Archroma Pakistan : Transmission of Quarterly Report for the Period Ended 31 Dec 2022

QUARTERLY REPORT 2023 (Oct - Dec 2022)

CONTENTS

Company Information

Directors' Report

Condensed Interim Statement of Financial Position

Condensed Interim Statement of Profit or Loss and other Comprehensive Income

Condensed Interim Statement of Cash Flows

Condensed Interim Statement of Changes in Equity

Notes to the Condensed Interim Financial Statements

COMPANY INFORMATION

Chairman	M Veqar Arif
Board of Directors	Mujtaba Rahim	-	Chief Executive Officer
	Marcos Furrer		(Alternate: Irfan Chawala)
	Michel Zumstein		(Alternate: Naveed Kamil)
	Shahid Ghaffar
	Thomas Bucher
	Yasmin Peermohammad
Audit Committee	Shahid Ghaffar	- Chairman
	Michel Zumstein		(Alternate: Naveed Kamil)
	M Veqar Arif
	Irfan Lakhani	-	Secretary
Human Resources and	Yasmin Peermohammad	- Chairperson
Remuneration Committee	Michel Zumstein	-	(Alternate: Naveed Kamil)
	Mujtaba Rahim
	Irfan Lakhani	-	Secretary
Management Committee	Mujtaba Rahim		Naveed Kamil
	Irfan Chawala		Qazi Naeemuddin
	Muhammad Altaf
Chief Financial Officer	Irfan Chawala
Company Secretary	Irfan Lakhani
Bankers	Bank Al Habib Limited
	Habib Bank Limited
	Habib Metropolitan Bank Limited
	MCB Bank Limited
	Meezan Bank Limited
	National Bank of Pakistan
	Standard Chartered Bank (Pakistan) Limited
Auditors	KPMG Taseer Hadi & Co. Chartered Accountants
Legal Advisor	Fazleghani Advocates
Share Registrar	FAMCO Associates (Pvt) Limited
	8-F, Next to Hotel Faran, Nursery
	Block-6, P.E.C.H.S.,
	Shahra-e-Faisal, Karachi
Registered Office	1-A/1, Sector 20,
	Korangi Industrial Area, Korangi, Karachi
Factories	Petaro Road, Jamshoro
	LX-10,LX-11, Landhi Industrial Area, Karachi
Sales & Marketing Offices	Katar Bund Road, Off. Multan Road,
	Thokar Niaz Baig, Lahore
	P-277, Kashmir Road, Amin Town, Faisalabad
Website	www.archroma.com.pk
Email	[e-mail]

REPORT OF BOARD OF DIRECTORS

The Directors of your Company are pleased to present their report for the first quarter ended 31 December 2022, together with the un-audited condensed interim financial information of the Company for the first quarter ended 31 December 2022.

COMPOSITION OF BOARD

The composition of the Board is as follows:

a) Male members:	6
b) Lady member:	1
Out of the above:
a) Executive Director:	1

1. Non-ExecutiveDirectors: 4
2. Independent Directors: 2

BUSINESS OVERVIEW

Archroma's major consumption Markets i.e. Textiles' and Construction Industry demand & consumer sales continued to remain slow both for local as well as exports during the first quarter of the current Financial Year under review, mainly due to higher energy & commodity prices, double-digit inflation in all other costs because of Russia-Ukraine conflict and devastating floods affecting one-third of the Country.

Despite of the above challenging environment and less than 50% production and capacity utilization for the Textiles' Industry, your Company was able to achieve net sales of PKR 5,639 million during the first quarter

On behalf of the Board

Mujtaba Rahim

Chief Executive Officer

ended 31st December 2022 versus PKR 6,761 million in comparison to the same period last year. The decline in sales of 17% was mainly contributed by Brand & Performance Textile Specialties, whose Sales reduced by 18% and Coating Adhesive & Sealants' business, whose turnover declined by 8%, whereas Packaging & Paper Specialties recorded a growth of 24% in comparison to the same period last year.

Lower production volumes and lesser capacity utilization further eroded the Company's Gross Margins and more adversely impacted the bottom-line profitability which has come down to PKR 154 million as against PKR 750 million achieved in comparison to the same period last year.

FUTURE OUTLOOK

The ongoing Russia-Ukraine conflict, Global Energy and Commodities prices and availability situation, and consequential adverse Balance of Trade and Forex reserves' situation of Pakistan, may keep the outlook for the Textiles' Exports somewhat uncertain. However, local markets' business and post- floods reconstruction activities are expected to improve the overall business development for local Textiles and Construction Industry of the Country from the new calendar year.

Your Company continues to work on many growth projects and initiatives, the benefits of which are also expected to further improve the development of stronger business portfolio, speed & agility to smartly manage cash-flows & fixed costs, going forward.

Irfan Chawala

Director

Karachi: 26 January 2023