Leading Transformation
FOR THE QUARTER ENDED MARCH 31, 2024 (Un-audited)
Table of Contents
Company Information | 02 |
Directors' Report (English) | 03 |
Directors' Report (Urdu) | 05 |
Condensed Interim Statement of Financial Position | 08 |
Condensed Interim Statement of Profit or Loss and | 09 |
Other Comprehensive Income | |
Condensed Interim Statement of Changes in Equity | 10 |
Condensed Interim Statement of Cash Flow | 11 |
Notes to the Condensed Interim Financial Statements | 12 |
Company Information
BOARD OF DIRECTORS | |
SARFARAZ AHMED REHMAN | (Chairman) |
ROMAN YAZBECK | (Chief Executive) |
MUHAMMAD ZEESHAN | |
PATTARAPORN AUTTAPHON | |
PETER CALON | |
MIRZA REHAN BAIG | |
JUNAID IQBAL | |
COMPANY SECRETARY | |
SANA ENAIT HASHMI | |
AUDIT COMMITTEE | |
MIRZA REHAN BAIG | (Chairman) |
PATTARAPORN AUTTAPHON | |
SANA ENAIT HASHMI | (Secretary) |
HUMAN RESOURCE & | |
REMUNERATION COMMITTEE | |
SARFARAZ AHMED REHMAN | (Chairman) |
ROMAN YAZBECK | |
JAY RAMOS | (Secretary) |
AUDITORS | |
A. F. FERGUSON & CO. | |
Chartered Accountants |
BANKERS
UNITED BANK LIMITED
STANDARD CHARTERED BANK PAKISTAN LIMITED
MCB BANK LIMITED
HABIB BANK LIMITED
CITI BANK N.A.
DEUTSCHE BANK A.G.
FAYSAL BANK LIMITED
HABIBMETRO BANK
BANK OF CHINA
LEGALADVISOR
IJAZ AHMED & ASSOCIATES
REGISTERED OFFICE
OFFICE 04 & 05, 5TH FLOOR,
CORPORATE OFFICE BLOCK,
DOLMEN CITY, PLOT HC-3,BLOCK-4,
CLIFTON, KARACHI-75600
FACTORIES
- G.T ROAD, QUADIRABAD, DISTRICT: SAHIWAL (PUNJAB)
- LEAF DIVISION COMPLEX, 22ND KM, MARDAN SWABI ROAD, MARDAN (KPK)
SHARE REGISTRAR
CDC SHARE REGISTRAR SERVICES LIMITED
CDC HOUSE, 99-B,BLOCK-B, S.M.C.H.S.,
MAIN SHAHRAH-E-FAISAL, KARACHI -74400
Website : http://philipmorrispakistan.com.pk
Email : pmpk.info@pmi.com Email : pmpk.info@pmi.
02
Director's Report
For the Quarter Ended March 31, 2024
As per the International Monetary Fund (IMF) World Economic Outlook update of January 2024, inflation is falling faster than expected in most regions, in the midst of unwinding supply-side issues and restrictive monetary policy. The IMF projected global growth at 3.1% and 3.2% for 2024 & 2025 respectively, though the forecast for 2024-25 is still below the historical average (2000-19) of 3.8%. However, Pakistan's economy continues to face challenges on account of high inflation, soaring energy prices, deteriorating Pakistan rupee value, rising current account deficit, and eroding investors' confidence. According to the World Bank's latest Pakistan Development Update, Pakistan's economy is expected to grow only by 1.8% in the current fiscal year ending in June 2024. Aside from the economic and inflationary pressure, the unprecedented and exorbitant increases in taxes on the existing taxpayers, and a growing presence of the non-tax-paid/informal sector across different industries have not been conducive for investment.
The Track & Trace System (the "System") for the tobacco industry was implemented effective July 01, 2022, with an aim to ensure that all the cigarettes sold in Pakistan are tax-paid, which will boost tax revenue and create a level playing field for the compliant tax-paying sector. However, despite the System's implementation, noticeable enforcement is yet to be witnessed. Expansion of the illicit market share from 40% to 63% was observed post unprecedented excise hike of ~150% in Feb'23 which also resulted in an annual loss of approximately PKR 310 billion to the National Exchequer (according to an estimate). These measures not only cause a dent in the tax revenue targets for the Government but also erode investor confidence, undermine public health initiatives aimed at reducing tobacco consumption, and promote a culture of impunity for the non-tax-paid sector. We urge the Government to ensure immediate, effective, and substantive action to ensure enforcement of the System which will help address the loss of tobacco revenue to the National Exchequer and will also help restore the investors' confidence.
During the three months ended March 31, 2024, Philip Morris Pakistan Limited ( the "Company") reported a Total Net Turnover of PKR 8,628 million reflecting an increase of 48% vs. the same period last year primarily reflecting the export turnover of PKR 4,830 million, an increase of >100% vs the same period last year while the domestic Net Turnover of PKR 3,798 million reflects an increase of 10% vs. prior year. During the three months ended March 31, 2024, the Company's cigarette volume declined by 10.2% reflecting the continuing impact of the Feb'23 excise hike. The Company recorded a profit after tax of PKR 438 million for the three months ended March 31, 2024, vs. PKR 379 million in prior year. For the first three months of the current fiscal year (Jan-Mar'24), the company contributed PKR 10,713 million to the National Exchequer which was higher by 79% vs. the prior period. Further, for the ongoing fiscal year July'23-Mar'24, the Company contributed PKR 34,280 million to the National Exchequer, an increase of 65% vs. the prior period.
03
The tax-paying tobacco industry is facing the repercussions of deteriorating economic conditions, including heightened interest costs, inflated business expenses, and escalated energy tariffs. Coupled with the unprecedented excise hike, the environment for tax-paid tobacco entities to operate has become increasingly challenging. The Company remains committed to vigilantly monitoring market dynamics and striving to effectively manage operations amidst these challenging circumstances.
On behalf of the Board of Directors.
SARFARAZ AHMED REHMAN | ROMAN YAZBECK |
Chairman Board | Chief Executive |
Karachi, April 29, 2024 |
04
05 |
06
FINANCIAL STATEMENTS
07
PHILIP MORRIS (PAKISTAN) LIMITED
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UNAUDITED)
AS AT MARCH 31, 2024
March 31, | December 31, | |||||||||||||||
ASSETS | Note | 2023 | 2023 | |||||||||||||
(Un-audited) | (Audited) | |||||||||||||||
NON CURRENT ASSETS | ||||||||||||||||
(Rupees in thousand) | ||||||||||||||||
FIXED ASSETS | ||||||||||||||||
5 | 5,251,337 | |||||||||||||||
- Property, plant and equipment | 5,058,551 | |||||||||||||||
- Right-of-use assets | 319,794 | 322,396 | ||||||||||||||
- Intangibles | 2,859 | 3,604 | ||||||||||||||
5,381,204 | 5,577,337 | |||||||||||||||
Investment in a subsidiary company | 6 | 1 | 1 | |||||||||||||
Long term deposits | 73,582 | 73,582 | ||||||||||||||
Deferred taxation | 208,757 | 144,269 | ||||||||||||||
5,663,544 | 5,795,189 | |||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Stores and spares - net | 7 | 255,943 | 215,791 | |||||||||||||
Stock in trade - net | 7,641,779 | 12,033,405 | ||||||||||||||
Advances | 8 | 172,484 | 287,937 | |||||||||||||
Prepayments | 51,294 | 62,139 | ||||||||||||||
Other receivables | 2,422,402 | 2,164,436 | ||||||||||||||
Income tax - net | 717,736 | 876,658 | ||||||||||||||
Staff retirement benefits | 34,724 | 34,724 | ||||||||||||||
Short term investment | 3,122,428 | - | ||||||||||||||
Cash and bank balances | 6,455,153 | 9,062,895 | ||||||||||||||
Non-current assets held for sale / disposal | 9 | 20,873,943 | 24,737,985 | |||||||||||||
1,600 | 1,600 | |||||||||||||||
TOTAL CURRENT ASSETS | 20,875,543 | 24,739,585 | ||||||||||||||
TOTAL ASSETS | ||||||||||||||||
26,539,087 | 30,534,774 | |||||||||||||||
EQUITY AND LIABILITIES | ||||||||||||||||
SHARE CAPITAL AND RESERVES | 12,000,000 | |||||||||||||||
Authorised capital | 12,000,000 | |||||||||||||||
Issued, subscribed and paid-up capital | 615,803 | |||||||||||||||
- Ordinary shares | 615,803 | |||||||||||||||
- Preference shares | 10,464,000 | 10,464,000 | ||||||||||||||
Transaction cost on issuance of preference shares - net of tax | 11,079,803 | 11,079,803 | ||||||||||||||
(33,911) | (33,911) | |||||||||||||||
Reserves | 11,045,892 | 11,045,892 | ||||||||||||||
4,986,978 | 4,548,931 | |||||||||||||||
TOTAL EQUITY | 16,032,870 | 15,594,823 | ||||||||||||||
NON CURRENT LIABILITIES | ||||||||||||||||
Lease liabilities | 273,353 | 265,035 | ||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Short term borrowings | 10 | - | - | |||||||||||||
Trade and other payables | 10,039,347 | 13,504,425 | ||||||||||||||
Current maturity of lease liabilities | 102,267 | 92,186 | ||||||||||||||
Unclaimed dividend | 37,128 | 37,128 | ||||||||||||||
Unpaid dividend | 54,122 | 54,122 | ||||||||||||||
Sales tax and excise duty payable | - | 987,055 | ||||||||||||||
TOTAL CURRENT LIABILITIES | 10,232,864 | 14,674,916 | ||||||||||||||
TOTAL LIABILITIES | 10,506,217 | 14,939,951 | ||||||||||||||
TOTAL EQUITY AND LIABILITIES | 11 | 26,539,087 | 30,534,774 | |||||||||||||
CONTINGENCIES AND COMMITMENTS |
The annexed notes from 1 to 20 form an integral part of these condensed interim financial statements.
Sarfaraz Ahmed Rehman | Roman Yazbeck | Muhammad Zeeshan | |
08 | Chairman / Director | Chief Executive Officer | Chief Financial Officer |
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Philip Morris (Pakistan) Ltd. published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 07:06:17 UTC.