Food & Personal Care-Products: ISMAIL INDUSTRIES LIMITED - Half Year Ended December 31 2006

The company was incorporated in Pakistan as a private limited company on June 21, 1988 and on November 01, 1989 the company became a public limited company.
It is listed on Karachi and Lahore stock exchanges and its registered office is situated in a posh residential-cum-commercial locality of Karachi ie 17, Bangalore Town Shahrah-e-Faisal. The company is primarily engaged in the manufacturing and trading of sugar confectionery items, potato chips and cast polypropylene film under the brand of Candyland, Bisconni Snackcity and "Astropack" respectively.
Ismail Industries items have been pleasing the children since more than two decades and has been great source keep their mood favourable for parents. Some of the products which are popular household names are 'Kurleez' chips, chocolate chip (biscuit), lollypops, chillimilli candies etc.
The manufacturing facilities of the company are divided in to four units and all of there are situated at Hub Industrial Trading Estate in the province of Balochistan.
During the six months ended December 31, 2006 (FYD 06-07), the company's total sales increased by Rs 269 million from Rs 843.34 million in corresponding period last year to Rs 1,112.61 million. In terms of growth rate, sales attained 32% increase which is highly commendable feat.
The businesses: the company is divided into two business segment. During FYD 06-07, food processing segment's sales amounted to Rs 866.2 million which were 78% of the total sales of the company. Remaining contribution to the company's sales was made by its plastic film segment.
The lower contribution of this segment cannot minimize the benefits of diversification in business. The directors have explained that the food processing segment showed growth both in turnover and gross profit confectionery and biscuit division made positive contribution but the new addition of potato chips and snacks division which is at initial stage, has caused the operating profit to decrease.
During the period plastic film segment showed growth in all areas. The overall revenue of this segment increased by Rs 91 million. Operating profit was in the sum of Rs 35 million as against operating loss of Rs 1.6 million during the corresponding period last year.
The company posted net profit after taxation at Rs 10.4 million as against Rs 11.1 million in the corresponding period last year. Its shares are trading at stock exchange at very high price. During the last 52 weeks price of the share ranged between Rs 31 and Rs 43.90 per 10-rupee share.

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Performance Statistics                      (Million Rupees)

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Balance Sheet                                        -As At-

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                                   December 31       June 30

                                          2006          2006

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                                    Un-audited       Audited

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Share Capital-Paid-up:                  240.57        240.57

Share Premium:                           50.00         50.00

Un-appropriated Profit:                 152.07        142.55

Shareholders Equity:                    442.64        433.12

Director Loan-Subordinated:             195.00        195.00

Director Loan-Ordinary:                  55.00             -

Other L.T. Debts:                       341.13        433.33

Deferred Liability-Gratuity:             12.09         10.31

Current Liabilities:                  1,430.00      1,269.58

Fixed Assets Tangible:                1,128.41      1,074.44

L.T. Deposits:                            7.59          6.88

Current Assets:                       1,339.86      1,260.02

Total Assets:                         2,475.86      2,341.34

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Profit & Loss A/c for Half Year End December 31

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                                          2006          2005

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Net Sales:                            1,112.61        843.54

Gross Profit:                           215.67        146.55

Operating Profit:                        88.34         53.36

Other Operating Income:                   2.19          7.83

Finance (Cost):                        (72.60)       (45.19)

Profit Before Taxation:                  16.64         15.64

Profit After Taxation:                   10.37         11.10

Earnings Per Share (Rs):                  0.43          0.46

Share Price (Rs) on 06/06/2007:          39.65             -

Price/Earning Ratio:                     92.20             -

Debt/Equity Ratio:                       38:62         41:59

Current Ratio:                            0.94          0.99

Gross Profit Margin (%):                 19.38         17.37

Net Profit Margin (%):                    0.93          1.31

R.O.A. (%):                               0.41          0.47

R.O.E. (%):                               2.34          2.56

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