Towellers Ltd. · PSX:TOWL
Towellers — Investor Presentation (November 2024)
70 slides from Towellers's investor presentation, November 2024
Slide 1: Towellers Limited Corporate Briefing Session 2024
TOWELLERS LIMITED CORPORATE BRIEFING SESSION 2024
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 is estimated to be worth around $1,976.84 billion in 2024. The textile industry is expected to grow at a compound annual v growth rate (CAGR) of 7.43% from 2024 to 2033. Pakistan is the 10th largest exporter of Textile commodities
Slide 5: Industry facts & figures
Industry facts & figures During the year Pakistan's textile and apparel exports increased by 0.93% to $16.655 billion, contributing 54.29% to the country's total exports as compared to US$ 16.50 billion in the previous year. v This modest increase highlights the challenges faced by the sector, i
Slide 6: Industry facts & figures
Industry facts & figures The government has recently increased the tax rate on exporters’ personal income for the fiscal year 2024-25, a move that industry analysts predict will impact export figures in the upcoming months. v The textile industry is Pakistan’s largest manufacturing sector employ
Slide 7: Industry performance during the ongoing year 2024
Industry performance during the ongoing year 2024 The country’s textile group exports increased by 10.44 per cent in first four months (July-October) of the current fiscal year 2024-25 and remained at $6.146 billion as compared to $5.565 billion during the same period of last fiscal year, the Paki
Slide 8: 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 9: Some of the manufacturing processes are as follows:
Some of the manufacturing processes are as follows:
Slide 10: Knitting Section
Cc 2 p O cD) YN Q0 Cc Ss & Cc =
Slide 11: Checking Area
Checking Area
Slide 12: Packaging Area
Packaging Area
Slide 13: Cutting Machine
Cutting Machine
Slide 14: Screen Printing Machine
Screen Printing Machine
Slide 15: SWOT Analysis of Towellers Limited
SWOT ANALYSIS OF TOWELLERS LIMITED
Slide 16: 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 17: 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 18: 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 19: Opportunities (Contd)
OPPORTUNITIES (Contd) Due to political instability in neighboring countries such as Bangladesh, we have an opportunity to secure more share out of the textile export market since some orders may divert to other textile supplying countries. We can capitalize on this opportunity and improve our growth
Slide 20: Threats
THREATS Political instability still persists and continued unrest can affect the business atmosphere throughout the Country. The Government again was not able to meet its targets of revenue collection, which may trigger more direct or indirect taxes consequently increasing the cost of inputs or fur
Slide 21: 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 28: 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 29: Major Investments Made by the Company
MAJOR INVESTMENTS MADE BY THE COMPANY
Slide 30: 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 state of the art European machines such as Stenter Machine, Raising Machine, Airflow drying machine, washing &
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Slide 32: Oval Printing Machine
Oval Printing Machine
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Slide 34: su Suzie
su Suzie
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Slide 38: ‘ ay rrr pyre
‘ ay rrr pyre
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Slide 44: 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. Besides reducing power costs, the investments are h
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Slide 47: Health, Safety, Environment & Sustainability
Health, Safety, Environment & Sustainability The Company is determined in its commitment to safeguard a healthy environment for all, by diligently adhering to environmental standards at our production facilities. Our dedication to responsible business practices extends throughout our value chain.
Slide 48: Health, Safety, Environment & Sustainability (Contd)
Health, Safety, Environment & Sustainability (Contd) The company has hired a specialist mental therapist to assess, recover and protect mental health of its staff and workers. The Company also conducts and participate in blood donation drives at regular intervals. The Company has covered its entir
Slide 49: Health, Safety, Environment & Sustainability (Contd)
Health, Safety, Environment & Sustainability (Contd) Textile manufacturing particularly dying and printing processes can cause significant harm to the environment, if adequate measures are not taken to mitigate hazardous effect of textile process. The company is deeply concerned and has establishe
Slide 50: Company's performance during the year 2024
Company’s performance during the year 2024 Towellers has achieved a growth of 11.8% in sales during the current year and have crossed the milestone of Rs. 12 B. Total turnover achieved is Rs. 12.32 B as compared to Rs. 11.01 B last year. The gross and net margins are 12.48% & 7% respectively which
Slide 51: Company's performance during the first quarter of 2025
Company’s performance during the first quarter of 2025 The turnover during the first quarter has declined as compared to the turnover of corresponding period during the last year. The Company has achieved the sales turnover of Rs. 3.63 Billion,vshowing a decline of 6.8% as compared to the same peri
Slide 52: Company's outlook for 2nd and 3rd Quarter
Company’s outlook for 2nd and 3rd Quarter • Uncertain domestic political and economic conditions are already affecting the business in general. High cost of doing business has already impacted the profitability of the Company. Increased taxes and change in taxation regime for exporters is further go
Slide 53: Outlook of the company for the year 2024-25
Outlook of the company for the year 2024-25 During the first quarter the Company has achieved a negative growth of 6.8%. The Company has set a challenging annual target of 8.9% growth during the year, which may or may not be achieved. However, the Company is striving hard to achieve this growth tar
Slide 54: Outlook of the company for the year 2024-25
Outlook of the company for the year 2024-25 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 55: Financial Performance
FINANCIAL PERFORMANCE
Slide 56: Comparative Annual Financial Results - Growth 11.84%
COMPARATIVE ANNUAL FINANCIAL RESULTS GROWTH 11.84%
Slide 57: Comparative annual financial results
Comparative annual financial results Rs. in Millions Growt 2024 2023 2022 2021 2020 2019 2018 h% Revenu 3.73 44.48 42.88 55.84 31.88 23.61 27.12 22.68 e in US$ Revenu 11.84 12,314.9 11,086.9 10,238.0 5,220.7 3,772.2 3,848.2 2,605.8 e in 2 2 9 5 5 8 1 PKR PAT (76.6) 559.50 2,388.3 1,063.05 556.46 275
Slide 58: Comparative Quarterly Financial Results
Comparative Quarterly Financial Results Rs. in Millions Growth Jul-Sep, Jul-Sep, Jul-Sep, Jul-Sep, Jul-Sep, Jul-Sep, Jul- % 2024 2023 2022 2021 2020 2019 Sep, 2018 Revenu (1.14) 13.10 13.25 12.74 14.07 7.81 6.75 7.42 e in US$ Revenu (6.80) 3,634.44 3,899.69 3,078.62 2,369.51 1,325.99 1,066.74 962.10
Slide 59: Year Wise Comparison Of Sales & Profitability
Year Wise Comparison Of Sales & Profitability Rs in Millions 2024 2023 2022 2021 2020 2019 2018 2017 Sales 12,314.92 11,086.92 10,238.09 5,220.75 3,772.25 3,848.28 2,605.81 2,686.14 Turnover PAT 559.50 2,388.34 1,063.05 556.46 275.89 397.5 253.61 61.70 EPS 32.91 140.49 62.53 32.73 16.23 23.38 14.92
Slide 60: Year Wise Comparison Of Sales & Profitability (Contd)
Year Wise Comparison Of Sales & Profitability (Contd) Sales Comparison over the years 14,000.00 12,314.92 11086.92 12,000.00 10238.09 10,000.00 8,000.00 5220.75 6,000.00 3772.25 3848.28 4,000.00 2605.81 2,000.00 0.00 Sales Turnover (Rs. In Millions) 2024 2023 2022 2021 2020 2019 2018
Slide 61: 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 559.5 556.46 397.5 500 275.89 253.61 0 2024 2023 PAT (Rs.2022 2021 In Millions) 2020 2019 2018
Slide 62: 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 32.91 32.73 40 23.38 16.23 14.92 20 3.63 0 EPS 2024 2023 2022 2021 2020 2019 2018 2017
Slide 63: Outlook Of The Company For June 2025
Outlook Of The Company For June 2025 Rs. in Millions Outlook Actual Actual Actual Actual Actual Actual June June June June June June June 2025 2024 2023 2022 2021 2020 2019 Revenue 48.01 44.48 42.88 55.84 31.88 23.61 27.12 in US$ Revenue 13,345.3 12,314.9 11,086.9 10,238.0 5,220.75 3,772.25 3,848.28
Slide 64: Six Years at Glance from 2018 to 2023
SIX YEARS AT GLANCE FROM 2018 TO 2023 Rs. In Thousands Income Statement 2024 2023 2022 2021 2020 2019 Turn over-Net 12,314,921 11,086,916 10,238,086 5,220,747 3,772,254 3,848,285 Cost of sales 11,082,813 7,944,316 8,151,154 4,109,212 3,071,384 2,985,218 Gross profit / (loss) 1,232,108 3,142,600 2,08
Slide 65: Financial Position
Rs. In Financial Position Thousands 2024 2023 2022 2021 2020 2019 Fixed assets 5,603,824 3,250,949 3,142,611 1,810,526 1,663,761 1,231,256 Long term loans 22,164 19,250 20,487 19,501 16,861 12,851 Long term deposits 29,780 44,271 35,321 29,349 16,875 19,755 Current assets 6,273,528 6,667,455 4,632,0
Slide 66: Key Ratios
Key Ratios 2024 2023 2022 2021 2020 2019 Gross margin% 10.01 28.35 20.38 21.29 18.58 22.43 Net profit (loss)% 4.54 21.54 10.38 10.66 7.31 10.46 Quick ratio% 1.82 2.23 1.36 0.91 1.32 1.20 EBIT margin% 6.29 23.76 11.80 11.87 8.52 11.89 Current ratio% 2.41 2.98 2.06 2.89 2.76 2.51 Earning/(loss) per sh
Slide 67: Dividend
DIVIDEND Despite much reduced profit margins during the current year and substantial investments made in capital expenditure, the Company announced 80% dividends, which were distributed during the first week of November exhibiting its commitment towards its shareholders. The Company wants to thank
Slide 68: 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 69: Corporate Social Responsibilities (Contd)
Corporate Social Responsibilities (Contd) • The Company not only continued to distribute ration packets to the needy people within and outside the Company, it keeps its focus on other areas such as health, mental health, education, animal welfare and environment. The Company also supports its deserv
Slide 70: 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