Packages : Financial Results for the Quarter Ended 31 March 2022

FORM -7

Sec/56/PKGS

April 28, 2022

The General Manager

Pakistan Stock Exchange Limited Stock Exchange Building

Stock Exchange Road Karachi

SUB: FINANCIAL RESULTS FOR THE QUARTER ENDED 31 MARCH 2022

Dear Sir,

We are pleased to inform you that the Board of Directors of Packages Limited ("the Company") in its meeting held on Wednesday, 27 April 2022 at 11:00 a.m. at Registered Office of the Company situated at 4th Floor, The Forum, Suite No. 416-422, G-20, Block 9, Khayaban-e-Jami, Clifton, Karachi and via Zoom has approved the condensed interim standalone and consolidated financial statements (unaudited) of the Company for the quarter and three months period ended 31 March 2022 and recommended the following:

(i)	CASH DIVIDEND:	NIL
(ii)	BONUS SHARES:	NIL
(iii)	RIGHT SHARES:	NIL
(iv)	ANY OTHER ENTITLEMENT/CORPORATE ACTION:	NIL
(v)	ANY OTHER PRICE SENSITIVE INFORMATION:	Please refer below

The financial results of the Company for the captioned quarter are enclosed as Annexure-'A' (Unconsolidated) and Annexure 'B' (Consolidated).

Material Information

In accordance with Section 96 and 131 of the Securities Act, 2015 and Clause 5.6.1 of the Rule Book issued by the Pakistan Stock Exchange Limited, we hereby convey that the Board of Directors of the Company in the aforementioned meeting has accorded its approval for:

• a) Proposed investment in Sanofi-Aventis Pakistan Limited (Annexure - 'C')

• b) Incorporation of a wholly owned foreign subsidiary in the UAE (Annexure - 'D')

• c) Capital injection in StarchPack (Private) Limited (Annexure - 'E')

The quarterly report of the Company for the quarter ended 31 March 2022 will be transmitted through PUCARS separately, within the specified time and shall also be made available on Company's websitewww.packages.com.pk

Yours sincerely,

For Packages Limited

Iqra Sajjad Company Secretary

Encl: as above

CC:

Director

Company Law Division Securities and Exchange Commission of Pakistan NIC Building, Jinnah Avenue Blue Area, IslamabadExecutive Director/HOD Offsite-II Department Supervision Division Securities & Exchange Commission of Pakistan

63, NIC Building, Jinnah Avenue Blue Area

Islamabad

Director

Enforcement Department Securities and Exchange Commission of Pakistan NIC Building, Jinnah Avenue Blue Area, Islamabad

Director

Securities Market Division Securities and Exchange Commission of Pakistan NIC Building, Jinnah Avenue Blue Area, Islamabad

PACKAGES LIMITED

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

For the three-months period ended March 31, 2022

Annexure -'A'

Annexure - A

Three months ended

March 31,	March 31,
2022	2021
Un-audited	Un-audited

(Rupees in thousand)

Dividend income	875,717	782,429
Rental income	110,925	97,662
Operating revenue	986,642	880,091
Administrative expenses	(160,901)	(131,809)
Net (impairment) / reversal of impairment on financial assets	(1,771)	2,129
Other expenses	(769)	(28,195)
Other income	43,038	37,190
Operating profit	866,239	759,406
Finance cost	(152,667)	(38,367)
Profit before taxation	713,572	721,039
Taxation	(31,000)	(24,513)
Profit for the period	682,572	696,526
Earnings per share
7.64	7.79
7.28	7.42

Basic Diluted

Rupees Rupees

PACKAGES LIMITED AND ITS SUBSIDIARIES

Annexure -'B'

Annexure - B

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

For the three-months period ended March 31, 2022

Three month periTohdrened-medonth period endedMarch 31, 2022

March 31, 2021

(Rupees in thousand)

Revenue	26,915,391	19,676,647
Cost of sales and services	(21,231,585)	(15,421,447)
Gross profit	5,683,806	4,255,200
Administrative expenses	(810,668)	(649,046)
Distribution and marketing costs	(1,049,750)	(780,848)
(Impairment losses) / reversal of impairment losses
on financial assets	(15,249)	1,828
Other expenses	(341,020)	(8,747)
Other income	158,454	85,939
Share of net profit of associates and joint ventures
accounted for using equity method	36,388	21,080
Profit from operations	3,661,961	2,925,406
Finance costs	(1,060,663)	(645,050)
Gains and losses relating to business combination	1,993,632	-
Profit before taxation	4,594,930	2,280,356
Taxation	(751,902)	(557,353)
Profit for the period	3,843,028	1,723,003
Profit attributable to:
Equity holders of the Parent Company	3,670,165	1,643,769
Non-controlling interests	172,863	79,234
3,843,028	1,723,003
Earnings per share attributable to equity holders
of the Parent Company during the period
41.06	18.39
38.01	17.24

Basic Diluted

Rupees Rupees

Annexure - 'C'

DISCLOSURE FORM

INTERMS OF SECTIONS 96 AND 131 OF THE SECURITIES ACT, 2015

Name of Company	Packages Limited
Date of Report	28 April 2022
Name of Company as specified in the	Packages Limited
Memorandum
Company's Registered Office	4th Floor, The Forum
Suite # 416-422, G-20, Block 9
Khayaban-e-Jami, Clifton
Karachi-75600
Contact Information	Tel: [phone]

Disclosure of material information by listed company in terms of Section 96 and 131:

Proposed Investment in Sanofi-Aventis Pakistan Limited (Sanofi Pakistan)

This is in continuation of our earlier letter SEC/169/2021 dated December 20, 2021 in which the Board of Directors of Packages Limited (the Company) accorded its in-principle approval to become part of the Investor Consortium to evaluate and conduct a due diligence for a potential transaction for the purchase of entire 52.87% shareholding of Sanofi Foreign Participants B.V. held in Sanofi Pakistan (Proposed Transaction). The Investor Consortium is comprised of the Company, IGI Investments (Private) Limited and affiliates of Arshad Ali Gohar Group. The Investor Consortium is led by the Company.

In this regard, please note that the Investor Consortium has finalized the purchase price and terms and conditions of the Proposed Transaction with Sanofi Foreign Participants B.V. upon conclusion of the due diligence process as approved by the Board of Directors of the Company in its meeting held on April 27, 2022. The negotiated purchase price for the Proposed Transaction is Rs. 940/share (excluding transaction costs) and the Company will be acquiring 35% of equity stake in Sanofi Pakistan. The remaining shareholding i.e. 17.87% (Remaining Shareholding) will be taken by other members of the Investor Consortium. The Company shall also be committed to purchase Remaining Shareholding to the extent not taken-up by any other member of the Investor Consortium along with such shares as may be offered under the mandatory public offer in terms of applicable take-over laws.

The Proposed Transaction shall be executed subject to signing of transaction documents between the parties including Share Purchase Agreement and fulfillment of applicable contractual and legal conditions (including for investment in associated companies or associated undertaking and related take-over laws) and applicable corporate and regulatory approvals.