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