Pakistan Paper Products Limited · PSX:PPP
Pakistan Paper Products — Corporate Update (November 2024)
42 slides from Pakistan Paper Products's corporate update, Nov 19, 2024
Slide 1: In the Name of Allah, the Most Beneficent, the Most Merciful
IN THE NAME OF ALLAH, THE MOST BENEFICIENT, THE MOST MERCIFUL 1
Slide 2: Corporate Briefing Session for the Year Ended June 30, 2024
Corporate Briefing Session For the Year Ended June 30, 2024 Pakistan Paper Products Limited November 19,2024 Karachi 2
Slide 3: 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 Pakistan Paper Products Limited (PPP) solely for information purposes. No representation or warranty express or implied is made thereto,
Slide 4: Mr. Hashim Bin Sayeed, Founder and Former Chairman
Mr. Hashim Bin Sayeed December 24, 1927 – August 07, 2013 Founder and Former Chairman He was the Pillar of Strength for our Company and will always be our guiding light. May Allah shower His choicest blessing on him. Ameen! 4
Slide 5: Sequence of Presentation
Sequence of Presentation Company Profile Historical Financial Performance Financial Results FY 2024 vs. FY 2023 Future Outlook Questions & Answers 5
Slide 6: Company Profile
Company Profile Pakistan Paper Products Limited 6
Slide 7: Company Profile
Company Profile •Pakistan Paper Products Ltd was established in 1951, at a time when the newly formed country relied entirely on imported paper products, leading to a significant outflow of valuable foreign exchange. Recognizing this pressing need, Mr. Hashim B. Sayeed (Late), the founder and former
Slide 8: Key Historical Milestones
Key Historical Milestones 2022 2020 •Capacity Expansion of Self Adhesive Pro 2016 •Capacity Expansion of Self Label Segment Adhesive Pro was undertaken. 1997 •Major Capacity Expansion of Self Label Segment Adhesive Pro was undertaken. 1964 •Started segment of Self Adhesive Label Segment Pro Labels w
Slide 9: Vision & Mission Statement
Vision & Mission Statement The Company’s vision statement is : To transform the company into a modern and dynamic paper converting company by utilizing experience of the team of professionals to play a meaningful role on sustainable basis in the economy of Pakistan The Company’s mission statemen
Slide 10: Products
Products Self Exercise Ammonia Photocopy Adhesive Books Sensitized & Labels Papers Plotter Paper 10
Slide 11: Exercise Books Segment
Exercise Books Segment "Serving the cause of education for more then 70 years" Pakistan Paper Products Ltd started its operations in 1951 with the production of exercise books, and had the distinction of being the first company in Pakistan to produce exercise books on automatic machinery and after m
Slide 12: Ammonia Sensitized Paper Segment
Ammonia Sensitized paper Segment In 1957, Pakistan Paper Products ltd also had the distinction of being the first company in Pakistan to start producing ammonia sensitized paper and till today remains the market leader of this product. This product which is used in Architect and Engineer Drawings am
Slide 13: Pro Labels Self Adhesive Labels in Roll Form Segment
Pro Labels Self Adhesive Labels in Roll Form Segment In 1997 to mark the 50th Anniversary of Pakistan and 46 Years of its dynamic operations in the country, Pakistan Paper Products Ltd. brought out yet another innovation in the market; Pro Labels –Self Adhesive Labels in Roll Form. These labels whic
Slide 14: Major Customers/ Clients
a Major Customers/ Clients # =e ¢) @ G Getz GlaxoSmithKline >| Breeeaae besa Pakistan State Oil = Unie She or Sar0ael es AJ School sess, Tomorrow is our Destin av=s Oe v SSN LP p A 6 LCI ‘Asian Consumer Care (Pvid Li Master LUCKY CORE INDUSTRIES a - Cc) sCastrol Eee ce Abbott WPrectitt see eed Benck
Slide 15: Board of Directors
Board of Directors Mrs. Muleika Sayeed Non Executive Mr. Asadullah Sayeed Non Executive Mr. Abid Sayeed Chief Executive/ Executive Mr. Abbas Sayeed Mr. Sayeed Imran Chairman/ Non Executive Non Executive Ms. Ayesha Fariel Salahuddin Independent Mr. Matiuddin Siddiqui Independent 15
Slide 16: Pattern of Share holdings as on June 30, 2024
Pattern of Share holdings as on June 30, 2024 S.No. Categories Shareholders Shares Held % Age 1. Associated Companies 907,026 11.34% 2. NIT & ICP 626,458 7.83% 3. Directors, CEO, their spouses and Minor Children 2,969,184 37.11% 4. Executives Nil 5. Individuals 2,531,911 31.65% 6. Public Sector Comp
Slide 17: Historical Financial Performance
Historical Financial Performance Pakistan Paper Products Limited 17
Slide 18: Operating Highlights
OPERATING HIGHLIGHTS Rupees in Thousands (‘000) HISTORICAL TREDNDS 2024 2023 2022 2021 2020 2019 Trading results Turnover 2,125,258 1,923,198 1,365,460 1,224,655 1,021,263 969,478 Sales -Net 1,927,281 1,745,901 1,234,186 1,092,962 913,310 875,439 Gross Profit 391,265 291,317 189,157 160,813 96,911 9
Slide 19: Operating Highlights
OPERATING HIGHLIGHTS Rupees in Thousands (‘000) HISTORICAL TREDNDS 2024 2023 2022 2021 2020 2019 Financial Position Total Assets 2,141,327 1,757,357 1,600,646 1,398,431 1,376,352 1,234,181 Paid up Capital 80,000 80,000 80,000 80,000 80,000 80,000 Reserves 1,581,342 1,027,474 936,558 919,015 875,050
Slide 20: Operating Highlights: Key Indicators
OPERATING HIGHLIGHTS KEY INDICATORS 2024 2023 2022 2021 2020 2019 Operating Return on Equity 9.38% 8.04% 6.07% 7.06% 1.63% 1.75% Return on Assets 7.28% 5.07% 3.86% 5.05% 1.13% 1.46% Valuation Earning per share (pre tax) 28.89 16.58 11.30 12.13 2.70 3.00 Earning per share (post tax) 19.49 11.13 7.72
Slide 21: Operating Highlights: Turnover Ratios in Days
OPERATING HIGHLIGHTS KEY INDICATORS 2024 2023 2022 2021 2020 2019 Turnover Ratios in Days Inventory Turnover Days 90 88 98 102 90 77 Receivable Turnover Days 65 62 69 71 78 63 Payable Turnover Days 39 45 52 55 54 34 Operating Cycle Days ( Net) 116 105 115 118 114 106 21
Slide 22: Turnover & Sales - Net
TURNOVER & SALES - NET Rupees in Thousands (‘000) 1,927,281 2,125,258 1,745,901 1,923,198 1,234,186 1,365,460 1,092,962 1,224,655 1,021,263 875,439 913,310 969,748 Turnover Sales - Net 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 22
Slide 23: Profit After Tax & Earning Per Share (Post tax)
PROFIT AFTER TAX & EARNING PER SHARE (Post tax) Rupees in Thousands (‘000) 155,911 19.49 89,032 11.13 70,565 61,744 8.82 7.72 17,975 15,570 2.25 1.95 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Earning Per Share (Post tax) Profit After Tax 23
Slide 24: Shareholder's Equity & Breakup Value Per Share
SHAREHOLDER’S EQUITY & BREAKUP VALUE PER SHARE Rupees in Thousands (‘000) 701,942 207.67 602,633 488,423 509,167 428,808 440,912 138.43 119.38 124.88 127.07 118.41 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Shareholder's Equity Breakup Value Per Share 24
Slide 25: Dividends
DIVIDENDS HISTORICAL TREDNDS 2024 2023 2022 2021 2020 2019 Cash Dividend 75% 40% 25% 50% 12.5% 10% Stock Dividend - - - - - - Cash Dividend Value (‘000) 60,000 32,000 20,000 40,000 10,000 8,000 Stock Dividend Value(‘000) - - - - - - Dividend Payout 38.48% 35.94% 32.39% 56.69% 64.22% 44.51% Dividend
Slide 26: Segment Wise Sales - Net
SEGMENT WISE SALES – NET Rupees in Thousands (‘000) 1,063,640 986,658 835,654 752,341 749,707 731,638 614,650 531,820 461,070 320,151 317,875 277,714 23,468 20,946 22,746 23,409 27,605 27,987 2019 2020 2021 2022 2023 2024 Exercise Books Pro Labels Sensitize Paper & Others 26
Slide 27: Capacity & Production - Segment wise
CAPACITY & PRODUCTION - Segment wise Segments Units Capacity/ 2024 2023 2022 2021 2020 2019 Production Exercise Capacity 58,632 58,632 58,632 58,632 58,632 58,632 Books Groose Production 49,127 58,686 59,455 45,225 50,466 55,708 Capacity 4,000,000 4,000,000 3,500,000 3,500,000 3,000,000 3,000,000 Pr
Slide 28: Capacity Utilization - Segment wise
CAPACITY Utilization- Segment wise 180.00% 169.02% 177.99% 160.00% 154.91% 139.78% 141.68% 140.00% 123.30% 120.00% 101.40% 100.09% 100.00% 95.01% 86.07% 83.79% 77.13% 80.00% 60.00% 40.00% 20.00% 11.92% 8.28% 7.91% 4.14% 7.08% 2.52% 0.00% FY19 FY20 FY21 FY22 FY23 FY24 Exercise Books 95.01% 86.07% 77.
Slide 29: Financial Performance
Financial Performance 2000 25.00% 1800 1600 20.00% 1400 1200 15.00% 1000 800 10.00% 600 400 5.00% 200 0 0.00% FY19 FY20 FY21 FY22 FY23 FY24 Net Revenue (Rs(mn))-LHS 875 913 1,093 1,234 1,746 1,927 GP margin-RHS 11% 11% 15% 15% 17% 20% NP margin-RHS 2% 2% 6% 5% 5% 8% Net Revenue (Rs(mn))-LHS GP margi
Slide 30: Financial Results (FY2024 vs FY2023)
Financial Results (FY2024 vs FY2023) Pakistan Paper Products Limited 30
Slide 31: Top Line Performance Product wise
Top Line Performance Product wise (Rupees in thousands) FY 2023-24 FY 2022-23 Incr./ (Decr.) Description % Turnover 2,125,258 1,923,198 10.51% Exercise Books 43.36% 835,654 41.91% 731,639 14.22% Pro-Labels 55.19% 1,063,640 56.51% 986,658 7.80% Sensitized Paper 0.34% 6,611 0.39% 6,803 -2.82% Plain Pa
Slide 32: Comparative Net Sales (Segment wise)
Comparative Net Sales (Segment wise) (Rupees in thousands) Exercise Books Pro Labels Sensitized Paper 1,200,000 1,063,640 986,658 1,000,000 835,654 800,000 731,639 600,000 400,000 200,000 6,803 18,646 2,154 6,611 19,317 2,059 0 Net Sales 2022-23 Net Sales 2023-24 32
Slide 33: Key Financial Highlights
Key Financial Highlights (Rupees in thousands) Incr./ (Decr.) Description FY 2023-24 FY 2022-23 % Gross Profit 20.30% 391,265 16.69% 291,317 34.31% Operating Expenses 5.29% 101,909 4.41% 76,946 32.44% Operating Profit 15.01% 289,356 12.28% 214,371 34.98% Finance Cost 3.11% 59,854 4.81% 83,944 -28.70
Slide 34: Key Financial Highlights
Key Financial Highlights (Rupees in thousands) 2,500,000 Sales Net Gross Profit Operating Profit Net Profit before tax Net Profit after tax 2,000,000 1,927,281 1,745,901 1,500,000 1,000,000 500,000 391,265 291,317 214,371 132,617 89,032 289,356 231,101 155,911 0 2022-23 2023-24 34
Slide 35: Operating Performance
Operating Performance • By the Grace of Allah, Pakistan Paper Products Ltd. (PPP) performed well in spite of the economic crisis that the country is going through. • The top line grew by 10.51% with total turnover reaching a new record high of Rs 2.13 billion. • Exercise books segment led the way wi
Slide 36: Pro Labels Segment Performance
Pro Labels Segment Performance: • We had a very challenging year again in Pro Labels and although sales increased in monetary value by 7.8% but in volumetric terms there was a decline of 12.3%. This is mainly due to two important factors. The first being that there has been a big increase in competi
Slide 37: Exercise Books Segment Performance
Exercise Books Segment Performance: • Exercise Books continued to perform very well with sales rising by 14.22% which was mostly driven by high institutional demand in comparison to market sales. Our company always is a reliable partner to institutions as we are the only recognized company in the fo
Slide 38: Sensitized Paper & Plotter Paper Performance
Sensitized Paper & Plotter Paper Performance: • Sensitized paper sales continue to fall and we have now decided that we will slowly shut down this division once we have consumed our existing raw material inventory. We have been saying for years that this is a dying product line due to it being repla
Slide 39: Future Outlook
Future Outlook Pakistan Paper Products Limited 39
Slide 40: Future Prospects
Future Prospects: The future growth of our company is closely tied to the overall macroeconomic performance of the country. Despite this, we remain optimistic about the country’s prospects, and the Board has approved an ambitious expansion and modernization plan for both Pro Labels and Ex Books. At
Slide 41: Question & Answers Session
Question & Answers Session 41
Slide 42: Thanks
Thanks 42
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