Towellers Ltd. · PSX:TOWL
Towellers — Investor Presentation (November 2023)
65 slides from Towellers's investor presentation, November 2023
Slide 1: Towellers Limited Corporate Briefing Session 2023
TOWELLERS LIMITED CORPORATE BRIEFING SESSION 2023
Slide 2: Disclaimer
DISCLAIMER • This presentation has been prepared by Towellers Ltd solely for information purposes. No representation or warranty express or implied is made thereto, and no reliance should be placed on the fairness, accuracy, sufficiency, completeness or correctness of the information or any opinion
Slide 3: Industry Overview
Industry Overview
Slide 4: Some industry facts and figures - Global
Some industry facts and figures - Global The global textile market grew from $573.22 billion in 2022 to $610.91 billion in 2023 at a compound annual growth rate (CAGR) of 6.6%. v Pakistan is the 10th largest exporter of Textile commodities in the world and provides 9% of the global textile needs.
Slide 5: Industry facts & figures
Industry facts & figures Annual growth rate of 13% was targeted for textile exports of Pakistan during the years 2020-2025 to achieve the export target v of $25 billion. In fiscal year 2022-23 ended June 30, textile and garment exports from Pakistan declined by 14.63 percent to $16.5 billion again
Slide 6: Industry performance during the ongoing year 2023
Industry performance during the ongoing year 2023 The Country’s textile group exports declined by 9.95 percent during first quarter of year 2023-24 and stood at US$ 4.127 billion compared to US$ 4.584 billion during the same period last year.; Pakistan’s textile exports in October 2023 ,however, h
Slide 7: Brief Company Profile
Brief Company Profile Towellers Limited has been manufacturing textile products since 1973. The company is operated now by its third generation and has business experience spreading over almost 5 decades. The Company owns vertically integrated mills having their own weaving, dyeing, and sewing oper
Slide 8: Some of the manufacturing processes are as follows:
Some of the manufacturing processes are as follows:
Slide 9: Knitting Section
c Oo Y O ro) Vn) of c & 2 ra ~
Slide 10: Checking Area
Checking Area a a - - s os y a 2 4
Slide 11: Packaging Area
Packaging Area
Slide 12: Cutting Machine
Cutting Machine
Slide 13: Screen Printing Machine
Screen Printing Machine
Slide 14: SWOT Analysis of Towellers Limited
SWOT ANALYSIS OF TOWELLERS LIMITED
Slide 15: Strengths
STRENGTHS The Company enjoys the sound financial footings which is evident by reserves balance, healthy current ratio, minimal gearing, well managed working capital which provides necessary space required for sustainable growth, profitability and expansion; It also enjoys good reputation among its
Slide 16: Weaknesses
WEAKNESSES There have been some dependability on few solid customers. The Company may need to diversify the customer and product base. Some of the machines are quite old and obsolete, the inefficiencies of which may impact the efficiency and ability to reduce the costs, that may affect the price c
Slide 17: Opportunities
OPPORTUNITIES The company has the ability to diversify its product portfolio further having its feet wet in both the home textile as well as the apparel trade. In order to gain market share, the company can add to its manufacturing facility versatile products which are currently not being manufact
Slide 18: Opportunities (Contd)
OPPORTUNITIES (Contd) Pakistan, unlike last year, is expected to produce an abundant cotton crop this year, resulting in availability of high quality cotton that probably will also be cheaper than import option. The international textile market is witnessing a surge in demand, which in turn, has led
Slide 19: Threats
THREATS Escalation in ongoing wars in Ukraine and Gaza could adversely impact the economies of world and could impact upon the international prices of oil and other commodities and could significantly affect the international demand of textile products. Ongoing political instability, weak economic
Slide 20: Few of the Company's Manufactured Products Are as Follows
FEW OF THE COMPANY’S MANUFACTURED PRODUCTS ARE AS FOLLOWS:
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Slide 27: Socially compliant Manufacturing Facilities
Socially compliant Manufacturing Facilities • Towellers is proud to have achieved a Top rating in it social and quality compliance audits. The accreditations are from Top inspection agencies and hold global recognition. These certifications merit the work that we do at our factories and allow the co
Slide 28: Major Investments Made by the Company
MAJOR INVESTMENTS MADE BY THE COMPANY
Slide 29: Plant & Machinery
PLANT & MACHINERY Further to the addition of latest dyeing machines, the Company is continuously investing in its fabric processing facilities. During the year, the Company has purchased Heat Set Machine, Raising Machine, Piling tester among others to increasing the quality and capacity of its dye
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Slide 34: Sie ae ee
Sie ae ee 4
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Slide 37: Solar Power Project
SOLAR POWER PROJECT The Company has invested in the solar power projects at its head office and its factories which has brought savings in power costs. The energy bills have been curtailed and these investments will be paid back within five years. This year also the Company has enhanced its solar p
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Slide 40: Environment Protection
Environment Protection The Company had further enhanced the already existing fire hydrant system in our factories to make it compliant with international standards and to strengthen the ability to counter the hazards of fire at our premises. The processing facility has a water effluent treatment
Slide 41: Company's performance during the year 2023
Company’s performance during the year 2023 • We are thrilled to report that our company has performed exceptionally well over the past year. Our teams have worked diligently, and our financial results reflect their dedication and hard work. We've seen significant growth in key areas, and our strateg
Slide 42: Company's performance during the year 2023 (Contd)
Company’s performance during the year 2023 (Contd) Towellers has achieved a growth of 8.29% in sales during the current year and have crossed the milestone of Rs. 11 B. Total turnover achieved is Rs. 11.09 B as compared to Rs. 10.24 B last year. In absolute values, profitability of the Company has
Slide 43: Company's performance during the first quarter of 2023
Company’s performance during the first quarter of 2023 The first quarter of the current year has surpassed the turnover of corresponding period during the last year. The Company has achieved the sales turnover of Rs. 3.9 Billion, showing a growth of 26.7% v as compared to the same period last year.
Slide 44: Company's outlook for 2nd and 3rd Quarter
Company’s outlook for 2nd and 3rd Quarter • International economic conditions could be uncertain in case Gaza and Ukraine war escalates, which could impact oil prices besides the market conditions across the globe. Uncertain domestic political and economic conditions are already affecting the busine
Slide 45: Outlook of the company for the year 2022-23
Outlook of the company for the year 2022-23 During the first quarter the Company has achieved a growth of 27% which includes the affect of Rupee devaluation. However, actual growth in terms of actual shipments is 4%. However, the Company has set a challenging target of 10% growth during the year, w
Slide 46: Outlook of the company for the year 2023-24
Outlook of the company for the year 2023-24 All efforts are being made to keep the profitability of the Company above 10% for the financial year. However, as described, due to global and domestic economic problems, the actual results may vary.
Slide 47: Financial Performance
FINANCIAL PERFORMANCE
Slide 48: Comparative Annual Financial Results: Growth 8.29%
COMPARATIVE ANNUAL FINANCIAL RESULTS GROWTH 8.29%
Slide 49: Comparative annual financial results
Comparative annual financial results Rs. in Millions Growth 2023 2022 2021 2020 2019 2018 % Revenue (23.09) 42.95 55.84 31.88 23.61 27.12 22.68 in US$ Revenue 8.29 11,086.92 10,238.09 5,220.75 3,772.25 3,848.28 2,605.81 in PKR PAT 124.67 2,388.34 1,063.05 556.46 275.89 397.5 253.61 NP Ratio 21.54 10
Slide 50: Comparative Quarterly Financial Results
Comparative Quarterly Financial Results Rs. in Millions Growth Jul-Sep, Jul-Sep, Jul-Sep, Jul-Sep, Jul-Sep, Jul-Sep, % 2023 2022 2021 2020 2019 2018 Revenue 4.04 13.25 12.74 14.07 7.81 6.75 7.42 in US$ Revenue 26.67 3,899.69 3,078.62 2,369.51 1,325.99 1,066.74 962.10 in PKR PAT (32.91) 503.99 751.27
Slide 51: Year Wise Comparison Of Sales & Profitability
Year Wise Comparison Of Sales & Profitability Rs in Millions 2023 2022 2021 2020 2019 2018 2017 Sales 11,086.92 10,238.09 5,220.75 3,772.25 3,848.28 2,605.81 2,686.14 Turnover PAT 2,388.34 1,063.05 556.46 275.89 397.5 253.61 61.70 EPS 140.49 62.53 32.73 16.23 23.38 14.92 3.63
Slide 52: Year Wise Comparison Of Sales & Profitability (Contd)
Year Wise Comparison Of Sales & Profitability (Contd) Sales Comparison over the years 11086.92 12000 10238.09 10000 8000 5220.75 6000 3772.25 3848.28 4000 2605.81 2686.14 2000 0 Sales Turnover (Rs. In Millions) 2023 2022 2021 2020 2019 2018 2017
Slide 53: Year Wise Comparison Of Sales & Profitability (Contd)
Year Wise Comparison Of Sales & Profitability (Contd) Profit after tax (PAT) comparison over the years 2388.34 2500 2000 1500 1,063.05 1000 556.46 397.5 500 275.89 253.61 0 PAT (Rs. In Millions) 2023 2022 2021 2020 2019 2018
Slide 54: Year Wise Comparison Of Sales & Profitability (Contd)
Year Wise Comparison Of Sales & Profitability (Contd) EPS comparison over the years 160 140.49 140 120 100 80 62.53 60 32.73 40 23.38 16.23 14.92 20 3.63 0 EPS 2023 2022 2021 2020 2019 2018 2017
Slide 55: Reserves Utilization for capitalization
Reserves Utilization for capitalization • In light of our robust performance, we have carefully evaluated the best use of our reserves to further strengthen the company. After thorough consideration, we have decided to use a portion of our reserves for capitalization. This strategic move aims to fue
Slide 56: Future Outlook of the Company
Future Outlook of the Company • Looking ahead, we are confident that these measures will contribute to our continued success. We remain dedicated to innovation, operational excellence, and creating value for our shareholders. Your trust and support are vital as we embark on this exciting phase of gr
Slide 57: Outlook Of The Company For June 2024
Outlook Of The Company For June 2024 Rs. in Millions Outlook Actual Actual Actual Actual Actual June 2024 June 2023 June 2022 June 2021 June 2020 June 2019 Revenue 47.14 42.95 55.84 31.88 23.61 27.12 in US$ Revenue 13,434.76 11,086.92 10,238.09 5,220.75 3,772.25 3,848.28 in PKR PAT 1,410.65 2,388.34
Slide 58: Six Years at a Glance from 2018 to 2023
SIX YEARS AT GLANCE FROM 2018 TO 2023 Rs. In Thousands Income Statement 2023 2022 2021 2020 2019 2018 Turn over-Net 11,086,916 10,238,086 5,220,747 3,772,254 3,848,285 2,605,809 Cost of sales 7,944,316 8,151,154 4,109,212 3,071,384 2,985,218 2,217,211 Gross profit / (loss) 3,142,600 2,086,932 1,111,
Slide 59: Financial Position
Financial Position 2023 2022 2021 2020 2019 2018 Fixed assets 3,250,949 3,142,611 1,810,526 1,663,761 1,231,256 1,264,375 Long term loans 19,250 20,487 19,501 16,861 12,851 10,643 Long term deposits 44,271 35,321 29,349 16,875 19,755 19,755 Current assets 6,667,455 4,632,048 2,437,648 1,852,202 1,47
Slide 60: Key Ratios
Key Ratios 2023 2022 2021 2020 2019 2018 Gross margin% 28.35 20.38 21.29 18.58 22.43 14.91 Net profit (loss)% 21.54 10.38 10.66 7.31 10.46 9.73 Quick ratio% 2.23 1.36 0.91 1.32 1.20 0.62 EBIT margin% 23.76 11.80 11.87 8.52 11.89 10.93 Current ratio% 2.98 2.06 2.89 2.76 2.51 1.75 Earning/(loss) per s
Slide 61: Dividend
DIVIDEND Expecting a healthy profit during the year, the Company announced and distributed 30% interim dividend. Later, during the Annual General Meeting the Company announced a 100% dividend this year also, which was distributed during the first week of November. The Company wants to thank its es
Slide 62: Corporate Social Responsibilities
Corporate Social Responsibilities The company whole heartedly believes that our people are our greatest strength. The profits made in the company are regularly distributed to various institutions such as The Citizen Foundation and Lady Dufferin Hospital who are engaged in providing free educationa
Slide 63: Corporate Social Responsibilities (Contd)
Corporate Social Responsibilities (Contd) • The Company recently donated latest anesthesia machine to Sindh institute of Urology & Transplantation which is one of the very prestigious and respectable medical institution that is renowned for its free medical service for the people of Karachi
Slide 64: Conclusion
Conclusion • In conclusion, we want to express our gratitude for your continued support. Our journey of growth and success is a collective effort, and we are confident that the decisions made today will contribute to a prosperous future for our company. • Thank you for your attention, and I look for
Slide 65: Manufacturing Quality Textiles since 1973
Manufacturing Quality Textiles since 1973 TOWELLERS HOUSE W.S. A 30, 31 Block 1 Federal Area, Karachi 75950 Pakistan +92 21 36322500, 36325500, 36323434, 36323100, 36326600 towellers@towellers.com www.towellers.com