Paper & Board: CENTURY PAPER & BOARD MILLS LIMITED Nine Months Ended March 31 2006
The company is a sister concern of Lakson Group of Companies, one of the large local groups operating in Pakistan having foreign affiliations with Colgate-Palmolive, Philip Morris International, McDonalds Corporation, Tetley UK etc.
Lakson Group has diversified interests such as cigarettes, paper and board, soaps and detergents, instant fruit drinks, packaging, fast food chain, information technology, insurance, travel and tours, surgical goods, chemical formulation.
Seven Group companies are listed on Karachi and Lahore Stock Exchanges with many of them receiving Top Companies awards.
Century Paper and Board Mills Ltd (CPBM) is the only ISO 9001:2000 Certified Paper and Board unit of Pakistan and it is also ISO 14001 certified company. CPBM has production capabilities of 120,000 tpy of Paper and Board with its six machines, in-house corrugated box manufacturing plant and power generation plant CPBM has targeted sales volume of Rs 4 billion p.a. (USD 67 million) for the current financial year 05/06.
The company has finalised contract with Daewoo International Corporation for supply of PM7, a mega capacity expansion project worth Rs 7.5 billion (USD 125) million for producing prime quality packaging board in Pakistan.
CPBM produces writing and printing paper and coated and uncoated board in various grammages, sizes and forms. The box plant produces corrugated boxes of various sizes and weights upto three colour printing.
For raw material the company imports wood pulp from Scandinavian countries, Western Europe and USA. Another major raw material is recycled paper, apart from being procured locally is imported in large quantities from various countries. Local wheat straw and river grass are also used to produce chemical pulp.
The previous MD & CEO of CPBM Mohammad Rafi Chawla who was MBA from IBA Karachi died on February 18, 2006. In a published obituary paid the company leadership rich tribute to him, stating that the achievements of the company due to the visionary leadership of Rafi Chawla who made this company the largest producer of Quality Paper and Paper Board and Corrugated Box in Pakistan.
Currently the market value of the company share is at Rs 44.45 per 10-rupee share. During the last one year the market value of the share went up from Rs 41.10 to Rs 97.50 per share. Upto March 31, its paid up capital was Rs 321.24 million. Now the paid-up capital has gone up to Rs 642.57 million. At the current market price market capitalisation has reached 2.856 billion.
During 9M 2005-06 the company posted net sales at Rs 2.46 billion as compared to Rs 2.27 billion in the SPLY showing 8.1% growth. There was severe pressure on gross margins as well as escalation in operating expenses. Also financial cost shot up 185% over SPLY (same period last year).
Hence, it can be seen from the following performance statistics that margins eroded by 4.67 percentage points. Gross profit declined by 18.2% and net profit was down by 27.1% as compared to SPLY.
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Performance Statistics (Mln Rs)
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March 31 June 30
2006 2005
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Un-Audited Audited
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Share Capital-Paid-up: 321.24 321.29
Reserves: 1,171.78 1,155.29
Shareholders Equity: 1,493.02 1,476.58
Deposit against
Issue of Right Shares: 573.59 -
L.T. Debts: 764.15 533.08
Deferred Taxation: 343.67 271.67
Current Liabilities: 687.65 562.96
Fixed Assets: 2,998.15 2,110.94
Intangible Fixed Assets: 0.29 0.50
L.T. Loans: 0.15 0.03
L.T. Deposits: 1.45 1.59
Current Assets: 862.04 731.23
Total Assets: 3,862.08 2,844.29
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Profit & Loss A/c for Nine Months Ended March 31
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2006 2005
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Net Sales: 2,458.93 2,273.83
Gross Profit: 357.01 436.46
Other Operating Income: 30.67 16.53
Operating Profit: 298.63 361.32
Financial (Charges): (55.19) (19.38)
Profit Before Taxation: 243.44 341.94
Profit After Taxation: 161.02 220.90
Earnings Per Share (Rs): 5.01 6.88
Share Price (Rs) on 03/08/06: 44.45 -
Price/Earning Ratio: 8.87 -
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Break-up Value Per Share:
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Debt/Equity Ratio: 27:73 26:74
Current Ratio: 1.25 1.30
Gross Profit Margin (%): 14.52 19.19
Net Profit Margin (%): 6.55 9.71
R.O.A. (%): 4.17 7.77
R.O.E. (%): 5.07 9.68
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COMPANY INFORMATION: Chairman: Chairman & Chief Executive: Iqbalali Lakhani; Director: Tasleemuddin Ahmed Batlay; Company Secretary: Ramzan Ali Halani; Head Office/Registered Office/Corporate/Shares Office: Lakson Square, Building No 2, Sarwar Shaheed Road Karachi 74200 (Sindh); Website: www.centurypaper.com.pk; Factory: 67 KM, Lahore-Multan Highway N5 District Kasur (Punjab).
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