at the end of the quarter 14

4,972,868

(28,022)

(1,090,106)

(80,000)

(9,267)

(1,192)

718

3,764,999

(431,588)

(190)

(4,217,346)

7,961

158,984

590

42,626

1,068,087

(3,370,876)

(845,223)

(14,283)

-

(24,187)

(883,693)

(489,570)

5,492,509

5,002,939

2,390,336

(23,683)

(709,204)

(76,106)

1,547

(194)

(2,130)

1,580,566

(319,614)

(4,976)

(7,637,621)

18,583

75,529

406

3,369

7,808,196

(56,128)

(5)

(126,621)

(42,334)

(15,942)

(184,902)

1,339,536

2,978,308

4,317,844

The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.

Iqbal Ali Lakhani	Zulfiqar Ali Lakhani	Mudassir Iqbal
Chairman/Director	Chief Executive	Chief Financial Officer

08 First Quarter Report 2023-24

NOTES TO AND FORMING PART OF THE

CONDENSED INTERIM FINANCIAL STATEMENTS (Unaudited)

For the Quarter ended September 30, 2023

1. THE COMPANY AND ITS OPERATIONS
   Colgate-Palmolive (Pakistan) Limited (the Company) was initially incorporated in Pakistan on December 5, 1977 as a public limited company with the name of National Detergents Limited. The name of the Company was changed to Colgate-Palmolive (Pakistan) Limited on March 28, 1990 when the Company entered into a Participation Agreement with Colgate-Palmolive Company, USA. The Company is listed on Pakistan Stock Exchange. The registered office of the Company is situated at Lakson Square, Building No. 2, Sarwar Shaheed Road, Karachi, Pakistan.
   The Company is mainly engaged in the manufacture and sale of detergents, personal care and other related products.
2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

2.1 Statement of compliance

These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting which comprise of International Accounting Standard (IAS) 34 'Interim Financial Reporting' issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017 (the Act) and provisions of and directives issued under the Act.

Where the provisions of and directives issued under the Act differ with the requirements of IAS 34, the provisions of and directives issued under the Act have been followed.

1. These condensed interim financial statements do not include all the information and disclosures required in an annual audited financial statements, and should be read in conjunction with the Company's annual audited financial statements for the year ended June 30, 2023.
2. New standards, amendments to approved accounting standards and new interpretations

2.3.1 Amendments to approved accounting standards which are effective during the year ending June 30, 2024

There are certain amendments to approved accounting standards which are mandatory for accounting periods beginning on or after July 1, 2023 but are considered not to be relevant or have any significant effect on the Company's financial reporting.

First Quarter Report 2023-2409