Food & Personal Care-products: NATIONAL FOODS LIMITED - Nine Months Ended March 31 2004

National Foods Limited was founded in 1970 and started out as spices company, 3 decades later it has diversified in a food company with over 150 products.
According to pattern of shareholdings dated June 30, 2003, the company's directors and their spouses held 34.4% of the company's total 4.25 million shares of Rs 10 each. Its associated undertaking Associated Textile Consultants (Pvt) Limited held 33.16% of the company's stock. Its individual investors held 32.13% of the stock.
This is a public limited company listed on all three stock exchanges of Pakistan. At present the market price of its share has been recorded at Rs 112 per share which is more than eleven times of the par value. During the last one year the price of the share appreciated from Rs 57 to Rs 128.25 per share.
The company is primarily engaged in the manufacturing and sale of spices, pickles, pastes/ketchup and iodised salt.
In 1986, its new factory complex was constructed, in which a major chunk of manufacturing facilities still reside.
In 1998, the company achieved ISO certification. In 2000, mainstream products were launched in Australia to offer ethnic food to non-Asian consumers.
The year 2002 was a crucial year as it witnessed three major capital investments, namely the launch of Bin Qasim Industrial Unit, deployment of a New Sauce Plant and ERP (Enterprise Resource Planning) Software implementation.
The financial backbone of its balance sheet remained robust as evidenced from its solvency, liquidity and profitability ratios as well as break value and market value of its shares.
Sales in terms of value, during the period under review (9M 2003-04), reached Rs 1,042.52 million. Its annualised estimated sales works out to Rs 1390 million which is 22.4% higher than its last year's sales of Rs 1135.64 million.
According to the published data the company's sales has continued its upward trend. Since 1998 hence its annualised estimated sales holds validity.
The directors also maintain positive outlook for the 4th quarter. Due to the restructuring of financial portfolio, savings to the tune of Rs 8.1 have been added to the operations.
The company has also prepaid 40% of the principal value of the loan used to finance the paste plant expansion. Its net profit at Rs 62 million is more than 2.7 times of profit of 9 months last year.

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Performance Statistics                (Million Rupees)

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Balance Sheet                                  -As At-

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                                 March 31      June 30

                                     2004         2003

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Share Capital-Paid-up:              42.50        42.50

Reserves & Surplus:                142.55        80.65

Shareholders Equity:               185.05       123.15

L.T Debts:                          22.75        45.95

L.T Deposits:                        0.09         0.08

Deferred Tax:                        6.21         8.76

Current Liabilities:               344.42       298.95

Fixed Assets:                      183.16       187.56

L.T Deposits:                        2.14         1.96

Current Assets:                    373.22       287.37

Total Assets:                      558.52       476.89

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Profit & Loss A/c

 For Nine Months Ended      March 31 2004         2003

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Sales (Net):                     1,042.52       870.57

Gross Profit:                      320.61       244.76

Operating Profit:                   95.16        40.08

Other Income-net:                    1.30         3.10

Financial (Charges):                (9.36)     (14.59)

Profit Before Taxation:             81.65        31.26

Profit After Taxation:              61.90        22.51

Earnings Per Share (Rs):            14.56         5.29

Share Price (Rs) on 09.07.2004:    112.00            -

Price/Earning Ratio:                 7.69            -

Book Value of Share (Rs):           43.54        28.98

Debt/Equity Ratio:                  11:89        27:73

Current Ratio:                       1.08         0.96

Gross Profit Margin (%):            30.75        28.11

Net Profit Margin (%):               5.93         2.59

R.O.A:                              11.08         4.72

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