Pharmaceuticals: RECKITT BENCKISER PAKISTAN LIMITED - Half Year Ended June 30 2004

The company is incorporated as a public limited company in the province of Sindh having its registered and head offices at State Life Building, Abdullah Haroon Road, Saddar, Karachi. The company was listed at Karachi Stock Exchange in 1977. The closing market price on 6th December 2004 was quoted at Rs 108 per share which is nearly eleven times of the par value. During the last one year the price of the Reckitt Benckiser share shot up from Rs 184 to Rs 119.90 per share.
In 2002, the company had announced dividend at 25% but there was no announcement for 2003.
In pursuance of a special resolution passed at extra ordinary general meeting held on January 30, 2004 regarding buy back of its own shares and section 95 A of the Companies Ordinance, 1984, the company purchased 2,655,870 shares against tender offers received from shareholders upto March 24, 2004.
During the half year under review the company made additions in the fixed assets to the extent of Rs 24.95 million.
Its Net Sales at Rs 1,475.54 million registered 8.2% increase over the amount of Rs 1,363.83 million posted in the corresponding period of last year (HY 2002-2003). Gross Profit at Rs 601.01 million was 40.9% higher than the preceding year's figure of Rs 426.31 million.
The previous half year having been substantially hit by redundancy cost involved in the closure of ultra marine blue factory.
The company made substantial pre-tax profit at Rs 142.29 million compared to the pre-tax profit at Rs 3.71 million in the preceding HY 2002-03. The company posted net profit after taxation at Rs 78.72 million compared to loss after taxation at Rs 6.02 million posted in the preceding year.
Its House hold Products segment made good volume growth in a number of key brands which are being supported by significant investments in terms of marketings.

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Performance Statistics                (Million Rupees)

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Balance sheet                                  -As At-

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                                  June 30  December 31

                                     2004         2003

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Share Capital-Paid-up:             294.03       320.59

Reserves & Profit:                 275.16       404.81

Shareholders Equity:               565.19       725.40

Deferred Liability-Staff

 Gratuity:                          76.49        70.57

Current Liabilities:               960.67       854.35

Fixed Assets:                      155.00       175.26

Deferred Taxation:                  58.59        75.88

L T Loans & Advances:                6.26         6.27

L T Deposits:                        0.06         0.06

Current Assets:                  1,382.44     1,392.85

Total Assets:                    1,602.35     1,650.32

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Profit & Loss A/c For the

 Half Year Ended June 30             2004         2003

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Sales:                           1,475.54     1,363.83

Gross Profit:                      601.01       426.31

Operating Profit/(Loss):           135.07       (5.99)

Other Income:                       22.48        14.67

Financial (Charges):                (0.66)        0.72

Profit Before Taxation:            142.29         3.71

Profit/(Loss) After Taxation:       78.72       (6.02)

Earning /(Loss) Per Share (Rs):      2.53       (0.19)

Share Price (Rs) on 6/12/04:       108.00            -

Price/Earning Ratio:                42.69            -

Book Value of Share (Rs):           19.22        22.62

Debt/Equity Ratio:                  0:100        0:100

Current Ratio:                       1.44         1.63

Gross Profit Margin (%):            40.73        31.26

Net Profit Margin (%):               5.33       (0.44)

R.O.A. (%):                          4.91       (0.36)

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