Content
Company Information | 02 |
Directors' Review | 03 |
Condensed Interim Statement of Financial Position (Un-audited) | 04 |
Condensed Interim Statement of Profit or Loss (Un-audited) | 05 |
Condensed Interim Statement of Comprehensive Income (Un-audited) | 06 |
Condensed Interim Statement of Cash Flows (Un-audited) | 07 |
Condensed Interim Statement of Changes in Equity (Un-audited) | 08 |
Notes to the Condensed Interim Financial Statements (Un-audited) | 09 |
01 Quarterly Report September 30, 2024
Company Information | |||
Board of Directors | Statutory Auditors | ||
Dr. Salomon Jacobus Van Rooijen | BDO Ebrahim & Co. Chartered | ||
Accountants | |||
Chairman, Non-Executive Director | |||
Mr. Mubashir Hasan Ansari | Chief Financial Officer | ||
Executive Director & Chief Executive Officer | Mr. Ata-ur-Rehman Shaikh | ||
Mrs. Feriel Ali-Mehdi | Company Secretary | ||
Non-Executive Director | |||
Mr. Saad Amanullah Khan | Mr. Muhammad Shahid | ||
Non-Executive Director | Secretary HR&R Committee | ||
Mr. Muhammad Irfan-ul-Haq | Mr. Aneel Arshad Ali | ||
Non-Executive Director | Head of Internal Audit | ||
Mr. Muhammad Salman H. Chawala | |||
Mr. Syed Abid Raza Rizvi | |||
Independent, Non-Executive Director | |||
Mr. Ahsan Rashid | Legal Advisors | ||
Independent, Non-Executive Director | A. Qadir & Company | ||
Board Audit Committee | Registered Office | ||
Mr. Muhammad Salman H. Chawala | Ground Floor, Bahria Complex III, | ||
Chairman | M. T. Khan Road, Karachi - Pakistan. | ||
Mrs. Feriel Ali-Mehdi | Tel: +9221 35630251-60 | ||
Fax: +9221 35630266 | |||
Member | Website: www.zil.com.pk | ||
Mr. Ahsan Rashid | Email: Info@zil.com.pk | ||
Member | Factory | ||
Human Resource and Remuneration | Link Hali Road, Hyderabad - 71000 | ||
Committee | Bankers | ||
Mr. Ahsan Rashid | Dubai Islamic Bank | ||
Chairman | |||
Habib Bank Limited | |||
Mrs. Feriel Ali-Mehdi | MCB Bank Limited | ||
Meezan Bank Limited | |||
Member | |||
National Bank of Pakistan Limited | |||
Mr. Saad Amanullah Khan | Soneri Bank Limited | ||
United Bank Limited | |||
Member | Standard Chartered Bank | ||
Mr. Mubashir Hasan Ansari | Shares Registrar | ||
Member | THK Associates (Pvt) Limited | ||
Plot No. 32, Jami Commercial Street 2, | |||
D.H.A., Phase VII, | |||
Karachi. | |||
Ph: (021) 111-000-322 | |||
Quarterly Report September 30, 2024 | |||
02 | |||
Directors' Review
The Board of Directors of ZIL Limited is pleased to announce the unaudited financial results of the Company for the nine-month period ended Sep 30, 2024.
Company's operating performance:
The Company achieved growth of 12% with a net sales value of PKR 4.71 billion compared to the corresponding period last year. This revenue growth was driven by higher investments in Marketing and Sales, and an improved sales mix.
Higher sales, improvement in product mix and smart procurement of raw materials has led to a gross profit of PKR 1,314M for the Company. However, the gross profit margin was lower compared to last year as a result of price rationalization.
The Company has boosted its investment in Marketing and Sales significantly as a part of its strategy to drive volume growth, especially for the long-term development of the business. This demonstrates the Company's dedication to brand investment and is expected to continue in the future as well. Moreover, the Company has expanded its distribution, particularly within the retail sector, and bolstered its salesforce to improve customer service and enhance oversight of sales operations. As a result, selling and distribution expenses have increased significantly throughout the current period. However, the marketing and sales investments have started to bear fruit, as the Company achieved significant volume growth over same period last year despite challenging business environment. Expenses related to administration rose as a result of an increase in emoluments, professional fee and travel costs. Consequently, the Company achieved a positive bottom line with a reported after-tax profit of PKR 10 million.
Financial Performance at a Glance: | ||
YTD Sep-24 | YTD Sep-23 | |
PKR | ||
Net Sales Value | 4.71Bn | 4.19Bn |
Gross Profit | 1,314M | 1,231M |
Gross Profit % | 27.9% | 29.4% |
Sales, Marketing & Distribution Expenses | 875M | 449M |
Profit before taxation | 63M | 398M |
Profit after taxation | 10M | 227M |
Earnings per share - Rupees | 1.68 | 37.04 |
Future Outlook:
Despite some positive economic indicators such as a steady exchange rate and a decrease in interest rates by the State Bank of Pakistan, inflation continues to remain a concern, coupled with a general slowdown in the overall business environment, which has been further worsened by the imposition of high taxes in the last federal budget. The challenging future environment is also influenced by rise in commodity prices from increasing global conflicts. The Company's management continually evaluates circumstances and takes prompt action to address issues for sustained growth. They will remain focused on maximizing value chain potential, monitoring consumer pricing for competitiveness, providing well-valued product options, and enhancing customer satisfaction to increase market penetration.
Acknowledgement:
The Board appreciates all employees of the Company for their dedication, hard work, and innovation, all of which have played a significant role in expanding Company's business. The Board also extends its deepest appreciation to the Company's esteemed business partners, such as consumers, distributors, dealers, financial institutions, suppliers, and all other stakeholders, for their ongoing support.
For and on behalf of the Board of Directors | ||||
Karachi: October 21, 2024 | Mubashir | Ansari | ||
CEO / Director |
03 Quarterly Report September 30, 2024
Condensed Interim Statement of Financial Position
As at September 30, 2024 | September 30, December 31, | ||
2024 | 2023 | ||
ASSETS | (Un-audited) | (Audited) | |
Note | (Rs. in '000) | ||
NON CURRENT ASSETS | |||
Property, plant and equipment | 6 | 1,255,528 | 1,170,070 |
Intangible asset | 4,669 | 5,094 | |
Long term deposits | 23,743 | 12,286 | |
Long term loans to employees | 1,059 | 934 |
CURRENT ASSETS | |
Stock-in-trade | 7 |
Trade debts | 8 |
Advances, prepayments and other receivables | 9 |
Short term investments | 10 |
Cash and bank balances | 11 |
Assets classified as held for sale | 12 |
TOTAL ASSETS | |
EQUITY AND LIABILITIES | |
SHARE CAPITAL AND RESERVES | |
Authorized share capital | |
40,000,000 (December 31, 2023: 40,000,000) | |
ordinary shares of Rs. 10/- each | |
Issued, subscribed and paid-up capital | |
Capital reserves | |
Surplus on revaluation of property, plant and equipment | |
Revenue reserves | |
General reserves | |
Unappropriated profit | |
NON-CURRENT LIABILITIES | |
Long term loan | 13 |
Deferred taxation | |
Deferred staff liabilities | |
Lease liabilities | |
CURRENT LIABILITIES | |
Trade and other payables | 14 |
Current maturity of long term liabilities | |
Contract liabilities | |
Short term borrowings | 15 |
Taxation | |
Unclaimed dividends | |
CONTINGENCIES AND COMMITMENTS | 16 |
TOTAL EQUITY AND LIABILITIES |
1,285,000
742,482
273,178
119,446
-
222,523
1,357,628
578,555
3,221,183
400,000
61,226
946,793
6,000
208,859
1,222,878
708
196,069
173,659
47,503
417,939
1,249,488
21,410
79,842
131,846
96,295
1,485
1,580,366
3,221,183
1,188,384
676,181
231,219
159,131
176,243
127,293
1,370,067
588,362
3,146,813
400,000
61,226
958,870
6,000
198,758
1,224,854
6,228
204,010
151,089
61,139
422,466
1,169,205
125,594
83,368
-
119,916
1,410
1,499,493
3,146,813
The annexed notes from 1 to 24 form an integral part of these condensed interim financial statements.
Chief Financial Officer | Chief Executive Officer | Director |
04 Quarterly Report September 30, 2024
Condensed Interim Statement of
Profit or Loss (Un-audited)
For the nine month ended September 30, 2024
Nine month ended | Quarter ended | ||
September 30, | September 30, | September 30, September 30, | |
2024 | 2023 | 2024 | 2023 |
Note --------------------------- | (Rupees in '000) | -------------------------- |
Sales - net | 17 | 4,709,221 | ||
Cost of sales | 18 | (3,395,619) | ||
Gross profit | 1,313,602 | |||
Selling and distribution | ||||
expenses | (875,138) | |||
Administrative expenses | (295,484) | |||
(1,170,622) | ||||
Other income | 14,683 | |||
157,662 | ||||
Other charges | (5,499) | |||
Financial charges | (88,994) | |||
(94,493) | ||||
Profit/(loss) before tax and | ||||
minimum tax differential | 63,169 | |||
Minimum tax differential | 19 | (29,525) | ||
Profit/(loss) before tax | 33,644 | |||
Taxation | ||||
Current - For the year | (30,853) | |||
- Prior year | (463) | |||
Deferred | 7,942 | |||
(23,375) | ||||
Profit after tax | ||||
for the period | 10,269 | |||
Earnings per share - | ||||
basic and diluted (Rupees) | 1.68 | |||
4,194,141
(2,963,280)
1,230,861
(449,412)
(227,307)
(676,719)
12,370
566,512
(75,730)
(92,449)
(168,179)
398,333
-
398,333
(170,567)
(402)
(566)
(171,535)
226,798
37.04
1,697,124
(1,203,334)
493,790
(331,256)
(98,671)
(429,928)
4,957
68,819
(3,504)
(29,078)
(32,581)
36,238
(7,582)
28,656
(15,143)
-
241
(14,902)
13,754
2.25
1,641,464
(1,149,389)
492,075
(175,605)
(91,274)
(266,879)
5,392
230,587
(26,292)
(32,163)
(58,454)
172,133
-
172,133
(89,141)
-
(1,632)
(90,773)
81,360
13.29
The annexed notes from 1 to 24 form an integral part of these condensed interim financial statements.
Chief Financial Officer | Chief Executive Officer | Director |
Quarterly Report September 30, 2024 | 05 |
Condensed Interim Statement of
Comprehensive Income (Un-audited)
For the nine month ended September 30, 2024
Nine month ended | Quarter ended | |||||||||||
September 30, | September 30, | September 30, September 30, | ||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
--------------------------- | (Rupees in '000) -------------------------- | |||||||||||
Profit for the period | 10,269 | 226,798 | 13,754 | 81,360 | ||||||||
Other comprehensive income / | ||||||||||||
(loss) for the period | - | - | - | - | ||||||||
Total comprehensive (loss)/ | ||||||||||||
income for the period | 10,269 | 226,798 | 13,754 | 81,360 | ||||||||
The annexed notes from 1 to 24 form an integral part of these condensed interim financial statements.
Chief Financial Officer | Chief Executive Officer | Director |
06 Quarterly Report September 30, 2024
Condensed Interim Statement of Cash Flows (Un-audited)
For the nine month ended September 30, 2024
September 30, September 30, | ||||||
2024 | 2023 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | (Rs. in '000) | |||||
Profit before taxation | 63,169 | 398,333 | ||||
Adjustments for: | ||||||
Depreciation and amortization | 89,861 | 65,011 | ||||
Provision of slow moving obsolete stock | - | (7,711) | ||||
Provision against staff gratuity | 54,883 | 33,885 | ||||
Provision against other staff retirement benefits | - | 493 | ||||
Return on bank deposit | (4,409) | (652) | ||||
Dividend income on short term Investments | (7,350) | (5,293) | ||||
Finance costs | 88,994 | 92,309 | ||||
Loss on disposal of operating fixed assets | 1,037 | 19 | ||||
Profit before working capital changes | 223,016 | 178,061 | ||||
286,185 | 576,394 | |||||
Working Capital Changes | ||||||
Decrease/(increase) in current assets: | ||||||
Stock-in-trade | (66,306) | (140,072) | ||||
Trade debts | (41,959) | (93,514) | ||||
Loans to employees | 626 | (1,490) | ||||
Long term deposits | (1,650) | (6,310) | ||||
Advances, prepayments and other receivables | 16,846 | (127,053) | ||||
Increase/(decrease) in current liabilities: | (92,443) | (368,439) | ||||
Contract liabilities | 3,526 | (14,437) | ||||
Trade and other payables | 72,753 | 279,425 | ||||
76,279 | 264,988 | |||||
270,021 | 472,943 | |||||
Income taxes paid | ||||||
(61,130) | (48,038) | |||||
Staff gratuity paid | (32,314) | (2,324) | ||||
Other staff retirement benefits paid | - | (325) | ||||
Return received on bank deposits - under markup arrangements | 4,409 | 651 | ||||
Dividend received on short term Investments | 7,350 | 5,293 | ||||
Finance costs paid | (79,738) | (85,651) | ||||
Net cash flows from operating activities | (161,423) | (130,394) | ||||
108,598 | 342,549 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Addition in capital expenditure | (182,767) | (149,859) | ||||
Proceeds from disposal of operating fixed assets | 6,831 | 434 | ||||
Short term investments | 175,000 | 4,520 | ||||
Net cash flows (used in) / generated from investing activities | (937) | (144,905) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Lease repayment | (27,915) | (23,030) | ||||
Long term loan Repaid | (104,191) | 1,069 | ||||
Short term loan received | 131,846 | - | ||||
Dividend paid | (12,171) | - | ||||
Net cash (used in) / generated from financing activities | (12,431) | (21,961) | ||||
Net increase in cash and cash equivalents | ||||||
95,230 | 175,683 | |||||
Cash and cash equivalents at the beginning of the period | 127,293 | 73,356 | ||||
Cash and cash equivalents at the end of the period | 222,523 | 249,039 | ||||
The annexed notes from 1 to 24 form an integral part of these condensed interim financial statements.
Chief Financial Officer | Chief Executive Officer | Director |
Quarterly Report September 30, 2024 | 07 |
Condensed Interim Statement of
Changes in Equity (Un-audited)
For the nine month ended September 30, 2024
Capital Reserves | Revenue Reserves | ||||||||||||||
Issued, | Surplus on | ||||||||||||||
subscribed | revaluation | General | (Accum- | Total | Total | ||||||||||
and paid up | of property, | Reserve | ulated | Reserves | |||||||||||
capital | plant and | loss) / | |||||||||||||
equipment | Unappro- | ||||||||||||||
priated | |||||||||||||||
profit | |||||||||||||||
(Rs. in '000) | |||||||||||||||
Balance as at January 01, 2023 - (audited) | 61,226 | 976,744 | 6,000 | (64,094) | (58,094) | 979,876 | |||||||||
Total comprehensive income for the period | |||||||||||||||
Profit for the period | - | - | - | 226,798 | 226,798 | 226,798 | |||||||||
Other comprehensive income | |||||||||||||||
Transferred from surplus on revaluation of | |||||||||||||||
property, plant and equipment - net of tax | |||||||||||||||
(incremental depreciation) | - | (12,121) | - | 12,121 | 12,121 | - | |||||||||
- | (12,121) | - | 238,919 | 238,919 | 226,798 | ||||||||||
Balance as at September 30, 2023 (unaudited) | 61,226 | 964,623 | 6,000 | 174,825 | 180,825 | 1,206,674 | |||||||||
Balance as at January 01, 2024 (audited) | 61,226 | 958,870 | 6,000 | 198,758 | 204,758 | 1,224,854 | |||||||||
Total comprehensive income for the period |
Proft for the period
Other comprehensive income Transferred from surplus on revaluation of property, plant and equipment - net of tax (incremental depreciation)
Dividend paid for the year ended December 31, 2023
- | - | - | 10,269 | 10,269 | 10,269 |
- | (12,077) | - | 12,077 | 12,077 | - |
- | (12,077) | - | 22,347 | 22,347 | 10,269 |
- | - | - | (12,245) | (12,245) | (12,245) |
Balance as at September 30, 2024 (unaudited) 61,226 | 946,793 | 6,000 208,859 | 214,859 1,222,878 | ||||||||
The annexed notes from 1 to 24 form an integral part of these condensed interim financial statements.
Chief Financial Officer | Chief Executive Officer | Director |
08 Quarterly Report September 30, 2024
Notes to the Condensed Interim
Financial Statements (Un-audited)
For the nine month ended September 30, 2024
- STATUS AND NATURE OF BUSINESS
ZIL Limited ("the Company") was incorporated as a private limited company in February 16, 1960 under the Companies Act, 1913 (now the Companies Act, 2017) and was subsequently converted into a public limited company in November 1986. Its shares are listed on the Pakistan Stock Exchange Limited (PSX). The principal activity of the Company is manufacture and sale of home and personal care products.
- GEOGRAPHICAL LOCATION AND ADDRESSES OF BUSINESS UNITS / IMMOVABLE PROPERTIES
Location | Address |
Head Office | Bahria Complex III , Plot No. MISC-2, M.T. Khan Road, Karachi. |
Factory | Link Hali Road, Hyderabad (Refer note 12 to these condensed interim |
financial statements). | |
Factory - under | Plot # G-1 Located In Chemical Area Of Eastern Industrial Zone, |
construction | Port Qasim Authority, Karachi. |
Warehouse | Plot No. C-6, SITE Area, Near Mirpurkhas Road, Hyderabad. |
Warehouse | 1st Part of Plot No. 21-B, Industrial Estate, Multan. |
Regional sales | Khewat No. 55, situated at 16-KM, Multan Road, Lahore. |
office central | |
and Warehouse | |
Regional sales | Naeema Azam Tower 1st floor Office # 08. Commercial Area |
office -Central 2 | Phase I Industrial Estate. Multan |
Multan | |
Regional sales | Plaza 52, Marina commercial, Cornice road, Phase 4, Bahria Town, |
office-North | Islamabad. |
Quality assurance | 1st Floor, Pardesi House, Plot No. 2/1, RY-16, Old Queens Road, |
lab & Regional | Karachi |
Sales office south |
- BASIS OF PREPARATION
3.1 Statement of compliance
These condensed interim financial statements are unaudited and are being submitted to the shareholders as required under section 237 of the Companies Act, 2017 (the Act).
Quarterly Report September 30, 2024 | 09 |
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