Corporate Briefing Session - 2024
December 17th, 2024
Table of Contents
- Company Overview
- Economic Overview
- Strategic / Operational Developments
- Financial Results for 2023
- Financial Results for Q3-2024
- Q&A
Company Overview
Incorporated on | |
July 02, 1948 | |
Other segments | 1962 - Set up |
manufacturing | |
(mainly includes | facility in Karachi |
general health and | and listed as public |
diabetes care) | limited company |
in 1982 | |
Abbott Laboratories | |
(Pakistan) Limited |
Diagnostics | Pharmaceuticals |
Nutritional
Two manufacturing
facilities
1,430 Employees
> 150 Products
PAKISTAN - MACRO ECONOMIC OVERVIEW
Gross Domestic Product Growth (GDP%) | |||||||||||
8% | |||||||||||
7% | 6.10% | 5.77% | 6.10% | ||||||||
6% | |||||||||||
Target | |||||||||||
5% | 4.56% | 4.61% | |||||||||
4.10% | |||||||||||
3.60% | |||||||||||
4% | Growth Projection | 3.12% | |||||||||
3% | for FY25: | 2.38% | |||||||||
SBP: 2.5-3.5%% | |||||||||||
2% | |||||||||||
IMF: 3.2% | |||||||||||
1% | WB: 2.8% | -0.29% | |||||||||
0% | Target FY25 - 3.6% | ||||||||||
-0.94% | |||||||||||
-1% | |||||||||||
-2% | |||||||||||
FY15 | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
Current Account | 0.22 | ||
Deficit | 1.53 | ||
Workers' | 11.85 | ||
remittance | 8.79 | ||
Trade Deficit | 8.32 | ||
7.00 | |||
Import of Goods | 18.83 | ||
16.67 | |||
Export of Goods | 10.51 | ||
9.67 | FY25 | FY24 | |
Growth of Pakistan:
- GDP growth FY24 - posted a growth of 2.38% in FY2024 against target of 5%. The prudent policy management and the resumption of inflows from multilateral and bilateral partners, and the gradual economic recovery in the major trading partners, turned the negative growth in FY2023 to positive growth in FY2024.
- Outlook for growth FY25 - GoP target at 3.6% while SBP expectation is between 2.5%-3.5%due to
Longstanding inefficiencies in the country's energy sector, which have resulted in the accumulation of circular debt.
Current Account Deficit- FY25-4M
- CAD surplus of $218 million (4MFY25), in contrast to a massive deficit of $1.528 billion in the wake of strong inflows of workers' remittances YoY 35% increase and improvement in export earnings.
- Imports - Imports in 4MFY25 also rose by 12.95% to $18.83 billion from $16.67 billion
- Exports - Exports in 4MFY25 increased by 18.85% to $10.51 billion from $9.67 billion
- Workers' Remittance - The country's worker remittances clocked in at $11.85 billion, an increase of nearly 35% as compared to $8.79 billion in same period last year.
FISCAL LANDSCAPE
FBR REVENUE COLLECTION | Rs bln | |||||||||||||
Rs. Billion | ||||||||||||||
5,000 | 4,019 | |||||||||||||
4,000 | ||||||||||||||
3,000 | 2,438 | 2,483 | ||||||||||||
2,000 | 1,406 | |||||||||||||
1,000 | ||||||||||||||
- | ||||||||||||||
FY 24 (1QFY24) | FY 25 (1QFY25) | |||||||||||||
Revenue | Expenditure | |||||||||||||
FISCAL Update | ||||||||||||||
8 | Rs. trillion | |||||||||||||
6 | 5.827 | |||||||||||||
3.648 | 4.131 | |||||||||||||
4 | ||||||||||||||
2.685 | ||||||||||||||
2 | 1.7 | |||||||||||||
0 | ||||||||||||||
2023-2024 Q1 | 2024-2025 Q1 | |||||||||||||
-2 | -0.963 | |||||||||||||
Revenue | Expenditure | Deficit/Surplus | ||||||||||||
- FBR revenue collection: During Jul-Sep FY2025, the net federal revenues grew by 186 percent to Rs 4,019 billion from Rs 1,406 billion same period last year. This was on account of various measures taken by the Government to improve tax revenue.
- Fiscal Update: Pakistan has posted a fiscal surplus of Rs 1.69 trillion or 1.4% of GDP and a primary surplus of Rs 3 trillion or 2.4% of GDP for the first quarter of Fiscal Year 2025 (1QFY25), the first since the second quarter of FY04. The surplus was primarily driven by an impressive profit contribution from the State Bank of Pakistan (SBP), which amounted to Rs 2.5 trillion
- Non-taxcollection: the government collected Rs 3.051 trillion in non-tax collection, registering a massive growth of 551% compared to Rs 469 billion collected in the same quarter last fiscal.
MONETARY LANDSCAPE & CURRENCY OUTLOOK
CPI & POLICY RATE TREND
36.00% | |||||||||||||||||
32.00% | |||||||||||||||||
28.00% | |||||||||||||||||
24.00% | |||||||||||||||||
20.00% | 15.00% | ||||||||||||||||
16.00% | |||||||||||||||||
12.00% | 4.90% | ||||||||||||||||
8.00% | |||||||||||||||||
4.00% | |||||||||||||||||
Jan-23 | Feb-23 | Mar-23 | Apr-23 | May-23 | Jun-23 Jul-23 Aug-23 Sep-23 | Oct-23 | Nov-23 | Dec-23 | Jan-24 Feb-24 Mar-24 Apr-24 May-24 | Jun-24 | Jul-24 | Aug-24 | Sep-24 | Oct-24 Nov-24 | |||
Inflation | Policy Rate | ||||||||||||||||
USD / PKR Parity
285.09 | 298.93 | 306.98 | 281.13 | 278.12 | 278.54 | |
278.05 | ||||||
276.58 | 276.46 | 277.03 | 277.85 | |||
259.92 | 283.85 | 278.50 | 278.44 |
226.95
230.89
Jan-23 | Feb-23 | Mar-23 | Apr-23 | May-23 | Jun-23 | Jul-23 | Aug-23 | Sep-23 | Oct-23 | Nov-23 | Dec-23 | Jan-24 | Feb-24 | Mar-24 | Apr-24 | May-24 | Jun-24 | Jul-24 | Aug-24 | Sep-24 | Oct-24 | Nov-24 | Dec-24 |
CPI & POLICY RATE TREND
- Expansionary Monetary policy: Central bank has brought down the interest rate to 15% from an unprecedented 22% in four intervals since June.
- Policy rate: Expected to reduced by 200bps in next Monetary Policy.
- CPI : Pakistan's annual consumer price index inflation rate was
4.9% in November 2024 compared to 7.2% in the previous month and 29.2% in November 2023
USD/PKR MOVEMENT
- PKR remained stable for 12 months since November 2023.
- Pakistan's remittances from its overseas workers jumped to $14.8 billion in the five months of the fiscal year 2025, a 33.6% increase from a year earlier
- CURRENCY OUTLOOK
- The rupee to stay stable in the days ahead due to adequate dollar liquidity available in the market supported by healthy remittances
- Current Account is expected to clock in a surplus
- The ongoing improvement in the external current account due to higher remittances and a gradual recovery in exports helped increase the forex reserves
STRATEGIC / OPERATIONAL DEVELOPMENTS
Deregulation of Non-Essential Drugs
- During the year, Government of Pakistan approved De-Regulation of drug prices which are not included in National Essential Medicine List (NEML).
- In view of this development, the industry took price increases on its non-essential portfolio to restore the viability of products, some of which had been discontinued citing adverse margins.
- The aforesaid deregulation of non-essentials drugs has already been challenged in the Lahore High Court.
- Abbott remains committed to acting responsibly, prioritizing patient interest whilst contemplating price adjustments following this deregulation.
Financial Results - 2023
Key Highlights - FY2023
- Overall revenue of the Company increased by 13% reaching
Rs. 55.48 bn. - Decrease in profitability mainly on account of increase in product cost and rupee devaluation.
- Earnings per share was Rs. 2.67 per share (2022: Rs. 30.69 per share).
Rs. 55.48 bn
Sales Revenue
21%
Gross Profit
Margin
13%
Sales Growth
0.5%
Net Profit
Margin
Revenue Analysis - FY23
Annual revenue | ||
56,000 | 55,475 | |
55,000 | 13% | |
54,000 | ||
millions | 53,000 | |
52,000 | ||
in | 51,000 | |
50,000 | ||
PKR | 49,258 | |
49,000 | ||
48,000
47,000
46,000
20222023
- Pharmaceutical sales increased by 20% driven by performance of established brands.
- Nutrition sales decreased by 8%, primarily driven by lower volumes.
- Diagnostics segment registered an organic growth of 16%.
Segment wise Revenue | |||
(PKR in millions) | |||
Segment | 2023 | 2022 | % Change |
Pharmaceutical | 37,783 | 31,486 | 20% |
Nutritional | 11,414 | 12,365 | -8% |
Diagnostics | 4,774 | 4,133 | 16% |
Others | 1,504 | 1274 | 18% |
Total | 55,475 | 49,258 | 13% |
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