HALF YEARLY REPORT DECEMBER 31, 2024
Complementing your Packaging am bitions with
our Packaging Expertise
TABLE OF CONTENTS
01 | Corporate Information | 2 |
02 | Directors' Report | 3 |
03 Review Report on Condensed Interim Financial Statements To The
Members Merit Packaging Limited | 4 | |
04 | Condensed Interim Statement of Financial Position | 5 |
05 | Condensed Interim Statement of Profit or Loss (Un-Audited) | 6 |
06 | Condensed Interim Statement of | |
Comprehensive Income (Un-Audited) | 7 | |
07 | Condensed Interim Statement of Changes in Equity (Un-Audited) | 8 |
08 | Condensed Interim Statement of Cash Flows (Un-Audited) | 9 |
09 | Notes to the Condensed Interim | |
Financial Statements (Un-Audited) | 10 |
HALF YEARLY REPORT 2025 1
CORPORATE INFORMATION
BOARD OF DIRECTORS | BANKERS - |
Mr. Iqbal Ali Lakhani (Chairman) | CONVENTIONAL |
Mr. Amin Mohammed Lakhani | |
Ms. Anushka Lakhani | Habib Bank Limited |
Mr. Aftab Ahmad | National Bank of Pakistan |
Mr. Farrukh Shauket Ansari | Soneri Bank Limited |
Mr. Ahmed Munaf | JS Bank Limited |
Mr. Sheikh Asim Rafiq | MCB Bank Limited |
ADVISOR | BANKERS - ISLAMIC |
Mr. Sultan Ali Lakhani | Meezan Bank Limited |
United Bank Limited - Ameen | |
AUDIT COMMITTEE | Al-Baraka Bank (Pakistan) Limited |
BankIslami Pakistan Limited | |
Mr. Sheikh Asim Rafiq (Chairman) | Dubai Islamic Bank Pakistan Limited |
Mr. Amin Mohammed Lakhani | Habib Bank Limited - Islamic Banking |
Mr. Farrukh Shauket Ansari | MCB Islamic Bank Limited |
HUMAN RESOURCE | SHARES REGISTRAR |
AND REMUNERATION | FAMCO Share Registration Services (Private) Limited |
8-F, Near Hotel Faran, Nursery, Block-6, P.E.C.H.S., | |
COMMITTEE | Shahra-e-Faisal, Karachi. |
Website:www.famcosrs.com | |
Mr. Sheikh Asim Rafiq (Chairman) | Email : info.shares@famcosrs.com |
Phone : (021) 34380101- 5 | Fax : (021) 34380106 | |
Mr. Amin Mohammed Lakhani | |
Mr. Amir Ahmed Chapra | |
Mr. Aftab Ahmad | REGISTERED & HEAD |
CHIEF EXECUTIVE | OFFICE |
OFFICER | Lakson Square, Building No. 2, Sarwar Shaheed Road, |
Karachi-74200, Pakistan. | |
Mr. Amir Ahmed Chapra | FACTORY |
CHIEF FINANCIAL | |
17-B, Sector 29, Korangi Industrial Area, Karachi. | |
OFFICER | MARKETING DIVISIONS |
Mr. Umair Ahmed | |
CONTACT US | |
UAN: +9221 38892147 Ext. 1014, 1008 | | |
COMPANY SECRETARY | Phone Number: 0341-2464451 |
Email: info@meritpack.com | Web: www.meritpack.com | |
Mr. Mansoor Ahmed | |
AUDITORS | |
BDO Ebrahim & Co. | |
Chartered Accountants |
2
MERIT PACKAGING LIMITED
DIRECTORS' REPORT TO THE MEMBERS
Dear Shareholders,
The Board of Directors is pleased to present the financial results of the Company for the half-year ended December 31, 2024.
Overview
During the half-year ended December 31, 2024, Global economic growth in late 2024 was moderate, with easing inflation. The US economy proved resilient, while China experienced moderate growth. Europe's economy, however, stagnated.
Pakistan's late 2024 economic landscape was mixed. Improved macroeconomic indicators, including eased inflation and a narrower fiscal deficit, offered cautious optimism. Growth rebounded, driven by agriculture and services, with large-scale manufacturing recovering contrasted with the slow trickle-down effect on purchasing power. Exports and remittances increased, boosting reserves. Ongoing fiscal consolidation and structural reforms aimed at stability and growth continued. However, challenges like high debt persisted, requiring further reforms for sustainable growth and poverty reduction. Global stability and effective domestic policies remain crucial for continued improvement.
The depressed PPP has led to weaker performance of FMCG products, impacting the Company's revenue.
Operating performance
In the half year under review, Net Revenue declined to PKR 3,052 million, a decrease of PKR 493 million (13.9%) compared to the same period last year. The gross margin also saw a reduction of PKR 89 million from the half year ended December 2023.
Operating profit similarly declined, reaching PKR 71 million, down by PKR 107 million (60%) from PKR 178 million in the same period last year. Despite this, a substantial decrease in financial charges helped contain the loss before tax to PKR 30 million, compared to PKR 37 million in the previous year's half year. This reduction in financial charges mainly results from the repayment of the Sponsors' Loan of PKR 1,200 million in May 2024.
The Company reported a net loss of PKR 68 million (LPS: Re. 0.34) for the half-year ended December 2024, slightly lower than
last year's net loss of PKR 82 million (LPS: Re. 0.41).
Future prospects
The IMF's projected 3% growth for Pakistan, coupled with a 9.5% average inflation rate, suggests a recovering economy. However, this recovery is contingent upon crucial structural reforms. Broadening the tax base, reforming the struggling energy sector, and other key measures are essential for long-term stability. While the near-term outlook is positive, it remains fragile, heavily reliant on both global economic conditions and the effectiveness of domestic policies. Specifically, the packaging industry's fortunes are closely linked to the performance of the FMCG sector, which itself is directly impacted by the purchasing power of the population, informal / unorganized sector growth. Our leadership team maintains a vigilant and proactive stance, closely monitoring these evolving dynamics. We are committed to implementing strategic initiatives that will empower the company to effectively navigate this complex landscape, ensuring resilience and preparedness in the face of potential challenges.
Acknowledgment
The management would like to express its gratitude to all customers, financial institutions, staff members, suppliers, and shareholders who have been associated with the Company for their continued support and cooperation. It would like to especially thank its sponsors for their continued support during the turbulent times and guidance to drive the Company towards growth and advancement.
On behalf of the Board of Directors
Iqbal Ali Lakhani | Amir Ahmed Chapra |
Chairman | Chief Executive |
Karachi: February 27, 2025 |
HALF YEARLY REPORT 2025
3
INDEPENDENT AUDITOR'S REPORT ON REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS TO THE MEMBERS MERIT PACKAGING LIMITED
Introduction
We have reviewed the accompanying condensed interim statement of financial position of MERIT PACKAGING LIMITED ("the Company") as at December 31, 2024 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, condensed interim statement of cash flows and notes to the condensed interim financial statements for the half year ended December 31, 2024 (here-in-after referred as the "condensed interim financial statements"). Management is responsible for the preparation and presentation of these interim financial statements in accordance with approved accounting standards as applicable in Pakistan for interim financial statements. Our responsibility is to express a conclusion on these interim financial statements based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Statements Performed by the Independent Auditor of the Entity." A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements is not prepared, in all material respects, in accordance with approved accounting and reporting standards as applicable in Pakistan for interim financial reporting.
Other matter
The figures for the quarters ended December 31, 2024 and December 31, 2023 in the condensed interim statement of profit or loss and condensed interim statement of other comprehensive income have not been reviewed and we do not express a conclusion on them.
The engagement partner on the review resulting in this independent auditor's report is Tariq Feroz Khan.
KARACHI | BDO EBRAHIM & Co. |
DATED:February 27, 2025 | CHARTERED ACCOUNTANTS |
UDIN: RR202410166EiKUPagb5 |
4 MERIT PACKAGING LIMITED
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31, 2024
ASSETS | Note |
NON-CURRENT ASSETS | |
Property, plant and equipment | 7 |
Operating fixed assets | |
Capital work in progress | 8 |
Right-of-use assets | |
Intangible assets | |
Long-term deposits | |
CURRENT ASSETS | |
Stores and spares | |
Stock-in-trade | 9 |
Trade debts | |
Loans and advances | |
Trade deposits and short-term prepayments | 10 |
Other receivables | |
Tax refund due from Government | |
Taxation - net | 11 |
Cash and bank balances | |
TOTAL ASSETS | |
EQUITY AND LIABILITIES | |
SHARE CAPITAL AND RESERVES | |
Authorized share capital | |
200,000,000 (June 30, 2024: 200,000,000) ordinary shares of Rs. 10/- each | |
Issued, subscribed and paid-up capital | |
199,958,000 (June 30, 2024: 199,958,000) ordinary shares of Rs. 10/- each | |
Capital reserve | |
Surplus on revaluation of property, plant and equipment | |
Share Premium | |
Revenue reserves | |
General reserves | |
Accumulated losses | |
Equity portion of loan - associated company | |
NON-CURRENT LIABILITIES | 12 |
Sub-ordinated loan | |
Long-term financing | 13 |
Lease liability | |
CURRENT LIABILITIES | |
Trade and other payables | |
Mark-up accrued | |
Short-term borrowings | |
Current portion of: | 13 |
Long-term financing | |
Long-term lease liability | |
Un-claimed dividend | |
TOTAL EQUITY AND LIABILITIES | |
CONTINGENCIES AND COMMITMENTS | 14 |
(Un-audited) | (Audited) |
December 31, | June 30, |
2024 | 2024 |
Rupees in thousands
2,890,010 2,805,924
64,399 115,560
2,954,409 2,921,484
133,000 140,062
106152
12,249 12,249
3,099,764 3,073,947
148,034 114,459
633,099 452,569
1,488,532 1,196,428
29,976 28,842
22,357 86,904
18,485 17,748
339,236 272,680
40,949 62,894
4,125 21,310
2,724,793 2,253,835
5,824,557 5,327,782
2,000,000 2,000,000
1,999,584 1,999,584
941,765 973,961
298,325 298,325
106,800 106,800
(1,280,724) (1,244,708)
691,149 789,950
2,756,899 2,923,912
250,000 143,634
-
46,824
136,673 142,388
386,673 332,846
1,759,356 | 1,295,864 | |
25,233 | 36,397 | |
797,422 | 640,312 | |
93,647 | 93,647 | |
5,198 | 4,675 |
129129
2,680,985 2,071,024
5,824,557 5,327,782
The annexed notes from 1 to 24 form an integral part of these condensed interim financial statements.
Iqbal Ali lakhani | Amir Ahmed Chapra | Umair Ahmed |
Director | Chief Executive Officer | Chief Financial Officer |
HALF YEARLY REPORT 2025
5
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS
FOR THE HALF YEAR AND QUARTER PERIOD ENDED DECEMBER 31, 2024 (UNAUDITED)
Note
Revenue - net | 15 |
Cost of sales |
Gross profit
Other income
General and administrative expenses
Selling and distribution expenses
Other operating expenses
Operating profit
Financial charges
Loss before income tax and levy
Levy
Loss before income tax
Taxation
Loss for the period
Half year ended December 31,
2024 2023
Rupees in thousands (Restated)
3,052,033 3,544,769
(2,854,084) (3,257,513)
197,949 287,256
14,551 9,143
(82,333) (68,014)
(53,517) (44,973)
(5,887) (5,444)
(127,186) (109,288)
70,763 177,968
(100,634) (215,267)
(29,871) (37,299)
(38,341) (44,424)
(68,212) (81,723)
--
(68,212) (81,723)
(Rupee) (Restated)
Quarter ended December 31,
2024 2023
Rupees in thousands (Restated)
1,532,247 1,790,240
(1,433,495) (1,659,545)
98,752 130,695
5,710 | 5,745 | ||
(38,041) | (37,539) | ||
(28,505) | (24,736) | ||
(3,025) | 3,442 | ||
(63,861) | (53,088) | ||
34,891 | 77,607 | ||
(48,748) | (107,992) | ||
(13,857) | (30,385) | ||
(19,379) | (22,084) | ||
(33,236) | (52,469) | ||
- | - | ||
(33,236) | (52,469) | ||
(Rupee) (Restated)
Loss per share - basic and diluted (Rupee) | 16 | (0.34) | (0.41) | (0.17) | (0.26) | ||||||
The annexed notes from 1 to 24 form an integral part of these condensed interim financial statements. |
Iqbal Ali lakhani | Amir Ahmed Chapra | Umair Ahmed |
Director | Chief Executive Officer | Chief Financial Officer |
6
MERIT PACKAGING LIMITED
CONDENSED INTERIM STATEMENT OF
COMPREHENSIVE INCOME
FOR THE HALF YEAR AND QUARTER PERIOD
ENDED DECEMBER 31, 2024 (UNAUDITED)
Half year ended December 31, | Quarter ended December 31, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Rupees in thousands | Rupees in thousands | |||||||||||
(Restated) | (Restated) | |||||||||||
Loss for the period | (68,212) | (81,723) | (33,236) | (52,469) | ||||||||
Other comprehensive income | - | - | - | - | ||||||||
Total comprehensive loss for the period | ||||||||||||
(68,212) | (81,723) | (33,236) | (52,469) |
The annexed notes from 1 to 24 form an integral part of these condensed interim financial statements.
Iqbal Ali lakhani | Amir Ahmed Chapra | Umair Ahmed |
Director | Chief Executive Officer | Chief Financial Officer |
HALF YEARLY REPORT 2025 7
8 MERIT PACKAGING LIMITED
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED DECEMBER 31, 2024 (UNAUDITED)
Issued, | Capital Reserves | Revenue Reserves | Equity | |||
Surplus on | ||||||
portion of | ||||||
subscribed | revaluation | Share | ||||
General | Accumulated | loan from | Total | |||
and paid-up | of property, | Premium | ||||
capital | plant and | Reserve | Reserve | losses | associated | |
equipment | company |
Rupees in thousands
Balance as at July 01, 2023 (Audited)
Total comprehensive income for the period ended December 31, 2023 Loss for the period (Restated)
Transferred from revaluation surplus on property, plant and equipment on account of incremental depreciation (Restated)
Transaction with owners
Equity portion of loan
Balance as at December 31, 2023 (Unaudited)
Balance as at July 01, 2024 (Audited)
Total comprehensive income for the period ended December 31, 2024 Loss for the period
Transferred from revaluation surplus on property, plant and equipment on account of incremental depreciation
Transaction with owners
Equity portion of loan
Balance as at December 31, 2024 (Unaudited)
1,999,584 | 2,198,989 | 298,325 | 106,800 | (2,274,388) | 622,382 | 2,951,692 |
- | - | - | - | (81,723) | - | (81,723) |
- | (39,031) | - | - | 39,031 | - | - |
- | - | - | - | - | 223,079 | 223,079 |
1,999,584 | 2,159,958 | 298,325 | 106,800 | (2,317,080) | 845,461 | 3,093,048 |
1,999,584 | 973,961 | 298,325 | 106,800 | (1,244,708) | 789,950 | 2,923,912 |
- | - | - | - | (68,212) | - | (68,212) |
- | (32,196) | - | - | 32,196 | - | - |
- | - | - | - | - | (98,801) | (98,801) |
1,999,584 | 941,765 | 298,325 | 106,800 | (1,280,724) | 691,149 | 2,756,899 |
The annexed notes from 1 to 24 form an integral part of these condensed interim financial statements.
Iqbal Ali lakhani | Amir Ahmed Chapra | Umair Ahmed |
Director | Chief Executive Officer | Chief Financial Officer |
CONDENSED INTERIM STATEMENT OF CASH FLOWS
FOR THE HALF YEAR PERIOD ENDED DECEMBER 31, 2024 (UNAUDITED)
December 31, | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | Note | 2024 | 2023 | |||||
Rupees in thousands | ||||||||
Cash generated from operations | 17 | 207,451 | ||||||
139,760 | ||||||||
Taxes paid - net | (16,395) | (45,917) | ||||||
Financial charges paid | (88,426) | (130,279) | ||||||
Net cash generated from operating activities | 34,939 | 31,255 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchase of property, plant and equipment | (141,410) | (100,692) | ||||||
Net cash used in investing activities | (141,410) | (100,692) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Repayment of long-term financing | (46,824) | (98,075) | ||||||
Payment against lease liability | (21,000) | - | ||||||
Net cash used in financing activities | (67,824) | (98,075) | ||||||
Net decrease in cash and cash equivalents | (174,295) | (167,512) | ||||||
Cash and cash equivalents at beginning of the period | (619,002) | (671,036) | ||||||
Cash and cash equivalents at end of the period | (793,297) | (838,548) | ||||||
CASH AND CASH EQUIVALENTS: | ||||||||
Cash and bank balances | 11 | 4,125 | 12,970 | |||||
Short-term borrowings | (797,422) | (851,518) | ||||||
(793,297) | (838,548) |
The annexed notes from 1 to 24 form an integral part of these condensed interim financial statements.
Iqbal Ali lakhani | Amir Ahmed Chapra | Umair Ahmed |
Director | Chief Executive Officer | Chief Financial Officer |
HALF YEARLY REPORT 2025
9
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