Its Directors' remark is that this has been a highly successful year for this multinational pharmaceutical company. The company's sales revenue swelled to Rs 3.179 billion for Rs 2.897 billion posted in the preceding year.
Its net profit after taxation increased to Rs 245 million as compared to Rs 155 million in 2003. Both sales and profit were record highest figures. In the field of information technology IT upgrade and use of new technology remain high priority. Being part of the 3rd largest pharmaceutical company in the world, gives the company access to highly competitive prices to new and modern IT Software and its employees regularly attend training programmes for use of this Software.
The company is being supported in the use of its five SAP modules by regional setup of the associated company in Australia. The company markets famous pharmaceutical products and its products continue to be market leaders in 10 therapeutic areas of the Pakistan pharmaceutical market. Recently, it launched prestigious product LANTUS (insulin glargine).
Aventis Limited is a subsidiary of Aventis Pharma Holding GmbH and Plasma Investments UK Plc, which are incorporated in Germany and United Kingdom respectively. The ultimate holding company of both these companies is Sanofi - Aventis S.A.
Towards the end of 2004, the international acquisition of Aventis SA by Sanofi Synthelabo SA was confirmed after necessary regulatory approvals and the merged company is now known as Sanofi - Aventis SA.
Consequently, the company became associated company of the Sanofi - Aventis SA group companies and the company has started using the Sanofi Aventis logo. There is no separate Sanofi Synthelabo legal entity in Pakistan and products of ex-Sanofi Synthelabo are presently sold in Pakistan by a local pharmaceutical company under a licensing arrangement.
According to the last MIS report the company is the 4th largest company in terms of sales, within the pharmaceutical industry of Pakistan. Its growth rate of over 16% as reflected by IMS and market share of 5.2% was almost amongst the highest in the industry.
Aventis Limited, the subsidiary in Pakistan, is a public limited company and was listed at Karachi Stock Exchange in 1977. Its shares are also quoted on Lahore and Islamabad stock exchanges. It is engaged in the manufacturing and selling of pharmaceutical products. Its registered office and factory are located at Korangi Industrial Area, Karachi. On 31st December 2004, its associated companies held 65.45% of its stock.
At present Aventis Ltd share is trading at Rs 185 per share, which works out to more than 18 times of the par value. Almost all multinational pharmaceutical companies are doing very good business and maintain high reputation in business processes and profitability as such their shares carry very high market value. During the last one year the company's share price peaked to Rs 338.50 per share.
The company has excellent track record of profit distribution. During the year 2004 the company declared cash dividend at 75% and last year it was 60%. During the year under review the company generated net sales at Rs 3.179 billion (2003: Rs 2.897 billion) reflecting commendable growth in sales at 9.7% over preceding year's. While gross profit increased by 15.3%, its gross margin improved by 1.48 percentage points too.
The company maintains excellent financial position as evidenced from the long term debt coverage and liquidity ratio. It has relatively small capital base but the shareholders equity has swelled to almost seven times because of reserves and retained earnings.
Despite substantial increase in sales, its distribution and selling expenses declined. Profit further got boost due to decrease in finance cost by Rs 37 million. On the other hand the operating income decreased to Rs 15.85 million from Rs 27.34 million in 2003. There was also higher provision of tax as compared to the preceding year's.
However, the company posted higher net profit after taxation at Rs 245 million as compared to Rs 155 million posted in the preceding year. The directors foresee a better impact of WTO regime, which started since January 1, 2005 in terms of respect of patents with more care.
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Performance Statistics (Million Rupees)
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31 December 2004 2003
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Share Capital-Paid-Up: 96.45 96.45
Reserves & Surplus: 571.91 404.04
Shareholders Equity: 668.36 500.59
L.T. Debts: 187.50 -
Deferred Liabilities: - 11.05
Current Liabilities: 627.99 1,107.75
Tangible Fixed Assets: 597.59 446.23
L.T. Deposits & Prepayments: 2.71 2.65
L.T. Loans & Advances: 13.73 13.61
Deferred Taxation: 12.48 22.13
Current Assets: 857.34 1,134.77
Total Assets: 1,483.85 1,619.39
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Sales, Profit & Pay Out
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Net-Sales: 3,178.78 2,896.60
Gross Profit: 984.74 854.17
Operating Profit: 394.06 270.28
Other Operating Income: 15.85 27.34
Finance (Cost): (26.42) (63.47)
(Depreciation): (59.43) (36.47)
Profit before Taxation: 383.48 234.15
Profit After Taxation: 244.92 154.67
Earnings Per Share (Rs): 25.39 16.04
Dividend Cash (%): 25 35
Share Price (Rs) On 22/08/05: 185 -
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Financial Ratios
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Price/Earnings Ratio: 7.29 -
Book Value Per Share: 69.30 51.90
Price/Book Value Ratio: 2.67 -
Debt/Equity Ratio: 22:78 0:100
Current Ratio: 1.36 1.02
Asset Turn Over Ratio: 2.14 1.79
Days Receivables: 7 9
Days Inventory: 99 94
Gross Profit Margin(%): 30.97 29.49
Net Profit Margin (%): 7.70 5.33
R.O.A (%): 16.51 9.55
R.O.C. E. (%): 28.61 30.23
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CAPACITY & PRODUCTION: The Capacity and production of the company's manufacturing facility is undeterminable as it is a multi product plant involving varying processes of manufacture.
COMPANY INFORMATION: Chairman: Babar Ali; M.D. & Chief Executive: Tariq Wajid; Company Secretary & Director: M.Z. Moin Mohajir; Factory & Registered Office: Plot 23, Sector 22, Korangi Industrial Area, Karachi-74900; Web Address: www.aventispharma.com.pk
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