Pakistan Aluminium Beverage Cans Limited (PABC) - May 2023

Pakistan Aluminium Beverage Cans Limited (PABC) – May 2023

Research Team

Table of Contents

Corporate Briefing Notes

Pakistan Aluminium Beverage Cans Limited (PABC) held its corporate briefing session to discuss the financial results for CY22 and its outlook.

Key Highlights

● Topline of the company witnessed a strong growth of 96% YoY to PKR 14bn in CY22 compared to PKR7.2bn in SPLY. Similarly, net sales increased by 97% YoY in 1QCY23 to PKR 5.2bn.
● Net Profit of the company also surged by 71% YoY to PKR2.7bn (EPS: PKR7.48/sh) during CY22. The growth is mainly attributed to PKR devaluation along with capacity expansion and strong sales volumes driven by improvement in export sales.
● PABC exported around 30-32% of their total revenue in CY22 to Afghanistan and holds the majority market share. The company recently penetrated into new export markets including Bangladesh, Uzbekistan and Tajikistan. Current sales mix of the company comprises of 50% exports and 50% local sales.
● Furthermore, the company is also eyeing to increase its export proceeds given slow demand in Pakistan. To note, local sales were slightly squeezed in CY22 and 1QCY23 amid inflationary pressures.
● PABC’s core earnings are set to rebound with strong exports from new markets, including Central Asia Bangladesh, Tajikistan, and Uzbekistan. The company’s affordable pricing and international quality standards make it well-positioned to profit from diversification that results into better future earnings.
● As per management, the company has not encountered any issues regarding the opening of LCs for importing raw materials. As 50% of the company’s sales are export-oriented, that generates sufficient earnings to cover a significant portion of their import requirements.

Future Outlook

● Going-forward, volatility in commodity prices, escalating fuel costs, uncertain geopolitical and domestic macro-economic situations pose severe challenges to the company’s profile. However, the company adopts an active management approach, leverages expertise to smoothly run the business operations.

Important Disclosures


This report has been prepared by Chase Securities Pakistan (Private) Limited and is provided for information purposes only. Under no circumstances, this is to be used or considered as an offer to sell or solicitation or any offer to buy. While reasonable care has been taken to ensure that the information contained in this report is not untrue or misleading at the time of its publication, Chase Securities makes no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time, Chase Securities and/or any of its officers or directors may, as permitted by applicable laws, have a position, or otherwise be interested in any transaction, in any securities directly or indirectly subject of this report Chase Securities as a firm may have business relationships, including investment banking relationships with the companies referred to in this report This report is provided only for the information of professional advisers who are expected to make their own investment decisions without undue reliance on this report and Chase Securities accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents At the same time, it should be noted that investments in capital markets are also subject to market risks This report may not be reproduced, distributed or published by any recipient for any purpose.

Analyst certification:

The research analyst for this report certifies that 1.all of the views expressed in this report accurately reflect her personal views about the subject and part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst in this report.

Share it!

Scroll to Top

Step Towards Secure Investments