Professional Documents
Culture Documents
April 2012
Company Prole
ACI Limited was established as the subsidiary of Imperial Chemical Industries (ICI) in East Pakistan in 1968. After independence, the company was incorporated in Bangladesh in 1973 as ICI Bangladesh Manufacturers limited as a Public Limited Company. In 1992, the company was divested to local management and the name of the company changed to Advanced Chemical Industries (ACI) Limited. Initially in 1992, ACI started primarily with pharmaceutical business, now it has diversied its business interest in consumer brands, agricultural including shery & livestock and marketing them along with fertilizer, seeds and other agricultural items. At present, ACI has ve strategic business units along with 11 subsidiaries, 3 joint ventures and 1 associate. In response to growing demands of the consumers of Bangladesh, ACI has diversied its business to include wide range of products in its portfolio.
COMPANY SNAPSHOT Paid-up Capital Total No. of Securities Free Float (estimated) Market Capitalization Reserve & Surplus 52 Week Price Range Average Daily Turnover Face Value Market Lot Category Source: DSE & LBSL Research
BDT 197.0 Mn 19.7Mn 63.24% BDT 4751.256Mn BDT 3883.72Mn 158.7 - 329.9 BDT 5.59 Mn Tk. 10 50 A
PRICE PERFORMANCE Price Performance (%) 3M 6M DGEN 5% -15% ACI -5% -16% Income statements Revenue Gross prot Prot before income tax Net Prot
Growth (CAGR of 5 Years) 27.9% 23.1% 10.2% -3.5% Balance Sheet Non-current assets 33.5% Current Asset 28.8% Total Assets 30.9% Total equity 32.3% Long term liabilities 41.6% Current liabilities 27.7% Total equity and liabilities 30.9%
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ACI Limited
Shareholding Pattern
April 2012
Top Products in Pharmaceutical Segment Brand Name Sales (BDT in Mn) Market Share (%) Growth (In%) XELDRIN 427.64 0.53 18.04 FLUCLOX 280.42 0.35 9.98 CEFIM-3 177.30 0.22 15.78 Source: IMS
ACI aerosol maintained market leadership with over 86%. Coil business also did exceptionally well and striving for becoming absolute leader in the market place. In Air care category, ACI has also very attractive product range with Angelic Fresh Air Freshener, which has become market leader in two years time. ACI has another very strong range of products in its Hygiene Product category. Savlon Liquid Antiseptic is the highest selling antiseptics in the country, which more than 78% market share of its category. Products like Savlon Antiseptic cream, Savlon Family Protection Soap and Savlon Femme Sanitary Napkin, Vanish Toilet Cleaner are also under this category. ACI Consumer brands also deals with products of internationally acclaimed company like Colgate Palmolive and Nivea. Recently ACI Electronics a sub unit of ACI Consumer Brands has launched Panasonic Audio visual items in the country.
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ACI Limited
ACI Subsidiary Review
April 2012
Turnover Gross Prot Operating Prot Net Prot Interest Expense Equity Total Assets Total Debt Gross prot margin Operating prot margin Net prot margin Debt to capital ratio
ACI Logistics ACI Formulation 2010 2009 2010 2009 898.0 491.8 1924.4 2079.9 103.3 60.6 458.1 488.5 -426.6 -418.6 187.7 291.3 -578.3 -486.8 91.6 160.3 163.0 69.3 65.5 74.1 -797.8 -219.6 1581.9 948.3 1210.4 1156.2 2641.3 2086.0 769.0 642.8 807.9 826.9 Prot Margin and Leverage ratio 12% 12% 24% 23% -48% -85% 10% 14% -64% -99% 5% 8% (26.66) 1.52 0.34 0.47 ACI Pure Flour ACI Foods Limited Limited 2010 2009 2010 2009 2201.1 1373.9 347.2 250.1 221.5 160.7 46.0 36.5 97.7 76.1 -120.2 -121.9 57.8 26.2 -162.2 -159.5 475.5 59.2 63.9 48.1 65.7 29.9 -370.4 -208.2 632.6 530.7 345.2 328.4 335.2 391.5 340.0 197.6 Prot Margin and Leverage ratio 10.1% 11.7% 13% 15% 4.4% 5.5% -35% -49% 2.6% 1.9% -47% -64% 0.84 0.93 (11.19) (18.77) ACI salt Limited ACI Motors Limited 2010 2009 2010 2009 654.21 773.14 958.05 730.56 164.53 198.52 204.53 142.58 83.91 108.19 85.28 64.02 34.55 42.99 43.60 19.99 25.00 45.88 16.44 31.75 95.32 60.77 89.40 44.80 420.65 392.08 863.52 613.56 114.63 250.50 211.78 307.70 Prot Margin and Leverage ratio 25% 26% 21% 20% 13% 14% 9% 9% 5% 0.55 6% 0.80 5% 0.70 3% 0.87
the largest integrator in agricultural sector of Bangladesh. ACI Agribusiness deals with livestock and sheries, crop protections, seeds, fertilizer and agri-machineries. Moreover, they have another subsidiary is dealing with commodity buying, storing, preserving and selling. In 2010, they recorded sales around BDT 4059.3 million in agricultural segment, which comprised 27% of total turnover. However, the turnover has declined in 2010 than that of previous year. Agricultural business is highly volatile and mostly integrated with the critical environmental issue.
Turnover Gross Prot Operating Prot Net Prot Interest Expense Equity Total Assets Total Debt Gross prot margin Operating prot margin Net prot margin Debt to capital ratio
Turnover Gross Prot Operating Prot Net Prot Interest Expense Equity Total Assets Total Debt Gross prot margin Operating prot margin Net prot margin Debt to capital ratio
Financial Performance
In terms of revenue, ACI is one of the largest listed companies in Dhaka stock exchange. But confusion arises, if anyone notices its consolidated net prot (BDT 140 Mn), which is only 1% of total revenue. From nancial statement analysis, it has found
03
ACI Limited
Revenue growth
April 2012
that they have diversied sources of revenue. Moreover, they had opened up new businesses over the last two to three years. But unfortunately, those business contribution in terms of protability was not that much enough. The following major points will outline the companys nancial performance:
Financial leverage
In 1st quarter (2012), ACI has recorded 36% growth in sales and 22% growth in operating prot. Despite that, their consolidated earnings declined by 96% in 2012s rst quarter compared to previous year. Increasing nancial expense and declining prot from Associate and Joint ventures business were the main reasons to the immense downfall of net prot.
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ACI Limited
April 2012
2006 Revenue 3515.9 Cost of sales 2340.0 Gross prot 1175.9 Operating prot 291.4 Prot before 232.9 income tax Prot after-tax 153.8
Income statement (ACI) 2007 2008 4917.3 5958.9 3250.7 4017.4 1666.6 1941.4 431.5 616.9 431.8 1179.6 313.0 1072.7
Consolidated Income statement (ACI GROUP) 2006 2007 2008 2009 Revenue 4237.9 5756.8 10341.4 12299.7 Cost of sales 2770.6 3749.1 7289.4 8715.3 Gross prot 1467.2 2007.7 3052.0 3584.4 Operating prot 452.6 615.5 947.5 775.3 Prot before 290.4 531.8 1094.6 769.4 income tax Prot after-tax 167.9 362.6 932.9 556.7 Consolidated Balance sheet (ACI Group) 2006 2007 2008 2009 Non-current assets 1575.50 2684.14 3483.21 4271.26 Current Asset 2140.81 3228.22 5926.12 7639.33 Total Assets 3716.31 5912.36 9409.33 11910.59 Total equity 1212.25 1794.87 2812.03 3560.41 Long term 370.12 635.55 625.75 1184.70 liabilities Current 2133.81 3481.94 5971.55 7165.48 liabilities Total equity 3716.18 5912.36 9409.33 11910.59 and liabilities Financial Performance Analysis (ACI GROUP) 2007 2008 2009 Liquidity Ratio Current Ratio 0.93 0.99 1.07 Quick Ratio 1.04 0.88 1.75 Cash ratio 0.02 0.04 0.12 Activity Ratio Inventory Processing Period 135 117 122 Average Collection Period 42 48 66 Average Payment Period 12 15 26 Cash Conversion Cycle 166 150 162 Total Assets Turnover 1.20 1.35 1.15 Equity Turnover 3.83 4.49 3.86 Fixed Assets Turnover 2.7030 3.3536 3.1723 Protability Ratio Gross Prot Margin 34.9% 29.5% 29.1% Operating prot margin 10.7% 9.2% 6.3% Net Prot Margin 6.3% 9.0% 4.5% ROA 7.5% 12.2% 5.2% ROE 24.1% 40.5% 17.5% Solvency Ratio Debt to Capital Ratio 0.60 0.57 0.57 Debt to Equity Ratio 1.51 1.33 1.32 Interest coverage Ratio 3.17 1.94 1.41 Growth Analysis Sales Growth 36% 80% 19% Earnings Growth 116% 157% -40% Assets Growth 59% 59% 27% Equity Growth 51% 47% 26% Fixed Assets Growth 70% 30% 23%
2006 Non-current assets 1160.14 Current Asset 1755.05 Total Assets 2915.19 Total equity 974.07 Long term 200.08 liabilities Current 1741.04 liabilities Total equity 2915.19 and liabilities
Balance sheet of ACI 2007 2008 1609.92 1925.94 3120.89 4989.16 4730.81 6915.10 1272.10 2204.66 325.17 309.66 3133.55 4730.81 4400.78 6915.10
Financial Performance Analysis (ACI) 2007 2008 2009 Liquidity Ratio Current Ratio 1.00 1.13 1.28 Quick Ratio 1.86 1.71 2.36 Cash ratio 0.02 0.05 0.17 Activity Ratio Inventory Processing Period 101.22 131.28 127.17 Average Collection Period 47.92 49.44 47.30 Average Payment Period 11.73 20.51 26.01 Cash Conversion Cycle 137.41 160.21 148.45 Total Assets Turnover 1.29 1.02 0.99 Equity Turnover 4.38 3.43 2.65 Fixed Assets Turnover 3.55 3.37 3.36 Protability Ratio Gross Prot Margin 34% 33% 33% Operating prot margin 9% 10% 9% Net Prot Margin 6% 18% 14% ROA 8% 18% 14% ROE 28% 62% 36% Solvency Ratio Debt to Capital Ratio 0.55 0.50 0.41 Debt to Equity Ratio 1.20 1.01 0.69 Interest coverage Ratio 3.82 2.67 3.24 Growth Analysis Sales Growth 40% 21% 21% Earnings Growth 104% 243% -8% Assets Growth 62% 46% 12% Equity Growth 31% 73% 47% Fixed Assets Growth 39% 20% 23%
2010 1.42 2.38 0.04 117.04 49.55 20.81 145.78 0.91 2.06 2.53 36% 11% 7% 7% 15% 0.45 0.83 7.22 10% -40% 25% 38% 64%
2010 1.05 1.31 0.04 105 66 25 146 1.11 3.42 2.6505 28.6% 6.4% 1.0% 1.1% 3.3% 0.57 1.35 1.74 18% -75% 20% 37% 56%
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