Searle : Transmission of Quarterly Report for the Period Ended 2023-12-31

March 04, 2024 at 05:00 am EST

Empowering minds, Inspiring souls

HALF YEARLY REPORT DECEMBER 2023

Contents

Company Information

BOARD OF DIRECTORS		LEGAL ADVISORS
Mr. Adnan Asdar Ali	Chairman	Mohsin Tayebaly & Co.
Mr. Syed Nadeem Ahmed	Chief Executive Officer
Mr. Zubair Razzak Palwala		BANKERS
Mr. Munis Abdullah		Albaraka Bank (Pakistan) Limited
Ms. Faiza Naeem		Askari Bank Limited
Ms. Shaista Khaliq Rehman		Bank Al Habib Limited
Mr. Muhammad Zubair Haider Shaikh		Bank Alfalah Limited
		Bank of Punjab
		Dubai Islamic Bank Pakistan Limited
		Faysal Bank Limited
BOARD OF AUDIT COMMITTEE	Habib Bank Limited
Ms. Shaista Khaliq Rehman	Chairperson	Habib Metropolitan Bank Limited
Mr. Adnan Asdar Ali	Member	Meezan Bank Limited
Mr. Munis Abdullah	Member	National Bank of Pakistan
		Soneri Bank Limited
BOARD OF HR & REMUNERATION	Summit Bank Limited
COMMITTEE
Mr. Muhammad Zubair Haider Shaikh	Chairman
Mr. Adnan Asdar Ali	Member
Ms. Faiza Naeem	Member
		REGISTERED OFFICE
		One IBL Centre, 2nd Floor, Plot # 1
CHIEF FINANCIAL OFFICER		Block 7 & 8, D.M.C.H.S, Tipu Sultan
	Road Off Shahra-e-Faisal, Karachi
Mr. Mobeen Alam
COMPANY SECRETARY
Mr. Zubair Razzak Palwala		SHARE REGISTRAR
		CDC Share Registrar Services Limited
		Head Office, CDC House, 99-B, Block

'B' S.M.C.H.S., Main Shahrah-e-Faisal

Karachi - 74400

AUDITORS

A. F. Ferguson & Co.

02 HALF YEARLY REPORT

Directors' Report to the Members

We are pleased to present the unconsolidated interim financial information of the company for the half year ended December 31, 2023. These financial statements have been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34 - 'Interim Financial Reporting'. The directors' report is prepared in accordance with section 227 of the Companies Act, 2017 and Chapter XII of the Listed Companies (Code of Corporate Governance) Regulations, 2019.

Financial highlights

The company experienced a significant increase in revenue, rising by Rs 2.47 billion to Rs

13.3 billion from Rs 10.8 billion, representing a substantial 23% growth compared to the same period last year. The increase in revenue was mainly driven from the price increase of 20% on non-essential medicines and 14% on essential medicines granted by the government last year in May.

Furthermore, the gross profit margin for the current period improved to 47.37%, up from 45.54% in the previous period. This enhancement was predominantly driven by the aforementioned price adjustments.

The combination of increased sales and decreased operating expenses, which stood at 31.17% in the current period compared to 32.21% previously, contributed to a 6% growth in operating profit, rising from Rs 2.1 billion to Rs 2.2 billion.

However, despite these positive indicators, the profit after tax experienced a significant decline of 59%, dropping from Rs 542.38 million to Rs 221.09 million. This decline was primarily attributed to the depreciation of the Pakistani currency and an increase in finance cost of the company.

In the preceding year, the policy rate had risen from 15% to 22% over time. In contrast, during the current period, the impact of heightened finance costs was particularly pronounced, as the policy rate remained at 22% for the entirety of the period.

Following is the summary of financial results for the half months ended December 31, 2023:

	December 31,
	2023	2022
	(Rupees in thousand)
Revenue	13,323,051	10,852,586
Cost of sales	(7,012,404)	(5,909,993)
Gross Profit	6,310,647	4,942,593
Operating expenses	(4,152,341)	(3,495,871)
Other operating expenses	(41,967)	(42,910)
Other income	118,608	699,068
Profit from operations	2,234,947	2,102,880
Finance cost	(1,807,636)	(1,487,919)
Profit before tax	427,311	614,961
Income tax expense	(206,224)	(72,576)
Profit after taxation	221,087	542,385

DECEMBER 2023 03

EARNINGS PER SHARE

Basic earnings per share after taxation for the period is Rs. 0.47 (December 2022: Rs. 1.38). There is no dilution effect on the basic earnings per share of the Company, as the Company had no convertible dilutive potential ordinary shares outstanding as at December 31, 2023.

FUTURE OUTLOOK

At Searle Pharmaceuticals, we're deeply committed to societal welfare, not just market growth. With a steadfast belief in the well-being of our communities, we strive to make a positive impact beyond business metrics.

Despite prevailing socio-economic challenges, we're dedicated to expanding our market share with integrity. Our enduring commitment to ethical practices ensures that every step we take is aligned with our core values and principles.

While facing hurdles such as exchange rate volatility, inflation, and rising commodity prices, we remain resilient. Our team's perseverance and commitment to our values drive us forward, inspiring innovative solutions to overcome obstacles.

Challenges are opportunities for innovation. With determination, we'll navigate these obstacles, emerging stronger and brighter. Together, we'll shape a better future for Searle and our communities.

For and on behalf of the Board

Ahmed	Zubair Razzak Palwala
Chief Executive Officer	Director
Karachi: February 29, 2024

04 HALF YEARLY REPORT

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نےہوختمکو2023 سمبرد 31

:�یبقمطاکے�ذجردئجنتاتیایلمالئےکےتمدکییںوچھلےاو�

2022

2023

(م ںورار� پےور نیکستااپ�)

10,852,586

13,323,051

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(5,909,993)

(7,012,404)

تجاار�ا کے �ور�

4,942,593

6,310,647

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تجاار�ا �یپرٓا

(3,495,871)

(4,152,341)

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تجاار�ا �یپرٓا�رد

(42,910)

(41,967)

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نیمدٓا�رد

699,068

118,608

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2,102,880

2,234,947

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(1,487,919)

(1,807,636)

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614,961

427,311

تجاار�ا

� نکما

(72,576)

(206,224)

� زا بعد فعمنا

542,385

221,087

06 HALF YEARLY REPORT

INDEPENDENT AUDITOR'S REVIEW REPORT

TO THE MEMBERS OF THE SEARLE COMPANY LIMITED

Report on review of Unconsolidated Condensed Interim Financial Statements

Introduction

We have reviewed the accompanying unconsolidated condensed interim statement of financial position of The Searle Company Limited as at December 31, 2023 and the related unconsolidated condensed interim statement of profit or loss and other comprehensive income, the unconsolidated condensed interim statement of changes in equity, and unconsolidated condensed interim statement of cash flows, and notes to the unconsolidated condensed interim financial statements for the half year then ended (here-in-after referred to as the "unconsolidated condensed interim financial statements"). Management is responsible for the preparation and presentation of these unconsolidated condensed interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these unconsolidated condensed interim financial statements based on our review.

The figures of the unconsolidated condensed interim statement of profit or loss and other comprehensive income for the quarters ended December 31, 2023 and December 31, 2022 have not been reviewed, as we are required to review only the cumulative figures for the half year ended December 31, 2023.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity".

A review of unconsolidated condensed interim financial	statements consists	of making inquiries,
primarily of persons responsible for financial and accounting	matters, and applying	analytical and other

review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying unconsolidated condensed interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

The engagement partner on the audit resulting in this independent auditor's report is Syed Muhammad Hasnain.

A. F. Ferguson & Co.,

Chartered Accountants

Karachi

Date: February 29, 2024

UDIN: RR2023100738pHDJe5Cy

A. F. FERGUSON & CO., Chartered Accountants, a member firm of the PwC network State Life Building No. 1-C, I.I. Chundrigar Road, P.O. Box 4716, Karachi-74000, Pakistan

Tel: +92 (21) 32426682-6/32426711-5; Fax: +92 (21) 32415007/32427938/32424740;

KARACHI LAHORE ISLAMABAD

DECEMBER 2023 07

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As at December 31, 2023		(Un-audited)	(Audited)

		December 31,	June 30,
ASSETS		2023	2023
Note	(Rupees in '000)

Non-current assets

Property, plant and equipment	5
Investment properties - at cost
Intangible assets
Long-term investments - subsidiaries	6
Long-term loans
Long-term deposits
Current assets
Stock-in-trade
Trade receivables	7
Loans and advances	8
Trade deposits and short-term prepayments
Other receivables	9
Short-term investment - at amortised cost
Taxation - payments less provision
Tax refunds due from Government - Sales Tax
Cash and bank balances
Total current assets
Total assets
EQUITY AND LIABILITIES
EQUITY
Share capital
Issued, subscribed and paid-up capital	10
Capital reserves
Share premium
Revaluation surplus on property, plant and equipment
Revenue reserves
General reserve
Unappropriated profit
LIABILITIES
Non-current liabilities
Long-term borrowings	11
Deferred tax liabilities
Employee benefit obligations
Lease liability
Current liabilities
Trade and other payables	12
Short-term borrowings	13
Current portion of long-term borrowings	11
Unpaid dividend	14
Unclaimed dividend
Accrued mark-up
Current portion of lease liability
Total liabilities
Contingencies and commitments	15
Total equity and liabilities

6,470,453

2,894,861

33,080

26,066,718

174

7,396

35,472,682

2,317,896

10,324,835

1,260,847

171,074

900,604

100,000

2,168,206

202,330

1,760,009

19,205,801

54,678,483

5,114,945

9,085,133

3,634,750

280,251

13,984,019

32,099,098

4,707,312

430,228

55,352

75,620

5,268,512

5,875,099

8,633,189

2,088,300

183,472

37,040

484,373

9,400

17,310,873

22,579,385

54,678,483

6,604,610

2,864,868

40,399

18,816,311

117

7,396

28,333,701

2,716,235

11,570,051

1,071,375

156,539

4,524,797

100,000

1,934,114

196,712

196,782

22,466,605

50,800,306

3,900,659

6,049,419

3,717,069

280,251

13,721,361

27,668,759

5,917,063

238,725

57,567

78,702

6,292,057

6,042,397

8,178,277

1,914,275

183,736

37,526

476,651

6,628

16,839,490

23,131,547

50,800,306

The annexed notes from 1 to 27 form an integral part of these unconsolidated condensed interim financial statements.

Chief	Director	Chief Financial Officer
08	YEARLY REPORT

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Searle Company Ltd. published this content on 04 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 10:00:07 UTC.

End-of-day quote Pakistan S.E. Other stock markets 06:00:00 2024-04-25 pm EDT			5-day change	1st Jan Change
57.04 ^PKR	-0.40%		-1.02%	+10.80%

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Euro zone yields edge lower after Fed remarks, ahead of ECB	23-07-27	RE
Norman Broadbent returns to pre-pandemic levels with revenue boost	23-05-31	AN
The Searle Company Limited agreed to acquire Searle IV Solutions Pvt Ltd and Stellar Ventures Private Limited for INR 7.3 billion.	23-05-24	CI
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The Searle Company Limited Reports Earnings Results for the Third Quarter and Nine Months Ended March 31, 2023	23-04-27	CI
The Searle Company Limited Reports Earnings Results for the Second Quarter and Six Months Ended December 31, 2022	23-03-02	CI
UK Gilt Remit Expected to Decline to GBP246 Billion in FY2023-24	23-02-22	DJ
The Searle Company Limited has filed an IPO in the amount of PKR 4.544734 billion.	22-12-15	CI
British crime agency recovers $65 million of suspect money in Barclays accounts	22-11-25	RE
UK bond dealers see jump in gilt issuance for 2023/24- Reuters poll	22-11-16	RE
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The Searle Company Limited Reports Earnings Results for the First Quarter Ended September 30, 2022	22-10-26	CI
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The Searle Company Limited Reports Earnings Results for the Full Year Ended June 30, 2022	22-10-03	CI
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The Searle Company Limited(KASE:SEARL) dropped from S&P Global BMI Index	22-09-19	CI
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THE SEARLE COMPANY LIMITED	+10.80%	79.9M
ELI LILLY AND COMPANY	+25.83%	661B
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MERCK & CO., INC.	+20.34%	332B
ABBVIE INC.	+3.00%	283B
ASTRAZENECA PLC	+13.09%	231B
NOVARTIS AG	+5.46%	200B
ROCHE HOLDING AG	-9.61%	195B
AMGEN INC.	-6.26%	145B

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Searle : Transmission of Quarterly Report for the Period Ended 2023-12-31

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