This is a significant milestone in its career as this is an improvement over last year by Rs 23.52 million ie from loss of Rs 18.11 million to a profit of Rs 5.41 million.
The main contributing factors were: Higher turnover of 17.5% and increase in quantity sales by 28.2%.
Capacity utilisation increased by 10%. This means lowering overhead cost per unit. The other factor was lower financial charges.
Karachi plant sales improved dramatically with nearly double in volume sales. Its operations are near break-even situation falling short mainly on account of fiercely competitive pricing.
Plastobag Limited was incorporated in the province of Sindh. It was listed at Karachi Stock Exchange in 1994. According to the Notice of 12th Annual General Meetings Agenda, one of the special businesses was to approve the resolution to change the name of the company to Ecopack Limited.
The stock exchange page of the Daily Business Recorder is quoting its share price in the name of Ecopack Limited.
At present the share in the company is trading at Rs 13.95 per share carrying 39.5% premium over the par value of Rs 10.
The price of its share has remained above par value since quite some time. During the last 52 weeks the market value of its share appreciated by 28.8% to Rs 14.75 from Rs 11.45 per share.
The company has total 5.709 million share out of which 47.35% stock was held by directors and spouses etc on the last count of shares held on 30th June 2003, the closing date of the accounts under reference.
The company's 2227 individual shareholders aggregate shareholding works out to 46.49% of its total shares.
The principal activity of Plastobag Limited's is to manufacture and sale of PET (Polyethylene Terphathalat) bottles.
The greatest growth in sales of its product is emanates from the carbonated soft drink (CSD) sector, the non-CSD growth trends were also quite encouraging. It appears the PET bottle has become a house hold world after Rooh Afza in PET bottle was publicised.
The Chief Executive Officer of the company, Ahsan Jamil has emphasised about growing demand of his product.
The PET container market demand continues to grow in double digits. He says that their firm is compelled to expand their product supply to satisfy the growing demand.
The rise in sales in the future and diminishing market rates would sustain its continued profitability.
During the year ended 30th June 2003, the company registered sales at Rs 294.49 million as compared to Rs 250.54 million posted in the preceding Financial Year 2001-02.
This is the record highest sales amount. The sales figure shows 17.5% rise over the preceding year.
The six years at a glance published with the Annual Report exhibit sustained yearly growth in turnover.
This shows also professional management of the enterprise even during ups and downs of the business environment of the country.
The company's gross margin significantly improved. Financial charges reduced drastically by Rs 10.64 million from Rs 40.44 million to Rs 33.80 million.
During the year under review the company replaced the previous year's bottom line in the red to black during the year under review.
It posted profit after taxation at Rs 2.99 million as against net loss at Rs 19.19 million booked in the preceding year.
The production facilities of the company are located in two provinces. Its NWFP plant at Hattar Industrial Estate started in October 1993, whereas its Sindh plant at Karachi commenced production in the rented premises in January 2000.
The NWFP plant has higher production capacity of 47.7 million bottles p.a. whereas Sindh plant capacity of 15 million bottles p.a.
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Performance Statistics (Million Rupees)
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30 June 2003 2002
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Share Capital-Paid-up: 57.09 57.09
Accumulated Profit (Loss): 4.81 (25.93)
Shareholders Equity: 61.90 31.16
Surplus on Revaluation of F/A: 42.10 92.52
L.T Debts: 110.42 111.58
Deferred Liability: 26.79 3.03
Current Liabilities: 150.52 163.51
Fixed Capital Expenditure: 279.08 295.11
L.T Security Deposits: 1.92 7.75
Current Assets: 110.73 98.94
Total Assets: 391.73 401.80
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Sales, Profit & Payout
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Sales: 294.49 250.54
Gross Profit: 69.35 46.04
Operating Profit: 38.55 22.64
Other Income: 0.95 0.64
Financial (Charges): (33.80) (40.44)
(Depreciation): (18.24) (19.69)
Profit (Loss) Before Taxation: 5.41 (18.11)
Profit (Loss) After Taxation: 2.99 (19.19)
Earnings Per Share (Rs): 0.52 (3.36)
Share Price (Rs) 4-1-2004: 13.95 -
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Financial Ratios
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Book Value Per Share: 10.84 5.46
Debt/Equity Ratio: 51:49 47:53
Current Ratio: 0.73 0.60
Asset Turnover Ratio: 0.75 0.62
Days Receivables: 36 20
Days Inventory: 78 97
Gross Profit Margin (%): 23.54 18.38
Net Profit Margin (%): 1.01 7.65
R.O.A (%): 0.43 (4.77)
R.O.C.E (%): 1.24 (0.08)
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Plant Capacity & Production (Million Bottles)
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A) Hattar Plant
100% Plant Capacity: 47.70 47.70
Actual Production: 29.70 27.01
Utilisation (%): 62.27 56.62
B) Karachi Plant
100% Plant Capacity: 15.00 15.00
Actual Production: 7.96 4.35
Utilisation: 53.09 29.02
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COMPANY INFORMATION: Chairman: Hussain Jamil; Chief Executive Officer: Ahsan Jamil; Financial Controller: H.R. Siddiqui; Company Secretary: Habib ur Rehman Siddiqui; Registered Office & Corporate Office: Near Fire Brigade S.I.T.E Karachi; Factories: Hattar Industrial Estate (NWFP) Karachi: Near Fire Brigade S.I.T.E Karachi.