Waves Homes Appliance : Transmission of Half Yearly Report for the Period Ended 30 June 2023

WAVES HOME APPLIANCES LIMITED

HALF YEARLY REPORT JUNE 2023

Waves Home Appliances Limited

1.	CORPORATION INFORMATION
BOARD OF DIRECTORS
1.	Mr. Haroon Ahmad Khan		Chief Executive Officer
2.	Mr. Moazzam Ahmad Khan		Non-Executive Director
3.	Mrs. Nighat Haroon Khan		Non-Executive Director
4.	Mr. Hamza Ahmad Khan		Non-Executive Director
5.	Mr. Tajammal Hussain Bokharee	Independent Director
6.	Mr. Khalid Azeem		Executive Director
7.	Mr. Muhammad Zafar Hussain	Chairman/Independent Director
AUDIT COMMITTEE
1.	Mr. Tajammal Hussain Bukharee	Chairman/Independent Director
2.	Mr. Moazzam Ahmad Khan		Non-Executive Director
3.	Mr. Hamza Ahmad Khan		Non-Executive Director
4.	Mr. Khurram Zahoor		Secretary
HR & REMUNERATION COMMTTEE
1.	Mr. Muhammad Zafar Hussain	Chairman/Independent Director
4.	Mr. Haroon Ahmad Khan		Executive Director
3.	Mr. Moazzam Ahmad Khan		Non-Executive Director
4 Mr. Hamza Ahmad Khan		Non-Executive Director
5.	Mr. Khurram Zahoor		Secretary
CHIEF FINANCIAL OFFICER		COMPANY SECRETARY
Mr. Muhammad Usman		Mr. Khurram Zahoor
HEAD OF INTERNAL AUDITOR		LEGAL ADVISOR
Mr. Waleed Afzal		Law Wing, Advocates & Solicitors
EXTERNAL AUDITORS		SHARE REGISTRAR
RSM Avais Hyder Liaquat Nauman		Corplink (Private) Limited
Chartered Accountants
RESISTERED OFFICE		REGISTRATION NUMBER
9-KM Multan Road, Lahore		CUIN 20624
PH. No. 042-35415421-5,35421502-4
UAN: 042-111-31-32-33
BANKERS
Askari Bank Limited	Habib Bank Limited	Sindh Bank Limited
Bank Al Falah Limited	MCB Bank Limited	Faysal Bank Limited
Bank of Punjab Limited	Al-Baraka Bank Limited	Silk Bank Limited
CONTACT INFORMATION
UAN: 042-111-31-32-33,042-35415421-5,042-35421502-4
Email:	[e-mail]
Website:	www.waves.net.pk

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Waves Home Appliances Limited

2. DIRECTORS REPORT TO MEMBERS 2.1 Overview

We, the Board of Directors of Waves Home Appliances Limited (WHALE or the Company), are pleased to present the Directors' report and reviewed financial statements of your Company for the period concluding on 30 June 2023. The key financial highlights from this period are provided herein:

	HY-2023	HY-2022
	Rs. in '000	Rs. in '000
Sales (Net)	2,473,552	5,576,415
Gross Profit	609,635	1,175,669
Profit from Operations	353,686	699,104
Profit before Taxation	105,365	349,674
Profit for the Period	72,093	290,219
Earnings Per Share - Basic and Diluted (Rupees)	0.27	1.08

Based on the financial results in view of the tough current economic conditions the Board of Directors do not recommend any pay-out to the shareholders of the Company.

The Sales (net) of WHALE were PKR 2,473 million as compared to PKR 5,576 million, whereas net profit was PKR 72 million as compared to PKR 290 million in the previous period. This variance is primarily due to the challenging economic and financial environment, where supply was constrained and demand was restricted due to the prevailing recessionary situation. However, it may be noted that the gross margins have substantially improved

2.2 Principal Activities

WHALE or the Company is listed on Pakistan Stock Exchange Limited (PSX). The Company has recently gone under a Scheme of Arrangement (the Scheme) wherein the home appliances business from Waves Corporation Limited, formerly Waves Singer Pakistan Limited, was acquired and merged into the Company. The Scheme was sanctioned by the honorable Lahore High Court, Lahore on 27 May 2022. The effective date of Scheme is 31 August 2021. WHALE is now a subsidiary company of WAVES. The brand includes Deep Freezers, Vizi-Coolers, Refrigerators, Air Conditioners, Washing Machines, Microwaves, Water Dispenser etc.

In response to policy changes permitting the import of materials/components by the home appliances industry and the slow processing of L/C opening by commercial banks, we have sought to ensure the continuity of operations by striving for significant import substitution. In line with this, WHALE has shifted to sourcing materials locally, decreasing reliance on imports and promoting the development of certain imported components domestically. Our products, especially deep freezers and vizi-coolers, have significant corporate sales potential, particularly for businesses like Coca Cola and the broader frozen food and beverages industry. Amid these challenges, we remain fully focused on maintaining the continuity of operations.

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Waves Home Appliances Limited

2.3 Economic Analysis and Outlook

The economic activity in major advanced economies is still challenging, mainly due to the continuation of monetary tightening measures. Inflation has fallen in some economies due to lower energy prices, but food and services prices continue to rise, contributing to persistent high inflation. Monetary tightening measures are still in place. Similarly, the emerging market economies are also facing challenges from the tough global financial conditions such as higher debt servicing costs, capital outflows, and reduced credit availability from foreign lenders. Moreover, rising geopolitical tensions and concerns about supply chain security have prompted several countries to implement trade and investment restrictions. Increasingly restrictive trade policies risk curtailing the gains from global trade and harming the development prospects of low-income countries.

Going forward the financial year 2023 is a challenging year for the country however, it has observed fiscal and current account balance improvements. The decisions and stabilization measures by the Government has navigated the country towards a sustainable path. The growth targets of ~3.5% are anticipated to be met through Kissan package, industrial support, export promotion, encouragement of the IT sector, and resource mobilization efforts. The Consumer Price Index (CPI) inflation and Sensitive Price Indicator (SPI) have declined in the month of June 2023 as compared to previous period. The fiscal front has seen an important improvement, with the primary deficit reducing significantly from the previous period. In order to contain persistently rising inflationary pressures and to maintain external sector stability, SBP had to keep the policy rate to 22%.

To achieve higher and sustainable economic growth, the Government will require prudent and effective economic decisions, political and economic certainty, and continuation of friendly economic policies along with enough foreign exchange financing. The recent IMF approval of the Stand- By Arrangement and other bilateral and multilateral inflows will pave the way to further improve the macroeconomic environment and the confidence of economic agents.

As one of the leading consumer brand entities, WAVES continuously strives to address the pressing issues of our time, such as energy, inflation, supply-chain, and human development. Our team's skills and creativity remain the cornerstone of our success, and we are committed to human development, ensuring that we have the best possible talent driving our growth. We are dedicated to enhance the Company's overall performance and profitability, and remain committed to creating a learning organization.

2.4 Acknowledgements

We extend our gratitude to all stakeholders, including our valued customers, suppliers, business partners, financial institutions, regulators, who have placed their trust in us. The Company's achievements and current standing is a testament to the unwavering commitment, hard work, and tremendous support from our management team and employees. We are confident in their ability to meet and exceed stakeholders' expectations.

For and on behalf of the Board:

-Sd-	-Sd-
___________________	___________________
Chief Executive Officer	Director
Lahore

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