Synthetic Products Enterprises : Transmission of Quarterly Report for the Period Ended December 2022

HALF YEARLY REPORT

Condensed Interim Statement of Financial Position	06
Condensed Interim Statement of Profit or Loss (Un-audited)	08
Condensed Interim Statement of Comprehensive Income (Un-audited)	09
Condensed Interim Statement of Changes in Equity (Un-audited)	10
Condensed Interim Statement of Cash Flows (Un-audited)	11
Notes to the Condensed Interim Financial Statements (Un-audited)	12

HALF YEARLY REPORT DECEMBER 2022

CFO and Company Secretary

Directors' Review of the Condensed Interim Financial Information

For the Period ended 31 December 2022

Dear Shareholders,

The Directors of Synthetic Products Enterprises Limited are pleased to present your Company's reviewed condensed interim financial information for the half year and quarter ended 31

December 2022 along with the Auditors' and Directors' review thereon.

Financial Analysis

	Half Year Ended	Quarter Ended
	31 Dec 2022	31 Dec 2021	31 Dec 2022	31 Dec 2021
	PKR Millions	PKR Millions	PKR Millions	PKR Millions
Sales - net	3,026.14	2,779.70	1,536.14	1,347.20
Cost of Sales	(2,517.39)	(2,237.62)	(1,220.70)	(1,109.18)
Gross Profit	508.75	542.08	315.44	238.02
Operating Profit	360.62	408.63	240.94	165.31
Profit before tax	290.06	359.58	209.64	145.00
Profit after tax	200.47	256.94	142.73	98.40
EPS - Basic (PKR)	1.00	1.29	0.71	0.49

The period under review was a challenging one due to the overall economic situation. The slowdown of the auto sector due to import restrictions, sudden and exorbitant increases in energy prices and massive currency devaluation affecting raw material prices, happened simultaneously. The Company was able to attain a sales growth of 9% by focusing on sales to its customers in the Food Packaging and FMCG sectors and by reviewing the prices of the products.

During the recent quarter, the Company was able to achieve healthy gross margins as compared to the gross margins of the immediate preceding quarter which were eroded due to higher electricity rates, rising currency exchange rates and higher inflation. Necessary remedial measures are still underway to keep the results on track.

Outlook

The demand in the food and FMCG packaging sector seems to be stable in the near future and the Company will continue to focus and serve this industry. Our sales to this sector now constitute over seventy percent of the total sales volume.

The Company remains committed to supplying quality products and delivering on time to its customers as it is our promise of reliability. The current situation should be short-lived, but the culture of the company of integrity and quality will ensure long-term success.

Acknowledgment

We would like to thank our valued customers for their confidence and trust in the Company's products. We are also thankful to all other stakeholders including dealers, suppliers, bankers, shareholders and employees for providing continuous support.

17 February 2023

Quarter Ended

31 Dec 2021	31 Dec 2022
PKR Millions	PKR Millions
1,347.20	1,536.14
(1,109.18)	(1,220.70)
238.02	315.44
165.31	240.94
145.00	209.64
98.40	142.73
0.49	0.71

Half Year Ended

31 Dec 2021	31 Dec 2022
PKR Millions	PKR Millions
2,779.70	3,026.14
(2,237.62)	(2,517.39)
542.08	508.75
408.63	360.62
359.58	290.06
256.94	200.47
1.29	1.00