Pakistan Oxygen : Transmission of Quarterly Accounts for the Period Ended 31 March 2022

Condensed Interim Financial Information (Unaudited)

for the First Quarter Ended

31 March 2022

Syed Ali Adnan	Matin Amjad	Waqar A. Malik
Chief Financial Officer	Chief Executive Officer	Chairman
1

Syed Ali Adnan	Matin Amjad	Waqar A. Malik
Chief Financial Officer	Chief Executive Officer	Chairman
2

Syed Ali Adnan Chief Financial OfficerMatin Amjad Chief Executive Officer

Waqar A. Malik

Chairman

Directors' Review

We are pleased to present the Directors' Review together with the Condensed Interim Financial Information (un-audited) of your Company for the first quarter ended 31 March 2022.

Pakistan's GDP growth is projected at 4% in FY 2022. Large Scale Manufacturing (LSM) has rebounded strongly with a 12-month moving average growth of 14.5% in FY 2022 as compared to negative 9.9% last year. The average 12-months Consumer Price Index (CPI) is recorded at 10.4% in February 2022 compared to 8.5% for the same period last year. The SBP has raised Policy rate by 250 basis points to 12.25%.

Net Sales for the first quarter ended March 31, 2022 were recorded at Rs. 1.8 billion, up by a robust 20% over last year. This was driven by strong performance in all business segments. Growth in hardgoods and healthcare segments was 31% and 21% higher than last year, respectively. The hardgoods segment continued on its growth trajectory with strong market acceptance of existing brands and newly launched products as well as expansion in customer base. The healthcare segment also recorded significant growth over last year due to strong performance of medical engineering services portfolio as the Company continued to expand its product offering and extended engineering solutions to various hospitals both in public and private sectors. Performance in the bulk segment was also much improved due to better product availability for the industrial sector. The CO2 business also witnessed growth of over 200% over last year after re-commissioning of the Company's own plant.

Gross Profit for the quarter at Rs. 368 million is 19% higher compared to the same period last year. This was achieved despite adverse impact on margins of the healthcare segment due to withdrawal of sales tax exemption on sale of products to hospitals. Overall, margins and overheads were effected due to higher inflation, rupee depreciation, increasing interest rates and higher commodity prices in the international market. Finance cost at Rs. 45 million is 54% higher compared to last year mainly due to increased interest rates.

Profit After Tax and Earning Per Share (EPS) for the quarter were recorded at Rs. 120 million and Rs. 2.56 respectively, higher by 11% compared to last year.

The Company's expansion projects, including the ASU 270 TPD plant and the new electrode manufacturing facility, are progressing as per plan. The Russia-Ukraine conflict has resulted in a high degree of uncertainty in the outlook for international commodity prices and global financial conditions. While, foreseeable challenges of high inflation, global supply chain blockages and the unexpected withdrawal of exemption from sales tax on supplies to hospitals may adversely impact profitability margins, the Company remains focused to overcome these challenges and deliver the various ongoing projects as per plan.

On behalf of the Board

Karachi:

26 April 2022

Matin Amjad Chief Executive Officer

Waqar Ahmed Malik

Chairman