Karachi August 29 2023: Pakistan Aluminium Beverage Cans Limited, the can supplier of Coca-Cola Pakistan, export sales are more than its local sales in first half of 2023 as domestic economy slow down, according to information shared by the company.
The share price of the company decline PKR 2.27 or 4.27 percent at Pakistan Stock Exchange after the announcement.
During the first half of 2023, Pakistan Aluminium Beverage Cans Limited (PABC) achieved exports worth PKR 6.3 billion, a notable increase from the PKR 2.1 billion in exports during the same period the previous year. Conversely, local sales fell short of exports, totaling PKR 5.6 billion in H1 2023, in contrast to PKR 5.2 billion the previous year.
“Businesses in Pakistan are currently struggling with formidable economic challenges resulting from currency devaluation, elevated inflation, and interest rates. These factors have adversely impacted production costs and demand conditions within the country. Moreover, the scarcity of foreign exchange for imports and the consequent import restrictions have taken a toll on industrial activities in Pakistan” says Company Chief Executive Officer Azam Sakrani.
"We are well aware of these challenges and is adopting all requisite measures to navigate these
difficulties by leveraging its expertise and resources" Azam added.
“Despite facing economic challenges caused by global and domestic geopolitical factors. Notably, in the half year ending June 30, 2023, company net sales increased by PKR 4.61 billion, reaching PKR 11.12 billion, which represents a 70.83 percent increase compared to the same period last year” the company states.
The rise in revenue can be attributed to an increase in export volumes besides the devaluation of the currency. Although the overall sales volume has risen, there has been a decline in domestic sales when compared to the same period last year.
As a result of this performance, company achieved an Earnings per Share of PKR 7.52 for the half year ended June 30, 2023. Furthermore, our gross profit during the period under review was PKR 4.41 billion, representing a significant increase of 90.02 percent to the corresponding period last year. Our profit after tax has also witnessed an increase of PKR 1.14 billion, reaching PKR 2.71 billion, which represents 72.14 percent increase from the same period in last year.
Significant progress is being made in the Company's project to augment its rated can manufacturing capacity from 700 million cans annually to 1200 million cans. This expansion initiative was divided into two phases, with each phase targeting a capacity increase of 250 million cans annually. The successful commissioning of the first phase of the project in August 2022 led to a capacity augmentation of 250 million cans per year. Additionally, the finalization of the second phase is anticipated to conclude in the subsequent quarter of 2023. This enhanced capacity will empower the Company to achieve operational and cost efficiencies, better meeting the demand for aluminum beverage cans.