Karachi August 29 2023: Sanofi – Aventis Pakistan Limited change its name to “Hoechst Pakistan Limited” after take over by local consortium of investors.
During the year, an Investor Consortium led by Packages Limited (comprising Packages Limited, IGI Investments (Private) Limited and affiliates of Arshad Ali Gohar Group) acquired entire 52.87 percent shares held by Sanofi Foreign Participations B.V in the Company on April 28, 2023 in accordance with the terms of the Share Purchase Agreement executed between the parties on April 29, 2022. Earlier, Packages Limited also acquired a 6.07 percent shareholding in the Company as a result of mandatory tender offer on August 23, 2022, in accordance with the applicable Takeover Laws.
The Board of Directors of your Company, in its meeting held on August 08, 2023, has considered, and approved to change the name of the Company from “Sanofi – Aventis Pakistan Limited” to “Hoechst Pakistan Limited”, subject to applicable corporate and regulatory approvals and completion of necessary legal formalities under applicable laws.
“This proposed change of name will not have any impact on the principal line of business of the Company and is being carried out in accordance with the terms of Share Purchase Agreement executed between Sanofi Foreign Participations B.V and the Investor Consortium” says Company Chairman Syed Babar Ali.
Total net sales for the six-month period ended June 30, 2023, stand at PKR 10,048 million, which grew by 6 percent compared to the same period last year. This growth was mainly driven by Clexane®️, Enterogermina®️ and Lantus®️ which grew by 38 percent, 36 percent and 16 percent respectively.
The gross margin has declined from 28 percent to 25 percent as compared to the same period last year primarily on account of high imported raw material costs and unprecedented inflation. Distribution and marketing expenses decreased to 12 percent of net sales from 14 percent in last year’s comparative period mainly on account of curtailment of travelling and promotional activities. Administrative expenses remained stable at 4 percent of net sales; as they were in the same period last year.
Other expenses increased significantly to 12 percent of net sales from 3.26 percent in last year’s comparative period primarily on account of adverse exchange rate movement resulting from an exchange loss of PKR 1,070 million.
Furthermore, the challenging socio-political and macroeconomic factors including surging inflation, increasing policy rates and reduction in economic activity have a cascading impact on your Company’s performance during the period under review. The cumulative impact of aforementioned factors has transpired into a loss after tax for the six-month period ended June 30, 2023, amounting to PKR 522 million as compared to a profit after tax of PKR 189 million during corresponding period of the year 2022.
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