Moving
FORWARD
HALF YEARLY REPORT DECEMBER 2024
Contents
Company Information | 02 |
Directors' Report | 03 |
Directors' Report (Urdu) | 05 |
Independent Auditor's Review Report | 07 |
Unconsolidated Condensed Interim Statement of Financial Position | 08 |
Unconsolidated Condensed Interim Statement of Profit or Loss | 09 |
and Other Comprehensive Income | |
Unconsolidated Condensed Interim Statement of Changes In Equity | 10 |
Unconsolidated Condensed Interim Statement of Cash Flows | 11 |
Notes to the Unconsolidated Condensed Interim Financial Statements | 12 |
Consolidated Financial Statements | 24 |
COMPANY INFORMATION
BOARD OF DIRECTORS
Mr. Munis Abdullah | Chairman |
Mr. Abdul Samad | Independent Director |
Ms. Tayyaba Rasheed | Independent Director |
Mr. Syed Nadeem Ahmed | Chief Executive Officer |
Mr. Zubair Razzak Palwala | Non-Executive Director |
Ms. Faiza Naeem | Non-Executive Director |
Mr. Rizwan Ahmad | Executive Director |
AUDIT COMMITTEE
Ms. Tayyaba Rasheed | Chairperson |
Mr. Zubair Razzak Palwala | Member |
Ms. Faiza Naeem | Member |
HUMAN RESOURCE & REMUNERATION COMMITTEE
Mr. Abdul Samad | Chairman |
Mr. Syed Nadeem Ahmed | Member |
Mr. Zubair Razzak Palwala | Member |
CHIEF FINANCIAL OFFICER
Mr. Mehboob Yasin
COMPANY SECRETARY
Ms. Mahnoor Zulfiqar
INTERNAL AUDITORS
Grant Thornton Anjum Rahman,
Chartered Accountants
EXTERNAL AUDITORS
A.F. Ferguson & Company,
Chartered Accountants
LEGAL ADVISOR
Abdul Karim Khan & Company
BANKERS
Habib Bank Limited
Bank Al-Habib Limited
Silkbank Limited
Meezan Bank Limited
Al Baraka Bank Pakistan Limited
Habib Metropolitan Bank Limited
Telenor Microfinance Bank
REGISTERED OFFICE
2nd Floor, One IBL Center, Block No. 7 & 8, DMMCHS, Shahrah-e-Faisal, Karachi-75530 Tel: 37170183,
Fax: 35635530, 35682772
SHARE REGISTRAR
CDC Share Registrar Services Limited
CDC House, 99-B, Block-B, SMCHS
Shahra-e-Faisal, Karachi - 74400
WEBSITE
www.ubrands.biz
02 UNITED BRANDS LIMITED| HALF YEARLY REPORT
DIRECTORS' REPORT
The Directors of United Brands Limited present their report together with the unconsolidated condensed interim financial information (unaudited) for six months period ended December 31, 2024. The Directors' Report is prepared in accordance with Section 227 of the Companies Act, 2017.
PRINCIPAL ACTIVITIES
The principal activities of the Company are trading and distribution of consumer goods and allied products.
SUMMARY OF FINANCIAL PERFORMANCE | December 31, | December 31, |
2024 | 2023 | |
(Rupees in '000) | ||
Revenue | 597,253 | |
769,163 | ||
Gross profit | 108,380 | 98,030 |
Gross Profit (% of revenue) | 14.09% | 16.41% |
Operating profit / (loss) | 12,937 | (17,495) |
Loss for the period | (370) | (47,206) |
FINANCIAL OVERVIEW
During the period, the Company's revenue was increased by 28.78% compared to last period. This was primarily due to induction of new brands. Moreover, the Company successfully adopted strategies to expand its current customer range.
On the cost management front, the Company remained focused on aligning its operating expenses with the existing business scale, resulting in modest reduction of PKR 27.21 million.
On a positive note, finance costs were significantly reduced by 56.65%, reflecting the proactive repayment of financing facilities and prudent liquidity management, which strengthened our financial position and provided greater operational flexibility.
HOLDING COMPANY
International Brands (Private) Limited is the holding Company of United Brands Limited. As at December 31, 2024, International Brands (Private) Limited held 88,200,462 shares of PKR 10 each (96.08%).
BASIC / DILUTED EARNINGS PER SHARE
Basic / diluted loss per share for six months period ended December 31, 2024 was PKR (0.004) (December 31, 2023: PKR (0.5142)).
STATEMENT OF ETHICS AND BUSINESS PRACTICES
Performance with integrity is central to operating at United Brands Limited. The Board of Directors have adopted principle of ethics and integrity as the focal value for the organization.
DECEMBER 2024 | UNITED BRANDS LIMITED03
DIRECTORS' REPORT
All employees are informed and aware of it and are required to observe these rules of conduct in relation to business and regulations.
FUTURE OUTLOOK
The economic environment in Pakistan remains complex, with escalating operational costs and evolving consumer behaviors driven by a reduction in disposable incomes. These challenges continue to shape the market dynamics, but we remain confident in the long-term growth potential within the consumer and logistics sectors.
In response to these shifting conditions, our Company has taken proactive steps to diversify its revenue streams, focusing on securing new local accounts to mitigate the impact of subdued import activities. This strategic pivot towards deepening local partnerships and exploring emerging market opportunities is strongly supported by the Board of Directors, who are committed to driving the Company's resilience and growth in these uncertain times.
We firmly believe that with a forward-thinking approach, we can not only protect but also enhance shareholder value, while delivering exceptional service to our customers.
ACKNOWLEDGMENT
The Directors would like to express their heartfelt gratitude to all our stakeholders for their unwavering support and collaborative spirit, which will be instrumental as we navigate these challenges and pursue sustainable, long-term growth.
Karachi
Date: February 27, 2025
Syed Nadeem Ahmed | Zubair Razzak Palwala | |
Chief Executive Offificer | Director |
04 UNITED BRANDS LIMITED| HALF YEARLY REPORT
DECEMBER 2024 | UNITED BRANDS LIMITED05
06 UNITED BRANDS LIMITED| HALF YEARLY REPORT
DECEMBER 2024 | UNITED BRANDS LIMITED07
UNITED BRANDS LIMITED
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31, 2024 | |
ASSETS | Note |
NON-CURRENT ASSETS | |
Property and equipment | |
Investment in subsidiary | |
CURRENT ASSETS | |
Inventories | 4 |
Trade and other receivables | 5 |
Prepayments and advances | 6 |
Taxation - payments less provision | |
Tax refund due from Government - sales tax | 7 |
Accrued interest | |
Cash and bank balances | |
TOTAL ASSETS | |
EQUITY AND LIABILITIES | |
EQUITY | |
Share capital | |
Accumulated losses | |
LIABILITIES | |
Trade and other payables | 8 |
Short-term borrowing | 9 |
Accrued mark-up | |
Unclaimed dividend | |
TOTAL LIABILITIES | |
CONTINGENCIES AND COMMITMENTS | 10 |
TOTAL EQUITY AND LIABILITIES |
(Unaudited) (Audited) December 31, June 30,
2024 2024
------ Rupees in '000 ------
3,412 4,076
25,000 25,000
28,412 29,076
464,485 505,384
326,936 273,762
12,206 18,498
31,827 30,923
33,239 76,564
392 551
44,175 75,368
913,260 981,050
941,672 1,010,126
918,000 | 918,000 | ||
(1,086,204) | (1,085,834) | ||
(168,204) | (167,834) | ||
1,010,553 | 1,077,534 | ||
97,352 | 98,108 | ||
1,618 | 1,965 |
353 353
1,109,876 1,177,960
1,109,876 1,177,960
941,672 1,010,126
The annexed notes 1 to 18 form an integral part of these unconsolidated condensed interim financial statements.
Chief Executive Officer | Director | Chief Financial Officer |
08 UNITED BRANDS LIMITED| HALF YEARLY REPORT
UNITED BRANDS LIMITED
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED)
FOR THE HALF YEAR ENDED DECEMBER 31, 2024
Half Year ended | Quarter ended | |||||||||||||
December 31, | December 31, | |||||||||||||
December 31, | ||||||||||||||
December 31, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
(Restated) | (Restated) | |||||||||||||
Note | ------------------------------ | Rupees in '000 ------------------------- | ||||||||||||
Revenue from contracts with customers 11 | 769,163 | 597,253 | 346,672 | 299,916 | ||||||||||
Cost of sales | (660,783) | (499,223) | (300,975) | (245,519) | ||||||||||
Gross profit | 108,380 | 98,030 | 45,697 | 54,397 |
Marketing and distribution expenses Administrative and general expenses Loss allowance on trade receivables Other operating income / (expenses) Other income
Profit / (loss) from operations
Finance costs | 12 |
Profit / (loss) before levies and income tax
Levies - minimum tax | 13 |
Profit / (loss) before income tax | |
Income tax expense | 14 |
Loss for the period
Other comprehensive income
Total comprehensive Loss for the period
Basic and diluted loss per share (Rupees)
(75,146)
(16,809)
(6,839)
1,117
2,234
12,937
(11,398)
1,539
(1,377)
162
(532)
(370)
-
(370)
(0.0040)
(95,392)
(20,741)
(702)
(1,912)
3,222
(17,495)
(26,295)
(43,790)
(2,719)
(46,509)
(697)
(47,206)
-
(47,206)
(0.5142)
(38,340)
(8,981)
(6,839)
1,117
2,225
(5,121)
(5,468)
(10,589)
103
(10,486)
1,505
(8,891)
-
(8,891)
(0.0978)
(48,252)
(16,207)
(702)
(1,912)
3,189
(9,487)
(10,386)
(19,873)
(1,976)
(21,849)
(697)
(22,546)
-
(22,546)
(0.2456)
The annexed notes 1 to 18 form an integral part of these unconsolidated condensed interim financial statements.
Chief Executive Officer | Director | Chief Financial Officer |
DECEMBER 2024 | UNITED BRANDS LIMITED09
| Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |