IBL HealthCare Limited

With You
all the WAY

Quarterly Report September 2013

Directors Report
The Directors are pleased to present the condensed interim financial statements of your Company for
the period ended September 30, 2013. These condensed interim financial statements are submitted
in accordance with section 245 of the Companies Ordinance, 1984.
OPERATING RESULTS

Revenue
Gross profit
Operating expenses
Operating profit
Profit before taxation
Profit after taxation

September 30,
2013
2012
(Rupees in thousand)
245,564
194,988
88,044
52,889
33,165
27,131
54,879
25,758
55,608
25,059
45,179
21,491

Turnover of the Company rose to PKR 246 million increased by 26% over the corresponding period last
year.
During the period our major segments have shown good performance. Infants Nutritional Healthcare
Segment showed a growth in sales of approximately 36% and our Adult Nutritional Segment showed a
growth of 45% over the same corresponding period last year.
Gross margin during the period under review stood at 36%, as against 27% reported in the same period
last year. The said increase is mainly due to our increased focus on our high margin brands coupled with
price increase on few of our products. Operating expenses were maintained at 14% of the turnover.
FUTURE OUTLOOK
The Management clearly sees remarkable growth in IBL Health Care business in the future. Our sales force
is continuously focusing on providing high quality premium nutritional products to all of the potential health
Care Professionals. The effective planning of new launches and expanding the existing coverage in the
current year will not only continue the sales momentum but also increase the sales growth.
To generate better value and increase market share, aggressive promotional campaign on infant nutrition
products, along with the introduction of children nutrition products during the year will contribute towards
the growth of our business.
For strengthening our Medical Disposable Division, new sources and products are identified for launch
during the new fiscal year to increase the business volume and profitability of the company.
ACKNOWLEDGEMENT
We wish to thank the customers for their faith in our products, and their continuing patronage. Without
their support we would not have been able to achieve these improved results.
We also take this opportunity to thank our suppliers, bankers and distributors for providing us with their
valuable support throughout the year.
Finally we wish to thank our staff who remained committed to deliver towards the growth of your Company.

For and on behalf of the board

Karachi
October 14, 2013

Mufti Zia Ul Islam

Chief Executive

Quarterly Report September 2013

01

Condensed Interim Balance Sheet

As at September 30, 2013

September 30,
June 30,
2013
2013
Unaudited
Audited
Note
Rupees in 000
Assets
Non-current assets
Property, plant and equipment
Investment property
Intangible assets
Long term loans and advances

Current assets
Stock in trade
Trade debts-unsecured
Short term loans and advances
Deposits, prepayments and other receivables
Taxation
Cash and bank balances
Total assets
Equity and liabilities
Share capital and reserves
Authorised share capital
21,000,000 oridinary shares of Rs. 10 each
Issued, subscribed and paid-up share capital
Unappropriated profit
Total equity

5
5

Liabilities
Non-current liabilities
Liabilities against assets subject to finance lease
Staff retirement benefit
Current liabilities
Trade and other payables
Current maturity of liabilities against assets subject
to finance lease
Contingencies and commitments
Total liabilities
Total equity and liabilities

6,539
123,588
32,805
502
163,434

7,529
123,588
35,064
185
166,366

177,901
188,762
789
17,531
3,702
20,892
409,577
573,011

152,835
143,073
355
16,004
3,702
15,139
331,108
497,474

210,000
200,000
217,789
417,789

210,000
200,000
172,610
372,610

3,521
3,521

1,096
9,041
10,137

149,602

113,410

2,099
151,701
155,222
573,011

1,317
114,727
124,864
497,474

The notes 1-8 are an integral part of these condensed interim financial statements.

Mufti Zia ul Islam

Chief Executive Officer
02

IBL HealthCare Limited

Syed Nadeem Ahmed

Director

Condensed Interim Profit and Loss Account

For the quarter ended September 30, 2013

September 30, September 30,

2013
2012
Unaudited
Rupees in 000
Revenue
Cost of sales
Gross profit
Selling and distribution cost
Administrative expenses
Amortization of intengible assets
Operating profit
Other operating income
Other charges
Finance cost
Profit before income tax
Income tax expense
Profit for the period
Earnings per share (Rupees)

245,564
157,520
88,044
26,705
4,201
2,259
54,879
2,201
1,045
427
55,608
10,429
45,179

194,988
142,099
52,889
21,627
3,329
2,175
25,758
1,344
512
1,531
25,059
3,568
21,491

2.26

1.07

The notes 1-8 are an integral part of these condensed interim financial statements.

Mufti Zia ul Islam

Chief Executive Officer

Syed Nadeem Ahmed

Director
Quarterly Report September 2013

03

Condensed Interim Statement of Cash Flows

For the quarter ended September 30, 2013

September 30, September 30,

2013
2012
Unaudited
Rupees in 000
Cash flows from operating activities
Profit before taxation

55,608

25,059

990
2,259
(5,520)
53,337
(25,066)
(45,689)
(434)

693
2,175
544
28,471
(21,076)
(20,197)
52

(1,527)
36,192
16,813
(317)
(10,429)
6,067

5,444
(19,527)
(26,833)
93
(3,578)
(30,318)

(314)
(314)
5,753
15,139
20,892

(291)
(291)
(30,609)
13,651
(16,958)

Adjustments for non-cash charges and other items:

Depreciation
Amortization of intangible asstes
(Reversal of) / provision for staff retirement gratuity
Increase in stock in trade
Increase in trade debts
Decrease in short-term loans and advances
(Incease) / decrease in deposits, prepayments
and other receivables
Decrease / (increase) in trade and other payables
Cash generated from / (used in) operations
Long term loans
Income tax paid
Net cash flows from operating activities
Cash flows from financing activities
Liabilities against assets subject to finance lease
Net cash flows from financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at start of period
Cash and cash equivalents at end of period
7

The notes 1-8 are an integral part of these condensed interim financial statements.

Mufti Zia ul Islam

Chief Executive Officer
04

IBL HealthCare Limited

Syed Nadeem Ahmed

Director

Condensed Interim Statement of Changes in Equity

For the quarter ended September 30, 2013

Issued,
subscribed and
paid-up share
capital

Unappropriated
profit

Total

Rupees in 000
Balance as at July 1, 2012
Profit for the period
Balance as at September 30, 2012
(unaudited)

200,000
-

121,994
21,491

321,994
21,491

200,000

143,485

343,485

Balance as at July 1, 2013

Profit for the period
Balance as at September 30, 2013
(unaudited)

200,000
-

172,610
45,179

372,610
45,179

200,000

217,789

417,789

The notes 1-8 are an integral part of these condensed interim financial statements.

Mufti Zia ul Islam

Chief Executive Officer

Syed Nadeem Ahmed

Director
Quarterly Report September 2013

05

Notes to the Condensed Interim Financial Statements

For the quarter ended September 30, 2013

General information
The Company was incorporated in Pakistan as a Private Limited Company on July 14,
1997. In November 2008 the Company was converted into Public Limited Company and
its shares have been listed on Karachi Stock Exchange. The address of its registered
office is 9th Floor, N.I.C. Building, Abbasi Shaheed Road, Karachi. The principal business
activities of the Company are marketing, selling and distribution of healthcare products.
The Company is the subsidiary of The Searle Company Limited.
These condensed interim financial statements were approved for issue on October 24,
2013.

Basis of preparation
These condensed interim financial statements have been prepared in accordance
with the requirements of International Accounting Standard No. 34, Interim Financial
Reporting and is being submitted to the shareholders as required by section 245 of the
Companies Ordinance, 1984 and the Listing Regulations of Karachi Stock Exchange.

Accounting policies
The accounting policies applied are consistent with those of the annual financial
statements for the year ended June 30, 2013, as described in those annual financial
statements.

Property, plant and equipment

No addition to Property, Plant and Equipment was made during the quarter ended
September 30, 2013.

Authorized capital

21,000,000 (June 2013: 21,000,000) ordinary

shares of Rs.10 each

September 30,
June 30,
2013
2013
Rupees in 000
210,000

210,000

200,000

200,000

Issued, subscribed and paid-up share capital

20,000,000 (June 2013: 20,000,000) fully paid
ordinary shares of Rs. 10 each
6

Contingencies and commitments

Letter of credit outstanding during the period amounted to Rs.178 million (June 2013:
Rs. 176 million) of which the amount remaining unutilized was Rs.87 million.

06

IBL HealthCare Limited

Cash and cash equivalents

Cash and bank balance

8

September 30,
June 30,
2013
2013
Rupees in 000
20,892

15,139

Related party transactions

8.1 The Company is controlled by The Searle Company Limited which owns 50% of the
Companys shares. The remaining 50% of the shares are widely held. IBL Operations
Private Limited and International Franchises Private Limited are associated company on
the basis of common directorship.
8.2 During the quarter ended September 30, 2013, sales, share of employee costs and
expenses amounting to Rs. Nil (quarter ended September 30, 2012: Rs. 1.17 million)
were charged by The Searle Company Limited. As at September 30, 2013, an amount of
Rs. 0.02 million (June 30, 2013: Rs. 0.8 million) was due to The Searle Company Limited
in respect of such expenses. As at September 30, 2013, an amount of Rs. 0.13 million
(September 2012: 0.41 million) is due from The Searle Company Limited in respect of
the sales.
8.3 During the quarter ended September 30, 2013, sales of Rs. 188.79 million (quarter ended
September 30, 2012: Rs. 139.04 million) were made to IBL Operations Private Limited.
As at September 30, 2013, an amount of Rs. 11.07 million (September 30, 2012: Rs.
98.03 million) is due from IBL Operations Private Limited in respect of the sales.
8.4 During the quarter ended September 30, 2013, share of employee costs and expenses
amounting to Rs. 0.13 million (quarter ended September 30, 2012: Rs. 0.20 million)
were charged to International Franchises Private Limited. As at September 30, 2013, an
amount of Rs. Nil (June 30, 2013: Rs.Nil) was due from International Franchises Private
Limited in respect of such expenses.

Mufti Zia ul Islam

Chief Executive Officer

Syed Nadeem Ahmed

Director
Quarterly Report September 2013

07

Notes

08

IBL HealthCare Limited

IBL HealthCare Limited

9th Floor, N.I.C. Building, Abbasi Shaheed Road,
Off: Shahrah-e-Faisal, Karachi-75530
www.searlecompany.com/iblhc