Cherat Packaging Limited · PSX:CPPL
Cherat Packaging — Q1 FY2021 Earnings Presentation
20 slides from Cherat Packaging's earnings presentation, Nov 4, 2020
Slide 1: Analyst Briefing
ANALYST BRIEFING (Via Zoom) Date: Wednesday, 4 November, 2020 Time: 5:00 PM – 5:50 PM
Slide 2: Disclaimer
DISCLAIMER THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL ANY SECURITIES OR ANY INVESTMENT This presentation has been prepared by Cherat Packaging Limited (CPL) solely for information purposes. No representation or warranty express or implied is made thereto, and no rel
Slide 3: The Founder – Late Mr. Ghulam Faruque (CIE, HPK, OBE)
A N A L Y S T B R I E F I N G THE FOUNDER – LATE MR. GHULAM FARUQUE (CIE, HPK, OBE) • A visionary and highly respected name in industry circles • Spearheaded development of Pakistan’s industry and laid the foundation of country’s industrialization. HONOURS CONFERRED • Office of the Order of the Brit
Slide 4: Group Structure
A N A L Y S T B R I E F I N G GROUP STRUCTURE
Slide 5: Group Turnover & Assets
A N A L Y S T B R I E F I N G GROUP TURNOVER & ASSETS Group Turnover is approximately of Rs. 55 billion Group Assets are approximately of Rs. 80 billion Approximately 5,500 direct and indirect employees
Slide 6: Our Values
A N A L Y S T B R I E F I N G OUR VALUES
Slide 7: Company Locations
A N A L Y S T B R I E F I N G COMPANY LOCATIONS Gadoon Amazai Industrial Estate, District Swabi, KPK Jamrud Road, Peshawar Jinnah Avenue, Islamabad Sundardas Road, Lahore Beaumont Road, Karachi
Slide 8: Global Reach
A N A L Y S T B R I E F I N G GLOBAL REACH
Slide 9: Awards and Recognition
A N A L Y S T B R I E F I N G AWARDS AND RECOGNITION • Being awarded 1st position since 2014 in Best Corporate and Sustainability Report Award (Jointly conducted by ICAP and ICMAP) • Earned overall 1st position in 2018 as best report in BCSR awards • Won Best Company award from Pakistan Stock Exchan
Slide 10: Journey at a Glance
A N A L Y S T B R I E F I N G JOURNEY AT A GLANCE - Arrival of Universal Paper sack line having annual capacity of 135 million bags per annum. - Decision to enter in to the Cherat Packaging Limited Added 3rd Tuber and field of flexible packaging started production with one Bottomer to production lin
Slide 11: Papersack
A N A L Y S T B R I E F I N G PAPERSACK Key features: • Major Plant Suppliers and Strategic Partners • 5 production lines • Production capacity of 400 million bags per annum • Exclusive rights of Select Paper from Mondi Packaging • Expansion of Universal Papersack line in October 2017 (ability to pr
Slide 12: Polypropylene
A N A L Y S T B R I E F I N G POLYPROPYLENE Key features: • Major Plant Supplier and Strategic Partner Windmöller & Hölscher • 3 production lines • Production capacity of 195 million bags per annum • Expansion of 5th Convertex in 2017 • One of the highest production capacity among competitors • Prod
Slide 13: Flexible Packaging
A N A L Y S T B R I E F I N G FLEXIBLE PACKAGING Key features: • Major Plant Suppliers • State-of-the-art production line • Extrusion, Laminator, Rotogravure, Flexographic printing, Bag making, Cylinder & plate making • Only Company to enter with full equipment from top to bottom • Production capaci
Slide 14: Key Highlights
A N A L Y S T B R I E F I N G KEY HIGHLIGHTS
Slide 15: Financial Year 2020 Results
A N A L Y S T B R I E F I N G FINANCIAL YEAR 2020 RESULTS TURNOVER - NET GROSS PROFIT 2020 2019 DIFFERENCE % 2020 2019 DIFFERENCE % Rs. 9,436 Mn Rs. 8,093 Mn Rs. 1,343 Mn 16.59% Rs. 1,174 Mn Rs. 1,401 Mn - Rs. 227 Mn -16.20% OPERATING PROFIT PROFIT BEFORE TAX 2020 2019 DIFFERENCE % 2020 2019 DIFFERE
Slide 16: Profitability
A N A L Y S T B R I E F I N G PROFITABILITY 9,436 10,000 LAST SIX YEARS • Main drivers 8,093 • Higher production / sales 7,092 6,889 6,444 7,500 • Price appreciation / inflation 6,224 • Diversification & new products Rupees in million • Initiation of Flexible Packaging Division (2018) 5,000 • Slash
Slide 17: Quarter Results
A N A L Y S T B R I E F I N G QUARTER RESULTS TURNOVER - NET GROSS PROFIT SEP 2020 SEP 2019 DIFFERENCE % SEP 2020 SEP 2019 DIFFERENCE % Rs. 2,523 Mn Rs. 2,377 Mn Rs. 146 Mn 6.14% Rs. 384 Mn Rs. 302 Mn Rs. 82 Mn 27.15% OPERATING PROFIT PROFIT BEFORE TAX SEP 2020 SEP 2019 DIFFERENCE % SEP 2020 SEP 201
Slide 18: Key Financial Ratios – Quarter Results
A N A L Y S T B R I E F I N G KEY FINANCIAL RATIOS – QUARTER RESULTS GROSS PROFIT PROFIT BEFORE TAXATION PROFIT AFTER TAXATION SEP 2020 SEP 2019 SEP 2020 SEP 2019 SEP 2020 SEP 2019 15.23% 12.70% 7.61% 1.28% 5.45% 0.94% EARNINGS PER SHARE INTEREST COVER RATIO DEBTS TO EQUITY RATIO SEP 2020 SEP 2019 S
Slide 19: Current Issues & Future Prospects
A N A L Y S T B R I E F I N G CURRENT ISSUES & FUTURE PROSPECTS • Cement Demand • PKR parity against foreign currencies (esp. USD and Euro) • Discount rates • Purchasing power of general public (directly impact FPD) • Inflation • Government policies • Duties & taxes • Power cost • Export opportuniti
Slide 20: Thank You for Your Attention Q&A
A N A L Y S T B R I E F I N G THANK YOU FOR YOUR ATTENTION Q&A