Macter International : Transmission of Half Yearly Report for the Period Ended December 31, 2022

Macter International Limited

CONTENTS

Company Information	02
Directors' Review Report	04
Auditors' Review Report	09
Un-consolidated Condensed Interim Statement of Financial Position	10
Un-consolidated Condensed Interim Statement of Profit or Loss	11
Un-consolidated Condensed Interim Statement of Comprehensive Income	12
Un-consolidated Condensed Interim Statement of Cash Flows	13
Un-consolidated Condensed Interim Statement of Changes in Equity	14
Notes to the Un-consolidated Condensed Interim Financial Statements	15
Consolidated Condensed Interim Statement of Financial Position	25
Consolidated Condensed Interim Statement of Profit or Loss	26
Consolidated Condensed Interim Statement of Comprehensive Income	27
Consolidated Condensed Interim Statement of Cash Flows	28
Consolidated Condensed Interim Statement of Changes in Equity	29
Notes to the Consolidated Condensed Interim Financial Statements	30

01

Half Yearly Report December 31, 2022

COMPANY INFORMATION

BOARD OF DIRECTORS
1.	Mr. Amanullah Kassim	Chairman	Independent Director
2.	Mr. Asif Misbah	Chief Executive	Executive Director
3.	Mr. Swaleh Misbah Khan		Executive Director
4.	Sheikh Muhammed Waseem		Non-Executive Director
5.	Syed Anis Ahmad Shah		Independent Director
6.	Sheikh Perwez Ahmed		Non-Executive Director
7.	Ms. Masarrat Misbah		Non-Executive Director
8.	Mr. Muhammad Ather Sultan		Non-Executive Director
BOARD AUDIT COMMITTEE
1.	Syed Anis Ahmad Shah	Chairman
2.	Sheikh Muhammed Waseem	Member
3.	Mr. Muhammad Ather Sultan	Member

CHIEF FINANCIAL OFFICER

Syed Khalid Noor

COMPANY SECRETARY

Mr. Asif Javed

INTERNAL AUDITORS

KPMG Taseer Hadi & Co.

Chartered Accountants

EXTERNAL AUDITORS

EY Ford Rhodes

Chartered Accountants

SHARIAH ADVISOR

Mufti Muhammad Najeeb Khan

02

Macter International Limited

BANKERS

Al Baraka (Pakistan) Limited

Allied Bank Ltd - Islamic Banking

Askari Bank Limited - Islamic Banking Branch

Bank Alfalah Ltd - Islamic Banking

Bank Al Habib Limited - Islamic Banking Branch

Bankislami Pakistan Limited

Dubai Islamic Bank Pakistan Limited

Habib Bank Limited - Islamic Banking Branch

Habib Metropolitan Bank Pakistan Limited - Islamic Banking Branch

MCB Bank Limited

MCB Islamic Bank Limited

Meezan Bank Limited

The Bank of Punjab - Taqwa Islamic Banking.

SHARE REGISTRAR

F.D. Registrar Services (Pvt) Limited

17th Floor, Saima Trade Tower-A

1. I. Chundrigar Road, Karachi Telephone: + 92 21 32271905-6 Fax: + 92 21 32621233 Email: [e-mail]

REGISTERED OFFICE

F-216, SITE, Karachi - 75700

Telephone: [phone]

Fax: [phone]

Email: [e-mail]

WEBSITE

www.macter.com

03

Half Yearly Report December 31, 2022

DIRECTORS' REVIEW REPORT

We are pleased to present the un-auditedun-consolidated and consolidated condensed interim financial statements for the Half year ended December 31, 2022:

FINANCIAL RESULTS

				Rupees Millions
		July - December
DESCRIPTION
Unconsolidated	Consolidated
	2022	2021	2022	2021
Turnover - Net	3,779	2,551	3,911	2,690
Gross profit	1,550	1,140	1,618	1,217
Gross margin	41%	45%	41%	45%
Operating Profit	394	286	382	277
Operating Margin	10%	11%	10%	10%
Profit before tax	373	260	357	247
Profit after tax	249	196	227	178

FINANCIAL PERFORMANCE

Net Turnover for the period ended 31st December 2022 at Rs. 3,779m grew by 48% over last year.

Our core prescription business grew strongly by +36% (Current period: Rs. 2,819m vs Same period Last year:

Rs. 2,076m) on account of: strong uptake of our recently launched Pegstim (Pegylated GCSF) in Oncology and Tofacnet (Tofacitinib) in Rheumatology; successful promotional campaigns for our growth brand Cobolmin (Mecobalamin); higher demand for our lead brand Titan (Ceftriaxone)due to increased incidence of gastrointestinal disease because of recent floods; increased induction of kidney dialysis patients on our Mac Epo (Erythropoietin); enhanced CME (continued medical education) events for family physicians, and improved patient flow post Covid19 pandemic.

Our institution business sales grew by +121%, on account of carry-over supplies of last year's public tender sales orders (Current period: Rs.395m vs same period Last year: Rs. 178m).

Our Exports business grew by over 60% mainly as Afghanistan market started to open post regime change.

Gross margins reduced by -4% due Rupee devaluation resulting in higher import cost of APIs and excipients and significant inflationary cost increase in packaging materials, utilities, fuel and increase in minimum wages. Imposition of additional 1% sales tax on sales and non-adjustable input sales tax have further eroded margins. Annual CPI linked price increase under the current Drug Pricing laws is insufficient to fully cover the above cost impacts.

Operating Profit increased by 38% vs. same period last year mainly attributable to higher growth in our core prescription sales, cost optimization and efficiency improvements.

Profit after Tax increased by 27% to Rs. 249m, imposition of 4% super tax has further depressed profit after tax.

04