Pakistan Aluminium Beverage Cans : Transmission of Quarterly Report for the Period Ended 30th September 2023

3RD QUARTERLY REPORT

FOR THE NINE MONTHS ENDED

SEPTEMBER 30,2023

CONTENTS

Company Information	4
Directors' Report	5
Condensed Interim Statement of Financial Position	7
Condensed Interim Statement of Profit or Loss	9
Condensed Interim Statement of Other
Comprehensive Income	10
Condensed Interim Statement of Changes in Equity	11
Condensed Interim Statement of Cash Flows	12
Notes to the Condensed Interim Financial Statements	13
	17

PAKISTAN ALUMINIUM BEVERAGE CANS LIMITED 3RD QUARTERLY REPORT 2023

COMPANY INFORMATION

Board of Directors
• Mr. Simon Michael Gwyn Jennings	Chairman and Non-Executive Director
•	Mr. Azam Sakrani	Chief Executive Officer and Director
• Mr. Asad Shahid Soorty	Non-Executive Director
• Ms. Hamida Salim Mukaty	Non-Executive Director
•	Mr. Salim Parekh	Independent Director
• Mr. Zain Ashraf Mukaty	Non-Executive Director
•	Mr. Irfan Zakaria	Independent Director
Audit Committee
•	Mr. Irfan Zakaria	Chairman
• Mr. Asad Shahid Soorty	Member
• Mr. Zain Ashraf Mukaty	Member
Human Resource and Remuneration Committee
•	Mr. Salim Parekh	Chairman
• Mr. Simon Michael Gwyn Jennings	Member
• Mr. Zain Ashraf Mukaty	Member

Chief Financial Officer

• Mr. Syed Asad Hussain Zaidi

Company Secretary

• Mr. Sohail Akhtar Gogal

Registered Office / Main Office

• 29 & 30, M-3 Industrial City, Main Boulevard, Sahianwala, Faisalabad

Auditors

• Kreston Hyder Bhimji & Co. Chartered Accountants

Legal Advisor

• Mr. Muhammad Mehmood Arif

Share Registrar

• THK Associates (Pvt) Ltd
  Plot No. 32-C, Jami Commercial Street 2, D.H.A Phase VII, Karachi, 75500 Pakistan. Tel: [phone] Email: [e-mail]

Website

• www.pkbevcan.com

PAGE04

PAKISTAN ALUMINIUM BEVERAGE CANS LIMITED 3RD QUARTERLY REPORT 2023

DIRECTORS' REPORT

The Directors of the Pakistan Aluminium Beverage Cans Limited (the "Company") are pleased to submit the unaudited interim financial statements of your Company for the quarter ended September 30, 2023.

Business Performance Review

Despite the economic challenges posed by global and domestic geopolitical factors, our company has maintained a consistent performance during the period under review (January-September 2023). Notably, our net sales for the quarter ended September 30, 2023, increased by Rs. 1.08 billion, reaching Rs. 5.42 billion, representing a 24.86% increase compared to the same period last year. This revenue growth is attributed to increased can sales and exchange rate. However, it is important to note that while our overall sales have shown significant growth, our domestic sales have faced a decline due to decreased local consumption resulting from inflationary pressure.

Consequently, we achieved an Earnings per Share of Rs. 4.11 for the quarter ended September 30, 2023. Additionally, our gross profit during the 3rd quarter was 38.16%, a significant increase from 31.84% in the corresponding period last year. Our profit before tax also witnessed an increase of Rs. 0.59 billion, reaching Rs. 1.52 billion, representing a 62.90% increase from the same period last year.

Summarized Financial Results
The operating results of the Company are summarized as follows:	Quarter Ended September 30,
Operating Results	2023	2022	Variance
	(Rs. in Million)	%
Sales -net	5,420	4,341	24.86%
Gross Profit	2,069	1,382	49.68%
Profit before Tax	1,528	938	62.90%
Less: Tax Expense	45	47	-3.97%
Profit after Tax	1,483	891	66.42%
Earnings per share - basic and diluted (Rs.)	4.11	2.47	66.42%

PAGE05

PAKISTAN ALUMINIUM BEVERAGE CANS LIMITED 3RD QUARTERLY REPORT 2023

Capacity Expansion

The current manufacturing capacity is set at 950 million cans per year, and the expansion project, which is aimed at adding 250 million cans per year, is on track to commence commercial production later this year. Initially, we had anticipated that the expansion project would be ready for commercial use by the end of the third quarter. However, the project machinery is now fully installed and currently undergoing integration and trials under the supervision of foreign engineers, and we now expect it to start commercial production in the fourth quarter. Upon completion, the Company will achieve its rated production capacity of 1,200 million cans per year. This increased capacity will significantly enhance our operational efficiencies and economies of scale, allowing us to better meet the demand for aluminum beverage cans.

Future Outlook

Business conditions in Pakistan remained challenging during the 3rd quarter, especially as elevated inflation and interest rates had adversely impacted production costs and demand conditions within the country. However, currency value has improved lately but the sustainability of this favorable factor and extent of its impact on alleviating the inflation and foreign currency liquidity remains to be seen. The management is aware of these uncertainties and is adopting all requisite measures to navigate these difficulties by leveraging its expertise and resources.

Acknowledgements

We would like to convey our sincere appreciation to the shareholders, customers, employees, vendors, lenders, and all other stakeholders for their unwavering commitment, continuous support, and confidence in the Company.

On behalf of the Board of Directors

Chief Executive Officer

Director

26th October 2023

PAGE06

PAKISTAN ALUMINIUM BEVERAGE CANS LIMITED 3RD QUARTERLY REPORT 2023

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)

AS AT September 30, 2023

Un-audited

September 30,

Note 2023

Audited

December 31,

2022

	--------- Rupees ---------
EQUITY AND LIABILITIES
Share Capital and Reserves
Authorised capital
400,000,000 (December 31, 2022: 400,000,000)
ordinary shares of Rs 10 each	4,000,000,000		4,000,000,000
Issued, subscribed and paid up share capital	3,611,082,540		3,611,082,540
Capital reserve - share premium	810,040,795		810,040,795
Unappropriated profit	5,393,307,912		2,460,376,721
	9,814,431,247		6,881,500,056
Non-current liabilities

Long term loans - secured Deferred tax liability

Current liabilities

1,599,073,614

861,028,461

2,460,102,075

2,890,938,438

781,436,605

3,672,375,043

Trade and other payables

Short-term borrowings - secured

Accrued finance cost

Unclaimed dividend

Provision for taxation - net of payments

Current portion of long term loans

Contingencies and commitments

4

2,476,828,870

3,286,300,999

131,583,517

1,076,898

-

331,042,618

6,226,832,902

18,501,366,224

2,586,566,927

1,489,653,968

96,800,842

341,832

59,674,158

570,669,247

4,803,706,974

15,357,582,073

PAGE07

Chief Executive Officer

Chief Financial Officer

Director

PAKISTAN ALUMINIUM BEVERAGE CANS LIMITED 3RD QUARTERLY REPORT 2023

Note

ASSETS

Non-current assets

Un-audited	Audited
September 30,	December 31,
2023	2022

--------- Rupees ---------

Property, plant and equipment	5
Long term investment
Long term deposits

Current assets

Stores and spares Stock in trade Trade debts

Advances, deposits, prepayments and other receivables Accrued income

Income tax refundable Short-term investments Cash and bank balances

7,635,021,151

98,846,000

1,511,120

7,735,378,271

482,981,609

4,957,927,215

701,375,362

513,845,583

33,709,151

156,416,510

1,785,204,110

2,134,528,413

10,765,987,953

6,962,632,993

100,000,000

1,511,120

7,064,144,113

292,576,461

4,098,263,652

957,046,665

1,901,658,678

8,171,937

-

195,653,000

840,067,567

8,293,437,960

18,501,366,224 15,357,582,073

The annexed notes 1 to 9 form an integral part of these condensed interim financial statements.

Chief Executive Officer	Chief Financial Officer	Director	PAGE08

PAKISTAN ALUMINIUM BEVERAGE CANS LIMITED 3RD QUARTERLY REPORT 2023

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

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023

		Three Months Ended		Nine Months Ended
		September 30,	September 30,		September 30,	September 30,
	Note	2023		2022	2023		2022
		---------------------------	Rupees ---------------------------
Sales - net	6	5,420,037,143		4,341,049,233	16,540,421,070		10,850,718,096
Cost of sales		(3,351,515,717)		(2,959,056,641)	(10,065,423,815)		(7,149,806,411)
Gross profit		2,068,521,426		1,381,992,592	6,474,997,255		3,700,911,685
Administrative expenses		(208,396,140)		(109,750,805)	(469,013,946)		(256,460,998)
Selling and distribution expenses	(178,251,151)		(159,137,538)	(914,229,637)		(287,889,275)
Other operating incomes		115,210,925		53,588,982	425,421,921		179,450,087
Other operating expenses		(73,615,666)		(88,320,087)	(533,355,821)		(374,774,115)
Finance costs		(195,703,701)		(140,497,239)	(523,267,772)		(338,706,128)
Profit before taxation		1,527,765,693		937,875,905	4,460,552,000		2,622,531,256
Taxation		(45,145,265)		(47,011,855)	(263,741,920)		(154,894,763)
Profit for the period		1,482,620,428		890,864,050	4,196,810,080		2,467,636,493
Earnings per share
- basic and diluted		4.11		2.47	11.62		6.83

The annexed notes 1 to 9 form an integral part of these condensed interim financial statements.

PAGE09

Chief Executive Officer

Chief Financial Officer

Director

PAKISTAN ALUMINIUM BEVERAGE CANS LIMITED 3RD QUARTERLY REPORT 2023

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023

	Three Months Ended	Nine Months Ended
	September 30,	September 30,	September 30,	September 30,
	2023	2022	2023	2022
	---------------------------	Rupees ---------------------------
Profit for the period	1,482,620,428	890,864,050	4,196,810,080	2,467,636,493
Other comprehensive income:

Items that may be reclassified subsequently to profit or loss Items that will not be reclassified subsequently to profit or loss

Total comprehensive income for the period

-

-

1,482,620,428

-

-

890,864,050

-

-

4,196,810,080

-

-

2,467,636,493

The annexed notes 1 to 9 form an integral part of these condensed interim financial statements.

Chief Executive Officer

Chief Financial Officer

Director

PAGE10