Shezan International : Transmission of Quarterly Report for the Period Ended 31-03-2022

COMPANY INFORMATION

Board of Directors:

Mr. Muneer Nawaz

Mr. Humayun A. Shahnawaz Mr. M. Naeem

Mr. Abid Nawaz

Mr. Rashed Amjad Khalid Ms.Manahil Shahnawaz Mr. Shahid Hussain Jatoi

Mr. Abdul Hamid Ahmed Dagia Mr. Nauman Khalid

Chief Financial Officer:

Mr. Faisal Ahmad Nisar, FCA

Company Secretary:

Mr. Khurram Babar

Audit Committee:

Mr. Shahid Hussain Jatoi Mr. Muneer Nawaz

Mr. M. Naeem

Mr. Rashed Amjad KhalidChairman Chief Executive

(Independent Director) (Independent Director) (Independent Director)

Chairman Member Member Member

Human Resource & Remuneration Committee:

Mr. Nauman Khalid Mr. Muneer Nawaz Mr. M. Naeem

Mr. Humayun A. ShahnawazChairman Member Member Member

Registered Office / Head Office:

56 - Bund Road, Lahore - 54500.

Phones: [phone]-04.

Faxes: [phone] & 37466895. E-mail:[e-mail]

Factories:

• • 56 - Bund Road, Lahore - 54500. Phones: [phone]-04.

  Faxes: [phone] & 37466895. E-mail:[e-mail]

• • Plot No. L-9, Block No. 22,

  Federal "B", Industrial Area, Karachi-75950. Phones: [phone]-23.

  Fax: [phone]. E-mail:[e-mail]

• • Plot No. 33-34, Phase III, Hattar Industrial Estate, Hattar. Phones: [phone] & 617343. Fax: [phone].

  E-mail:[e-mail]

Website:

www.shezan.pk

Auditors:

EY Ford Rhodes, Chartered Accountants, 96-B-1, 4th Floor, Pace Mall Building, M. M. Alam Road, Gulberg II, Lahore.

Share Registrar:

Corplink (Private) Limited, Wings Arcade, 1-K, Commercial, Model Town, Lahore.

Legal Advisors:

Cornelius, Lane & Mufti, Nawa-e-Waqt Building, Shahrah-e-Fatima Jinnah, Lahore.

Bankers:

United Bank Limited. MCB Bank Limited. National Bank of Pakistan. Bank Al-Habib Limited. Habib Bank Limited. Bank Alfalah Limited. Allied Bank Limited.

Habib Metropolitan Bank Limited.

NINEMONTHREPORTJULY-MARCH | 2022

01

DIRECTORS' REPORT

TO THE MEMBERS

On behalf of the Board of Directors, we are pleased to present the un-audited Condensed Interim Financial Statements of the Company for the nine-month period ended 31 March 2022.

The domestic and international economic and political landscape has changed significantly in recent months and will have implications for the sustainable economic growth. Uncertainty around the outlook for international commodity prices and global financial conditions had further been exacerbated by the Russia-Ukraine conflict.

During the quarter under review, the political situation in Pakistan can be termed as one of the main domestic risk to the economy due to uncertainty over the growing tensions among the political parties, endangering a fragile economic situation. Heightened domestic political uncertainty contributed to a 5 percent depreciation in the Pak rupee against US dollar, although it has recovered to some extent but still alarming. Rising food and energy inflation have diminished the real buying power of households, disproportionally affecting poor and vulnerable households that spend a larger share of their budget on these items.

The record-breaking inflation and increase in energy prices have increased the cost of raw and packaging materials, consequently leading to an overall surge in the cost of production. The State Bank of Pakistan continued to increase the policy rate which led to higher borrowing costs.

FINANCIAL PERFORMANCE

The summarized operating performance of the Company for the nine-month period ended 31 March 2022 is as follows: 2022 2021

Particulars

Rupees in thousand

Revenue from contracts with customers-net	5,051,522	4,428,415
Gross profit	1,099,162	921,292
Net profit before tax for the period	107,078	122,035
Net profit after tax for the period	81,014	103,125
Re-stated
Earnings per share (Rs.)	8.38	10.67

On the operational side, we would like to apprise our shareholders that our net revenue grew by a handsome 14% during the period as compared to the corresponding period of the last year. Our main products (juices) are an impulse buy, and with the resumption of in-person schooling, recreation and transport sectors and removal of other Covid related restrictions, we were successfully able to maintain the growth momentum. With the efforts of the management and employees and the early arrival of the summer season, the Company showed encouraging results and witnessed growth in the gross profit margin resulting from price rationalization measures coupled with cost-side efficiencies. However, an unprecedented increase in the prices of petroleum products, utilities and raw & packaging materials affected our profit margins.

FUTURE OUTLOOK

We are confident we will be able to continue this growth momentum.The upcoming quarter is our peak season and, continuing precedent, we expect a healthy increase in sales and profit. The Company will strive to attain volumetric growth from its existing customers and will continue to explore local markets. We are also concentrating on finding new export avenues to introduce our products.

The management acknowledges that the uncertain macroeconomic and political environment will continue to pose severe challenges to the Company. The next quarter will remain under pressure due to the monetary and fiscal measures taken by the government as the State Bank of Pakistan has further increased the interest rate by 250 basis points, this will further increase the finance cost of the business.

The Company has long term plans to include new products in its existing product line. The Company's focus on R&D and product management will strengthen its product portfolio, enabling sustainable growth in the future.

ACKNOWLEDGEMENT

Alwaysfarmfresh

We take this opportunity to thank our shareholders for their confidence, valued customers for the trust they continue to place in us, the management team for its sincere efforts, the employees for their commendable services, the Board of Directors for their continuous guidance, and all stakeholders - Bankers, Dealers, Vendors, Associates.

For and on behalf of the Board

02

Muneer Nawaz ChairmanHumayun A. Shahnawaz

Chief Executive

Lahore:

26 April 2022.