The company was incorporated in Pakistan in 1967 and is currently listed on all the stock exchanges of the country.
It is a subsidiary of a large multinational corporation engaged in the manufacturing and selling of pharmaceutical products. The registered office of the company is located at Plot-23, Korangi Industrial Area Karachi.
The share in the company is trading at Rs 270 per share which is nearly 27 times of the par value. At this market value Sanofi-Aventis Pakistan's market capitalization has shot up at Rs 2.60 bln from a small capital base of Rs 96.45 mln. For the six month ended June 30, 2006 (HY 2005-06) the company posted net sales at Rs 1.826 bln (SPLY: Rs 1.639 bln) registering 11.46% growth.
It has been clarified in the half yearly report under review that this growth is because of volume growth and sales of new products as the company has not received any price increase from the government since December 2001. However, gross profit margin has significantly improved as can be seen from the following performance statistics. The improvement shows that the company has succeeded in optimising the input cost.
Pretax profit was in the sum of Rs 184.62 mln and in this case the growth over SPLY was 32.7% which is impressive. It has been emphasized that the significantly better increase in growth rate of profit, as compared to sales growth was on account of improvement in product mix ie proportionately higher sales of products with higher gross margins, and cost controls, increase on account of inflation and sales related cost increase, is less than sales increase in percentage terms.
It has been reported that Ministry of Health recently deregistered all products containing the active ingredient Metamizol consequently the company has stopped manufacture and sale of Novalgin a product which contributed a sizeable amount of sales.
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Performance Statistics (Mln Rs)
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Balance sheet -As At-
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June 30 December 31
2006 2005
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Share Capital-Paid-up: 96.45 96.45
Reserves & Surplus: 831.21 796.69
Shareholders Equity: 927.66 893.14
L.T. Debts: - 62.50
Deferred Tax Liability: 14.03 -
Deferred Liabilities: 4.48 4.47
Current Liabilities: 998.91 1,161.10
Fixed Assets: 648.99 632.20
L.T. Loan & Advances: 11.39 11.40
L.T. Deposits: 3.32 3.30
Deferred Tax Assets: - 1.55
Current Assets: 1,281.38 1,472.76
Total Assets: 1,945.08 2,121.21
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Profit & Loss A/c for Half Year Ended June 30
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2006 2005
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Net-Sales: 1,826.43 1,638.58
Gross Profit: 635.07 524.10
Other Operating Income: 7.79 10.12
Operating Profit: 233.89 165.26
Finance (Cost): (49.27) (26.15)
Profit Before Taxation: 184.62 139.11
Profit After Taxation: 118.44 99.72
Earnings Per Share (Rs): 12.28 10.34
Share Price (Rs) on 04/09/06: 270.00 -
Price/Earning Ratio: 22.00 -
Book Value Per Share (Rs): 96.18 92.60
Debt/Equity Ratio: 0:100 6:94
Current Ratio: 1.29 1.27
Gross Profit Margin (%): 34.77 31.99
Net Profit Margin (%): 6.48 6.08
R.O.A. (%): 6.08 4.70
R.O.E. (%): 12.77 11.16
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