MIRA
INFORM REPORT
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Report Date : |
16.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
RECKITT BENCKISER PAKISTAN LIMITED |
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Registered Office : |
11th Floor, State Life Building # 11, Abdullah
Haroon Road, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1951 |
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Com. Reg. No.: |
0000479 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Engaged in manufacturing and marketing of consumer
household and pharmaceutical products |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Business Name
RECKITT BENCKISER PAKISTAN LIMITED
Full Address
Registered Address
& Factory
11th Floor, State Life Building # 11, Abdullah
Haroon Road, Karachi, Pakistan
Tel 92 (21) 111-232-323, 5687104, 5687109
Fax 92 (21) 5682886
Email www.reckittbenckiser.com
Short Description Of Business
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Nature of Business |
Engaged
in manufacturing and marketing of consumer household and pharmaceutical
products |
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Year Established |
1951 |
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Registration # |
0000479 |
Branches
In Karachi, Lahore & Islamabad
Factory Location
Plot # F-18, S.I.T.E., Karachi,
Pakistan
Auditors
M/s A.F. Ferguson & Company
(Chartered
Accountants)
State Life Building, 1-C, Off: I.I. Chundrigar Road, Karachi, Pakistan
Legal Status
The Company is incorporated as a Public Limited Company. During the year, the Company by virtue of a special resolution passed at the annual general meeting and with the sanction of the High Court of Sindh reduced its share capital by 50%
Details of Directors
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Names |
Designation |
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Mr. Colin Day Mr. Ali Ahmed Khan Mr. Freddy Caspers Mr. Salvatore Caizzone Mr. David Poulter Mr. Roopak Taneja Mr. Nadir A. Jamal |
Chairman Chief Executive Director Director Director Director Director |
Shareholders
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Categories |
Shares Held |
Percentage (%) |
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Individuals Modarabas Joint Stock Companies Others Financial Institutions |
205,845 1 14,492,868 415 2,260 |
1.40 0.00 98.58 0.00 0.02 |
Holding Company
Reckitt Benckiser PLC, U.K.
is the holding company of Reckitt Benckiser Pakistan Limited (Shares held 98.55%).
Products
Engaged in manufacturing and marketing of consumer household
and pharmaceutical products
Number of Employees
400
Exporting Countries
Mainly to Gulf & Far
East Countries
Annual Production Volume
The capacity and production of the company’s plant is
indeterminable as it is multi-product and involves varying processes of
manufacture
Annual Sales Volume (Last Two
Years)
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Years |
Rupees in ‘000 |
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2005 2006 |
3,474,835/- 3,702,444/- |
Authorized Distributors
Mainly in all major cities of Pakistan
Bankers
Citibank N.A., Pakistan.
Hong Kong & Shanghai
Banking Corporation, Pakistan.
MCB Bank Limited, Pakistan.
Prime Commercial Bank
Limited, Pakistan.
Standard Chartered Bank,
Pakistan.
Allied Bank Limited,
Pakistan.
Financial Performance
Gross Sales for the year 2006 at Rs. 4,093.09 million as
against Rs. 3,837.55 million in the previous year showed growth of 6.66%. profit
before tax for the current year at Rs. 664.70 mn is a reasonable increase over
the PBT for the last year viz Rs. 517.4 mn which is mainly attributable to the
growth in major product categories. Net sales of Household products at Rs.
2,348 mn are in increase of 13.35% over the last year primarily on account of
good volume growth in a few key categories which are being backed by
significant marketing spend. The overall sales of the Pharmaceuticals segment
showed a decrease and the sales were Rs. 1,354.4 mn as against sales of Rs.
1,403.4 mn in 2005 with some categories having done better versus last year
whereas certain others under-performed.
Future Outlook
The Company will continue to be aggressive in the market and
will keep focus on increasing its brand portfolio and its market share combined
with business simplification and cost reduction measures. Opportunities for
extending the product portfolio will continue to be explored so as to ensure
top line growth.
Memberships
Pakistan Pharmaceutical Manufacturers Associations.(PPMA)
Karachi Chamber of Commerce & Industry.(KCCI)
Foreign Exchange Rates
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Currency |
Unit |
Pakistani Rupee |
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US Dollar |
1 |
Rs. 61.23 |
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UK Pound |
1 |
Rs. 124.80 |
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Euro |
1 |
Rs. 89.25 |
Comments
Subject Company enjoys good reputation internationally as well as in Pakistan. All the Directors of the Company are reported as qualified, experienced and resourceful businessmen. Payments are usually correct and as per commitments. The Company can be considered for normal business dealings at usual trade terms and conditions.
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RECKITT BENCKISER PAKISTAN LIMITED |
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BALANCE SHEET AS AT DECEMBER 31, 2006 |
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2006 |
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2005 |
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(Rupees in
thousand) |
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SHARE CAPITAL AND RESERVES |
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Authorised capital |
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50,000,000 ordinary shares of Rs. 10/- each |
500,000 |
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500,000 |
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Issued, subscribed and paid-up capital |
147,014 |
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294,028 |
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Reserves - Capital |
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26,600 |
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26,600 |
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Unappropriated profit |
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92,860 |
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68,407 |
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266,474 |
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389,035 |
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DEFERRED LIABILITY - Staff gratuity |
55,549 |
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82,415 |
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CURRENT LIABILITIES |
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Creditors, accrued and other liabilities |
1,085,640 |
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1,064,736 |
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Taxation |
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115,464 |
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137,704 |
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Dividends |
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151,531 |
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91,818 |
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1,352,635 |
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1,294,258 |
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COMMITMENTS |
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1,674,658 |
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1,765,708 |
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FIXED ASSETS |
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177,779 |
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170,355 |
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DEFERRED TAXATION |
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45,151 |
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47,964 |
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LONG TERM LOANS AND ADVANCES |
3,712 |
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3,501 |
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LONG-TERM DEPOSITS |
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55 |
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55 |
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CURRENT ASSETS |
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Stock-in-trade |
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425,104 |
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310,216 |
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Trade debts |
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52,867 |
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42,058 |
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Loans and advances |
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5,283 |
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17,491 |
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Short-term deposits and prepayments |
6,839 |
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10,632 |
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Accrued interest |
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9,235 |
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3,257 |
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Other receivables |
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388 |
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30,841 |
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Cash and bank balances |
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948,245 |
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1,129,338 |
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1,447,961 |
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1,543,833 |
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1,674,658 |
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1,765,708 |
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PROFIT & LOSS ACCOUNT |
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FOR THE YEAR ENDED DECEMBER 31, 2006 |
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2006 |
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2005 |
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(Rupees in
thousand) |
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Sales |
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3,702,444 |
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3,474,835 |
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Cost of sales |
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(1,904,302) |
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(2,002,125) |
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Gross profit |
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1,798,142 |
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1,472,710 |
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Selling, marketing and administrative expenses |
(1,231,976) |
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(1,010,610) |
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566,166 |
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462,100 |
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Other operating expenses |
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(56,925) |
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(40,062) |
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Other operating income |
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157,155 |
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96,177 |
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Profit from operations |
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666,396 |
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518,215 |
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Financial expenses |
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(1,697) |
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(816) |
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Profit before taxation |
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664,699 |
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517,399 |
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Taxation |
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(213,906) |
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(185,434) |
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Profit after taxation |
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450,793 |
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331,965 |
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Unappropriated profit brought forward |
68,407 |
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1,067 |
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519,200 |
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333,032 |
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Appropriations: |
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Interim dividend at Rs. 19 per share (2005: Rs. 6 per share) |
(279,326) |
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(176,417) |
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Final dividend at Rs. 10 per share (2005: Rs. 3 per share) |
(147,014) |
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(88,208) |
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(426,340) |
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(264,625) |
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92,860 |
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68,407 |
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)