United Brands : Transmission of Quarterly Report for the Period Ended 2023-09-30

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First Quarter ended

September 30, 2023 (Un-audited)

Contents
CONTENTS
Company Information	02
Directors' Report	03
Unconsolidated Condensed Interim Statement of Financial Position	07
Unconsolidated Condensed Interim Profi�t or Loss and Other Compehensiver Income
- (Unaudited)	08
Unconsolidated Condensed Interim Statement of Cash Flows - (Unaudited)	09
Unconsolidated Condensed Interim Statement of Changes in Equity - (Unaudited)	10
Notes to the Unconsolidated Financial Statements	11
Consolidated Condensed Interim Statement of Financial Position	16
Consolidated Condensed Interim Profi�t or Loss and Other Compehensiver Income -
(Unaudited)	17
Consolidated Interim Statement of Cash Flows - (Unaudited)	18
Consolidated Interim Statement of Changes in Equity - (Unaudited)	19
Notes to the Consolidated Financial Statements	20

COMPANY INFORMATION

BOARD OF DIRECTORS
Mr. Munis Abdullah	Chairman
Mr. Abdul Samad	Independent Director
Ms. Tayyaba Rasheed	Independent Director
Mr. Syed Nadeem Ahmed	Chief Executive Of�ficer
Mr. Zubair Razzak Palwala	Non-Executive Director
Ms. Faiza Naeem	Non-Executive Director
Mr. Rizwan Ahmad	Executive Director
AUDIT COMMITTEE
Ms. Tayyaba Rasheed	Chairperson
Mr. Zubair Razzak Palwala	Member
Ms. Faiza Naeem	Member
HUMAN RESOURCE & REMUNERATION COMMITTEE
Mr. Abdul Samad	Chairman
Mr. Zubair Razzak Palwala	Member
Mr. Syed Nadeem Ahmed	Member
CHIEF FINANCIAL OFFICER
Mr. Shariq Ahmed
COMPANY SECRETARY
Mr. Farooq Akbar
INTERNAL AUDITORS
Grant Thornton Anjum Rahman, Chartered Accountants
EXTERNAL AUDITORS
A.F. Ferguson & Company, Chartered Accountants
LEGAL ADVISOR
Abdul Karim Khan & Company
BANKERS
Habib Bank Limited
Bank Al Habib Bank Limited
Standard Chartered Bank (Pakistan) Limited
Silkbank Limited
Meezan Bank Limited
Al Baraka Bank Limited
Habib Metropolitan Bank Limited
Telenor Microfinance Bank

REGISTERED OFFICE

2nd Floor, One IBL Center, Block no. 7 & 8, Delhi Mercantile Muslim Cooperative Housing Society, Main Shahrah-e-Faisal,Karachi-75530 Tel: [phone].

SHARE REGISTRAR

CDS Share Registrar Services Limited, CDC House, 99-B,Block-B, SMCHS Shahra-e-Faisal, Karachi - 74400

WEBSITE

www.ubrands.biz

02 | UNITED BRANDS LIMITED

DIRECTORS' REPORT TO THE SHAREHOLDERS OF THE COMPANY

The Board of Directors of United Brands Limited are pleased to present Directors' report together with the consolidated condensed interim financial information (unaudited) of the Company for the quarter ended September 30, 2023. This consolidated condensed interim financial information (unaudited) is prepared in accordance with Section 228 of the Companies Act, 2017.

Principal Activities

The principal activities of the Company are trading and distribution of consumer goods and allied products. The company has recently started offering services for telecom products.

The principal activities of the Subsidiary comprise primarily of transportation and warehousing, trading and distribution of goods and assembling of electrical goods.

SUMMARY OF FINANCIAL PERFORMANCE		September
September
	30, 2023	30, 2022
	(Rupees in '000)
Revenue		688,871
647,289
Gross profit	88,598	100,804
Gross profit (% of revenue)	13.6%	14.6%
Operating expenses	(66,750)	(77,271)
Finance cost	(17,209)	(11,340)
Profit/(Loss) for the period	(6,354)	836

FINANCIAL OVERVIEW

Revenue of the Company has reduced by 6% due to non-availability of imported goods. Operating expenses have declined in absolute where as % of revenue they have increased due to rise cost of fuel, utilities and labour.

EARNINGS PER SHARE

(Loss) / earning per share for quarter ended September 30, 2023 is PKR (0.07) (Sep 30, 2022: PKR 0.01).

FUTURE OUTLOOK

Company's top and bottom line is impacted due to embargoes over imports and rising distribution costs. Company is focused on optimization of resources and managing efficient operations to entact and increase its bottom and top line.

ACKNOWLEDGMENT

The Directors appreciate the support of all the stakeholders, including the customers, managers, employees, and others.

Karachi.

Date: October 26, 2023

	Syed Nadeem Ahmed		Zubair Razzak Palwala
	Chief Executive Of�ficer		Director
		Quarter Ended September | 2023 | 03

04 | UNITED BRANDS LIMITED

Quarter Ended September | 2023 | 05

UNCONSOLIDATED

FINANCIAL STATEMENTS

UNITED BRANDS LIMITED

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF

FINANCIAL POSITION				Audited
	Unaudited
AS AT SEPTEMBER 30, 2023
	September		June
		30, 2023	30, 2023
ASSETS	Note	------ Rupees in '000 ------
Non-current assets			4,334
Property and equipment		3,906
Intangible assets		-	5
Investments in subsidiary		25,000	25,000
Long - term deposits		412	412
Current assets		29,318		29,751
			334,904
Inventories	4	508,513
Trade and other receivables	5	337,146		267,781
Prepayments and advances	6	40,882		23,873
Taxation - payments less provision		29,765		35.146
Tax refunds due from Government - sales tax		71,024		63,537
Accrued interest		962		962
Cash and bank balances		36,352		97,583
Total assets		1,024,644		823,686
	1,053,962		853,437
EQUITY AND LIABILITIES
Share capital and reserves			918,000
Issued, subscribed and paid-up capital		918,000
Accumulated losses		(1,051,504)	(1,026,844)
Liabilities		(133,504)		(108,844)
Current liabilities
Trade and other payables		920,092		691,400
Short term borrowing		237,107		255,763
Accrued mark-up		29,914		14,765
Unclaimed dividend		353		353
Total liabilities		1,187,466	962,281
CONTINGENCY AND COMMITMENTS	9
Total equity and liabilities		1,053,962		853,437

The annexed notes 1 to 11 form an integral part of these condensed interim financial statements.

	Syed Nadeem Ahmed		Zubair Razzak Palwala		Shariq Ahmed
	Chief Executive Of�ficer	Director		Chief Financial Of�ficer
07 | UNITED BRANDS LIMITED

UNITED BRANDS LIMITED

UNCONSOLIDATED CONDENSED INTERIM PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - (UNAUDITED)

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

Quarter ended

			September					September
			30, 2023		30, 2022
	Note	------ Rupees in '000 ------
					414,159
Revenue from contracts with customers	7	297,337
Cost of sales		(253,704)		(345,913)
Gross profit		43,633		68,246
Marketing and distribution expenses		(47,140)		(59,634)
Administrative and general expenses		(4,534)		(1,598)
Other operating expenses		-		(6,896)
Other income		33		8,013
Profit / (loss) from operations		(8,008)		8,131
Finance cost		(15,909)		(11,131)
(Loss) before Income tax		(23,917)		(3,000)
Income tax expense			(743)			(2,903)
(Loss) for the period		(24,660)				(5,903)
Other comprehensive income		-		-
Total comprehensive income			(24,660)		(5,903)
			(Rupees)
					(0.06)
Basic and diluted (loss) per share		(0.27)

The annexed notes 1 to 11 form an integral part of these condensed interim financial statements.

Syed Nadeem Ahmed		Zubair Razzak Palwala		Shariq Ahmed
Chief Executive Of�ficer		Director		Chief Financial Of�ficer

Quarter Ended September | 2023 | 08

UNITED BRANDS LIMITED

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS - (UNAUDITED)

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

Quarter ended

		September			September
		30, 2023	30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES	Note	------ Rupees in '000 ------
Cash used in operations	8	(46,453)	(48,463)
Income tax paid		4,638	8,157
Finance cost paid		(760)	(11,514)
Net cash used in operating activities		(42,575)			(51,820)
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for acquisition of equipment		-	(21)
Net cash outflow from investing activities		-			(21)
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts from short term financing		(18,656)		19,208
Payment for long-term borrowings		-		(14,671)
Net cash (used in) / generated from financing activities		(18,656)	4,537
Net decrease in cash and cash equivalents		(61,231)		(47,304)
Cash and cash equivalents at the beginning of the period		97,583	106,813
Cash and cash equivalents at the end of the period
	36,352		59,509

The annexed notes 1 to 11 form an integral part of these condensed interim financial statements.

	Syed Nadeem Ahmed		Zubair Razzak Palwala		Shariq Ahmed
	Chief Executive Of�ficer	Director		Chief Financial Of�ficer
09 | UNITED BRANDS LIMITED