Reckitt Benckiser Pakistan said that sales grew by 15.5 percent while its profit before tax depicted a decline of 30 percent in the year ended December 31, 2003.
The company's profit before tax for the second half of 2003 stood at Rs 186.5 million, whereas, in the second half of 2002, profit before tax was Rs 153.9 million.
Profit before tax for the full year was Rs 190.3 million, 30 percent lower than the previous year due to restructuring costs incurred in June 2003.
Company is also focusing on reducing net working capital,, which has continued resulting in a better cash position. The company has also decided not to declare dividend for the year 2003.
During 2003, sales for the household products were Rs 1,510.4 million versus Rs 1,333.3 million last year, as a result of volume growth in certain categories and the launch of new products.
Special focus is being laid on export sales and they grew by several times last year.
Significant marketing expenditure was incurred during the year, along with the one time redundancy charge relating to the Korangi Factory, resulting in an operating loss of Rs 82.9 million in the household division.
Sales for the pharmaceutical division rose to Rs 1,379.7 million reflecting an 18 percent increase over the last year with most of the products categories delivering good volume growth.
Gross Margin too was better due to higher top-line growth and cost reductions. Operating profit stood at Rs 232.1 million versus Rs 177.3 million showing an improvement of 30.9 percent over the previous year.
Ali Ahmed Khan, Chief Executive, Reckitt Benckiser Pakistan, said, "2003 was a good year for the company. Business has picked up momentum, which is reflected in the profits we have generated."
"Encouragingly, profit margins are expanding strongly behind our cost optimisation programmes and cash generation continues to improve, he said, adding, "our performance in 2003 gives us increasing confidence in achieving our targets for the future."
In an extraordinary General Meeting, held in January, the shareholders approved and authorised the purchase of 4,000,000 of its own issued ordinary shares subject to the terms specified in the Special Resolutions passed at the meeting.
So far, the Company has received valid offers of 3,947,107 shares from its members. An amount of Rs 354.88 million is likely to be utilised from the distribute-able profits for the purchase of these shares.
Unappropriated Profit and Reserve of the Company stand at Rs 404.8 million at December 2003.
As the amount of Rs 354.88 million is going to be utilised for the Share Buy-Back scheme, therefore, the directors have decided to retain these reserves and no dividend has been recommended for the year 2003.
The Board of Directors decided to sell and dispose of the land and building of the former Ultramarine Blue Factory situated in Korangi Industrial Area along with other structure at the premises.