Merit Packaging Limited · PSX:MERIT
Merit Packaging — Investor Presentation (November 2023)
24 slides from Merit Packaging's investor presentation, Nov 10, 2023
Slide 1: Corporate Briefing Session
Corporate Briefing Session MERIT PACKAGING LIMITED November 10, 2023
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 Merit Packaging Limited (MPL) solely for information purposes. No representation or warranty express or implied is made thereto, and no reli
Slide 3: Lakson History
LAKSON HISTORY • Established in 1954 by Mr. Hasan Ali Karabhai as a trading concern • Grew organically over decades under the leadership and guidance of owners and sponsors • Group assets exceed USD 1 Billion • Domestic presence in more than 50 cities • International presence in UAE and USA • Employ
Slide 4: Lakson Group
LAKSON GROUP Corporate Briefing Session MERIT PACKAGING LIMITED November 10, 2023
Slide 5: About Us
ABOUT US • Established in 1980 • Experience of over 4 decades in the packaging industry • One of three companies in Pakistan with Offset and flexible packaging • Customer portfolio of local and multi-national corporations • European machines providing unmatched quality Corporate Briefing Session MER
Slide 6: Customer Portfolio
CUSTOMER PORTFOLIO * All trademarks are the property of the respective owners Corporate Briefing Session MERIT PACKAGING LIMITED November 10, 2023
Slide 7: Our Certifications
OUR CERTIFICATIONS * All trademarks are the property of the respective owners Corporate Briefing Session MERIT PACKAGING LIMITED November 10, 2023
Slide 8: Vision and Mission
VISION AND MISSION VISION Performing while transforming MISSION We are dedicated to providing sustainable packaging solutions that redefine industry standards and empower our partners’ success. Corporate Briefing Session MERIT PACKAGING LIMITED November 10, 2023
Slide 9: Values
VALUES Our values and priorities have helped our business to continue to forge ahead during the unprecedented challenges of the past year. Corporate Briefing Session MERIT PACKAGING LIMITED November 10, 2023
Slide 10: Our Culture
OUR CULTURE People are the core of our journey. We believe in the holistic well-being of our employees. Work-life balance Employee recognition Diversity Community engagement Mentorship Succession program planning Corporate Briefing Session MERIT PACKAGING LIMITED November 10, 2023
Slide 11: CSR Activities
CSR ACTIVITIES Blood Donation We believe in giving back to the society and Plantation CSR Ration community Drive Distribution 2023 Meat Distribution Corporate Briefing Session MERIT PACKAGING LIMITED November 10, 2023
Slide 12: Sustainable Packaging
SUSTAINABLE PACKAGING • Use of FSC-certified board • Water-based ink-reducing VOC foot- print • Production wastage sent to sister concern for recycling • Sourcing of raw materials from responsible plastic suppliers • Plastic waste is recycled to produce various plastic toys and utilities Corporate B
Slide 13: Production Facility: Offset Division
PRODUCTION FACILITY OFFSET DIVISION • High-end printing technology • Capacity to produce more than 1300 MT per month • State-of-the-art printing technology • Efficient post-press machines to support high- speed creasing & cutting and folding & gluing Corporate Briefing Session MERIT PACKAGING LIMITE
Slide 14: Production Facility: Gravure Division
PRODUCTION FACILITY GRAVURE DIVISION • State-of-the-art BOBST gravure printing machine • Capable of producing 9 color printing • Top-notch laminators and slitters • 3 Laminators, 2 Slitters, 2 Rewinders Corporate Briefing Session MERIT PACKAGING LIMITED November 10, 2023
Slide 15: Achievements Since 2021
ACHIEVEMENTS SINCE 2021 • Reduced losses from Rs. 565 million to Rs. 138 million despite unprecedented discount rates • Increased GP by 1,259% from a loss of 42 million to a profit of Rs. 492 million • Revenue expansion by 118.44% • Operating cash generation grew from negative Rs. 143 million to Rs.
Slide 16: Economic Challenges
ECONOMIC CHALLENGES • Decelerated growth due to multiple global geo-political factors including the Russia-Ukraine war. • Unprecedented inflation in FY 2023. • Rock-bottom reserves induced the government to curb imports which almost choked the LSM and recorded an 8.11% decline. • Record high discoun
Slide 17: Achievements in a Gloomy Economy
ACHIEVEMENTS IN A GLOOMY ECONOMY • Achieved production at maximum capacity during the months of August, September, and December. • Early repayment of long-term loans. • Growth in topline by 51.8% from last year. • Reduction in bottom line loss by 17.4%. • Made capital expenditures (including CWIP) o
Slide 18: Sponsor Support
SPONSOR SUPPORT • Unwavering support from sponsors in the shape of: Injection of funds through the right issue in FY 2022 of Rs. 1.4 billion Time-to-time rescheduling of sponsor loans Keeping sponsor loan interest-free New loan of Rs. 250 million offered by sponsors in FY 2021 Total sponso
Slide 19: Financial Summary
FINANCIAL SUMMARY VERTICAL ANALYSIS HORIZONTAL ANALYSIS 2023 2022 2023 2022 Rs. '000 % Rs. '000 % Rs. '000 % Rs. '000 % PROFIT & LOSS ACCOUNT PROFIT & LOSS ACCOUNT Sales - net 6,340,624 100% 4,181,647 100% Sales - net 6,340,624 52% 4,181,647 44% Cost of sales (5,849,026) -92% (3,928,730) -94% Cost o
Slide 20: Revenue
REVENUE 7,000 6,000 5,000 Rupees in million 4,000 3,000 6,341 2,000 4,182 2,860 2,903 1,000 2,158 - 2019 2020 2021 2022 2023 Corporate Briefing Session MERIT PACKAGING LIMITED November 10, 2023
Slide 21: EBITDA
EBITDA 600 500 468 400 Rupees in million 300 286 200 100 35 9 - 2019 2020 2021 2022 2023 (100) (167) (200) Corporate Briefing Session MERIT PACKAGING LIMITED November 10, 2023
Slide 22: Loss Per Share
LOSS PER SHARE 2019 2020 2021 2022 2023 - (1) (0.68) (0.84) (2) (3) (4) (3.85) Rupees (5) (6) (7) (7.01) (8) (9) (8.59) (10) Corporate Briefing Session MERIT PACKAGING LIMITED November 10, 2023
Slide 23: Outlook
OUTLOOK • Unstable commodity & oil prices due to • Russia-Ukraine conflict • Israel-Hamas war • Discount rate may start to decline by the last quarter • PKR parity depends on continued efforts against hoarders and the success of SBA with the IMF • Economic stability with Political stability expected
Slide 24: Corporate Briefing Session
Corporate Briefing Session MERIT PACKAGING LIMITED November 10, 2023
Merit Packaging — Investor Presentation (November 2023) on 6ix