United Distributors Pakistan : Transmission of Half Yearly Report for the Period Ended December 31, 2023

Spirit of Growth

Financial Statements

For the Half Year Ended

December 31, 2023 [un-audited]

UNITED DISTRIBUTORS PAKISTAN LIMITED

Contents

Company Information

Directors' Report to the Members

Auditor's Report On Review Of Condensed Interim Financial Information To The Members

Condensed Interim Statement of Fanincial Position

as at December 31, 2023

Condensed Interim Statement of Profit and Loss Account

for the Half Year ended December 31, 2023 - unaudited

Condensed Interim Statement of Comprehensive Income

for the Half Year ended December 31, 2023 - unaudited

Condensed Interim Statement of Changes in Equity

for the Half Year ended December 31, 2023 - unaudited

Condensed Interim Statement of Cash Flow

for the Half Year ended December 31, 2023 - unaudited

Notes to the Condensed Interim Financial Statement

for the Half Year ended December 31, 2023 - unaudited

02

03

05

06

07

08

09

10

11

CompanyInformation

Board of Directors	CEO	H.R & Remuneration Committee

Mr. Ayaz Abdulla

Chairman

Mr. Asad Abdulla

Director

Ms. Samia Zuberi

Director

Mr. Abdul Samie Cashmiri

Director

Mr. Saqib Abbas

Director

Mr. Salman Hussain Chawala

Director

Mr. Najmul Hassan

Director

Audit Committee

Mr. Mirza Asmer Beg Chief Executive Officer

CFO

Mr. Sohail Hasnain Ahmed Chief Financial Officer

Company Secretary

Mr. M. Imran

Company Secretary

Auditors

Ms. Samia Zuberi

Chairperson

Mr. Abdul Samie Cashmiri

Member

Mr. Ayaz Abdulla

Member

Mr. Saqib Abbas

Member

Bankers

Habib Metropolitan Bank Limited

Habib Bank Limited

Bank Al Habib

MCB Bank Limited

AL-Baraka Bank (Pakistan) Limited

Meezan Bank Limited

Mr. Najmul Hassan

Chairman

Mr. Salman Hussain Chawala

Memebrs

Mr. Ayaz Abdulla

Member

BDO Ebrahim & Co. Chartered Accountants 2nd Floor, Block C, Lakson Square, Building No. 1, Sarwar Shaheed Road Karachi - 74200 Pakistan.

Registered Office

United Distributors Pakistan Limited

Plot # 105, Sector 7-A, Mehran Town

Korangi Industrial Area, Karachi

Legal Advisor	Registrar
Sarmad Aziz	Central Depository
Advocates/Advisors	Company of Pakistan
		Ltd. CDC House # 99-B,
		Block 'B'
		S.M.C.H.S, Main
		Shahrah-e-Faisal, Karachi

Web:

www.udpl.com.pk email: [e-mail]

02. Half Year Report December 2023 United Distributors Pakistan Limited

Directors'Report

The Directors of United Distributors Pakistan Limited (UDPL) takes pleasure in presenting this report, together with the unaudited Financial Statements of the Company for the half year ended December 31, 2023.

The Company has shown remarkable performance improvement, achieving a revenue of Rs.534 million, registering a growth of +53% compared to the same period last year. The gross profit has also risen by the same ratio due to higher sales.

The considerable growth in operating profit recorded as compared to the same period last year which also includes the markup/profit income of Rs.66 million. The operating expenses risen by 22%, attribut-able to the increase in revenue and general inflation trend.

Finance costs have decreased by 34%, primarily due to reduced exchange losses, settlement of short-term loans, and effective cash flow management strategies. There was no share of (loss)/profit recorded from the associate Company, FMC United Private Limited, for the year ended December 31, 2023, due to its negative equity position.

	Particulars		July - December	Changes
		2023		2022
			-------- (Rupees in '000') --------
Net sales	534,258		350,114		184,144
Gross profit	216,639		140,817		75,822
Operating profit	137,858		13,524		124,334
Finance cost	(20,615)		(31,234)		10,619
Share of loss from Asoc.	(-)		(130,246)		130,246
Profit / (loss) before taxation	117.243		(147,956)		265,199
Profit / (loss) after taxation	76.666		(137,277)		213,943
Earning /(loss) per share	Rs. 2.17		(Rs. 3.89)

FUTURE OUTLOOK

We aim to continue our journey for the betterment of farmers through best-in-class services and high- quality solutions to enable them in getting optimal crop yield and healthy food for growing population.

Despite challenges like unsupportive weather, higher interest rate, inflation, product prices volatility and import issues will continue to pose threats to business revenue & profitability in the upcoming period. The Company remains confident and focused on minimizing these impacts by leveraging its diversified product portfolio along with proactively cultivating growth to deliver top- quartile results in line with its core value of delivering enduring stakeholder returns.

ACKNOWLEDGMENTS

On behalf of the Board of Directors, we extend our gratitude to our esteemed Customers, Bankers, valued shareholders and other Stakeholders for their continued support and encouragement and also place on record the appreciation of the valuable services rendered by the employees of the Company.

For and on behalf of the Board

MIRZA ASMER BEG	ASAD ABDULLA
Chief Executive officer	Director

Karachi: February 28, 2024

03. Half Year Report December 2023 United Distributors Pakistan Limited

		2022		2023
184,144		350,114		534,258
75,822		140,817		216,639
124,334		13,524		137,858
10,619		(31,234)		(20,615)
130,246		(130,246)		(-)
265,199		(147,956)		117.243
213,943		(137,277)		76.666
		(Rs. 3.89)		Rs. 2.17

04. Half Year Report December 2023

United Distributors Pakistan Limited

Auditor's Report

On Review of Condensed Interim Financial Information To The Members

We have reviewed the accompanying condensed interim statement of financial position of United Distributors Pakistan Limited ("the Company") as at December 31, 2023 and the related condensed interim statement of profit or loss, the condensed interim statement of comprehensive income, the condensed interim statement of cash flows, the condensed interim statement of changes in equity and the notes to the condensed interim financial statements for the six- month period then ended (here-in- after referred as the "interim financial statements"). Management is responsible for the preparation and presentation of these 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 condensed interim financial statements based on our review.

SCOPE OF REVIEW

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Statements Performed by the Independent Auditor of the Entity." A review of 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 substan-tially 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 condensed interim financial statements are not prepared, in all material respects, in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting

OTHER MATTER

The figures for the quarters ended December 31, 2023 and December 31, 2022 in the condensed interim statement of profit or loss and condensed interim statement of comprehensive income have not been reviewed and we do not express a conclusion on them.

The engagement partner on the review resulting in this independent auditor's report is Tariq Feroz Khan

Chartered Accountants

Karachi

Date: February 28, 2024

UDIN:

RR202310166wveYntBAs

05. Half Year Report December 2023 United Distributors Pakistan Limited

as at December 31, 2023 [Un-audited]

	Note
ASSETS
NON - CURRENT ASSETS
Property, plant and equipment	6
Intangible assets
Long-term investments	7
Deferred taxation
Long-term loan and deposits
CURRENT ASSETS
Stock in trade
Trade and other receivables	8
Loans, advances and prepayments
Short term investments	9
Cash and bank balances

TOTAL ASSETS

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized share capital

50,000,000 (June 30, 2023: 50,000,000) shares of Rs. 10 each Issued, subscribed and paid-up capital

35,271,133 (June 30, 2023: 35,271,133) ordinary shares of Rs. 10 each

Revenue reserve

Un-appropriated profits

General reserves

Revaluation reserve on investment at fair value through other comprehensive income

NON - CURRENT LIABILITIES

Liability under diminishing musharakah financing

Lease liability against right of use of asset

CURRENT LIABILITIES
Trade and other payables	10
Accrued mark-up
Current portion of liability under diminishing musharakah financing
Current portion of lease liability against right of use of asset
Taxation - net
Short- term borrowings	11
Unclaimed dividend
TOTAL EQUITY AND LIABILITIES
CONTINGENCIES AND COMMITMENTS	12

December 31,			June 30,
2023			2023
(Un-audited)			(Audited)
(Rupees in '000')
95,109	65,117
188	263
79,209	62,040
12,999	21,457
4,949		3,877
192,454	152,754
561,939			275,131
292,079			800,430
12,703			6,970
461,702			5,843
29,765			11,785
1,358,188		1,100,159
1,550,642		1,252,913
500,000		500,000
352,713	352,713
325,683			249,017
28,548			28,548
354,231	277,565
69,932		52,763
776,876	683,041
37,007			26,393
5,411			1,114
42,418	27,507
697,519			284,603
-			774
10,140			7,113
8,266			3,105
14,678			87,755
-			158,270
745			745
731,348		542,365
1,550,642		1,252,913

The annexed notes 1 to 20 form an integral part of these condensed interim financial statements

06.

Condensed Interim Statement of

Profit or Loss Account

for the Half Year ended December 31, 2023 [Un-audited]

			Half year ended		Quarter ended
		December 31,		December 31,				December 31,		December 31,
		2023			2022				2023		2022
	Note -------------------------------- (Rupees in '000')----------------------
Revenue from contracts with customers	13	534,258		350,114				279,405		207,640
Cost of sales			(317,619)		(209,297)				(175,691)		(122,034)
	216,639
Gross profit			140,817				103,714		85,606
Marketing and distribution expenses		(125,737)	(103,413)				(63,137)		(56,059)
Administrative and general expenses		(37,717)	(30,358)				(20,154)		(15,592)
Other operating expenses		(492)	(851)				6		1,998
Other income	14	85,165				7,329				41,797		2,121
Operating profit		137,858		13,524				62,226		18,074
Finance cost		(20,615)		(31,234)				(7,759)		(8,335)
Share of loss from associate		-				(130,246)			-		-
Profit / (loss) before income tax		117,243		(147,956)				54,467		9,739
Income tax		(40,577)		10,679				(21,249)		(4,824)
Profit / (loss) after income tax		76,666			(137,277)				33,218		4,915
Earnings / (loss) per share - basic			Rs. 2.17			(Rs. 3.89)	Rs. 0.94		Rs. 0.14
and diluted (Rupees per share)

The annexed notes 1 to 20 form an integral part of these condensed interim financial statements

MIRZA ASMER BEG
ASAD ABDULLA	SOHAIL HASNAIN AHMED
Chief Executive Officer	Director		Chief Financial Officer

Half Year Report December 2023	07.
United Distributors Pakistan Limited

Condensed Interim Statement of

Comparehensive Income

for the Half Year ended December 31, 2023 [Un-audited]

Half year ended		Quarter ended
December 31,		December 31,		December 31,		December 31,
2023		2022		2023		2022

-------------------------------- (Rupees in '000') ----------------------------------

Profit / (loss) after taxation

Other comprehensive income / (loss) Items that will not be subsequently reclassified to statement of profit or loss: Gain / (loss) on fair value measurement

Share of remeasurements of post employment benefit obligations of associate

Deferred tax relating to component of other comprehensive loss

76,666

17,169

-

-

(137,277)

(268,743)

-

-

33,218

17,249

-

-

4,915

(202,529)

-

-

Total comprehensive income for the period

93,835

(406,020)

50,467

(197,614)

The annexed notes 1 to 20 form an integral part of these condensed interim financial statements

MIRZA ASMER BEG	ASAD ABDULLA	SOHAIL HASNAIN AHMED
Chief Executive Officer	Director	Chief Financial Officer

Half Year Report December 2023	08.
United Distributors Pakistan Limited

Condensed Interim Statement of

Changes in Equity

for the Half Year ended December 31, 2023 [Un-audited]

SHARE CAPITAL		REVENUE RESERVE		Revaluation
	Issued,						reserve
	subscribed		Unappropriated		General		on investments		Total
	and paid up		profit			held at fair
			Reserve		value through
	capital
							OCI

--------------------------------- (Rupees in '000') --------------------------------

Balance as at July 1, 2022 (Audited)	352,713
Loss for the half year ended December 31, 2022
	-
Other comprehensive loss
	-
Total comprehensive loss for the half year ended December 31, 2022	-
Balance at December 31, 2022 (Un-Audited)
		352,713
Balance as at July 1, 2023 (Audited)	352,713
Profit for the half year ended December 31, 2023
	-
Other comprehensive income
	-
Total comprehensive income for the half year ended December 31, 2023	-
Balance at December 31, 2023 (Un-Audited)	352,713

104,582

(137,277)

-

(137,277)

(32,695)

249,017

76,666

-

76,666

325,683

28,548

-

-

-

28,548

28,548

-

-

-

28,548

905,557

-

(268,743)

(268,743)

636,814

52,763

-

17,169

17,169

69,932

1,391,400

(137,277)

(268,743)

(406,020)

985,380

683,041

76,666

17,169

93,835

776,876

The annexed notes 1 to 20 form an integral part of these condensed interim financial statements

MIRZA ASMER BEG	ASAD ABDULLA	SOHAIL HASNAIN AHMED
Chief Executive	Director	Chief Financial Officer

Half Year Report December 2023	9.
United Distributors Pakistan Limited