MIRA
INFORM REPORT
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Report Date : |
11.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
ABBOTT LABORATORIES PAKISTAN LIMITED |
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Registered Office : |
Opp: Radio Pakistan Transmission Centre, Hyderabad Road,
Landhi, P.O. Box 7229, Karachi |
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Country : |
Pakistan |
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Financials (as on) : |
30.11.2007 |
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Date of Incorporation : |
1948 |
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Com. Reg. No.: |
0000192 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Manufacture, Import and Marketing of Research Based
Pharmaceutical, Nutritional, Diagnostic, Hospital and Consumer Products and
in Providing Toll Manufacturing Services |
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
ABBOTT LABORATORIES PAKISTAN LIMITED
Full Address
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Registered Address |
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Opp: Radio Pakistan Transmission Centre, Hyderabad Road, Landhi,
P.O. Box 7229, Karachi, Pakistan |
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Tel |
92 (21) 5015049, 5015045
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Fax |
92 (21) 5015564 |
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Website |
Factory Location
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Address |
Plot No.13, Sector-20,
Korangi Industrial Area,
Karachi, Pakistan |
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Tel # |
92 (21) 5046578, 5046574 |
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Fax # |
92 (21) 5044258 |
Short Description Of Business
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Nature of Business |
Principally engaged in the manufacture, import and marketing
of research based pharmaceutical, nutritional, diagnostic, hospital and
consumer products and in providing toll manufacturing services |
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Year Established |
1948 |
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Registration # |
0000192 |
Auditors
A. F. Ferguson & Co.
(Chartered Accountants)
Legal Status
The Company is incorporated in Pakistan as a limited liability company and is listed on the Karachi and Lahore Stock Exchanges of Pakistan.
Details of Chief
Executive/Directors
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Names |
Designation |
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Mr. Munir A. Shaikh Mr. Asif Jooma Mr. Kamran Y. Mirza Mr. Thomas C. Freyman Mr. Imran A. Halai Mr. Shamim Ahmad Khan Mr. Aamer M. Malik |
Chairman Chief Executive Director Director Director Director Director |
Categories of Shareholders
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Categories |
Percentage (%) |
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Associated Companies, Undertakings and Related Parties NIT & ICP Directors, CEO and their Spouses Executives Public Sector Companies and Corporations Banks, Development Finance Institutions, Non-Banking Finance Institutions, Insurance Companies, Modaraba and Mutual Funds Others Individuals |
78.85 5.36 0.36 0.01 1.85 1.83 0.12 11.62 |
Associated Companies
Abbott Laboratories,
U.S.A.
Abbott Laboratories (Pacific) Limited.
Abbott Equity Holdings Limited
Products
Principally engaged
in the manufacture, import and marketing of research based pharmaceutical,
nutritional, diagnostic, hospital and consumer products and in providing toll
manufacturing services.
Number of Employees
1,421
Capacity And Production
The
capacity and production of the company’s plant is indeterminable as it is
multi-product and involves varying processes of manufacture.
Distributors Network
Mainly in all major cities
of Pakistan
Bankers
(1) ABN Amro Bank, NV.
(2) Deutsche Bank AG.
(3) MCB Bank Limited.
(4) National Bank of Pakistan.
(5) Standard Chartered Bank.
(6) The Hongkong & Shanghai Banking Corporation
Limited
(7) Citibank N.A.
(8) The Bank of Tokyo-Mitsubishi UFG Ltd.
Financial Position
Extremely Sound
Future Outlook
Company’s profitability as internal efficiency improvements alone cannot counter the impact of continuous high inflation. Company therefore strongly urges the government to arrive at a mechanism whereby price increase in registered products is allowed in line with inflationary trends in Pakistan. Further, an appropriate and consistent mechanism for determining the prices of new products also needs to be implemented by the government. It is also hoped that the government would effectively implement the recent directive of the Supreme Court to stop the unlicensed sale of drugs.
Company’s Profile
Abbott Laboratories is a highly diversified global health care company devoted to the discovery, development, manufacture and marketing of Pharmaceutical, Nutritional and medical products. With over 70,000 employees worldwide and a global presence in more than 130 countries, Abbott is committed to improving people's lives by providing cost effective health care products and services that consistently meet the needs of our customers. Abbott Pakistan is part of the global healthcare corporation of Abbott Laboratories, Chicago, USA. Abbott started operations in Pakistan as a marketing affiliate in 1948; the company has steadily expanded to comprise a work force of over 1500 employees. Currently two manufacturing facilities located at Landhi and Korangi in Karachi continue to use innovative technology to produce top quality pharmaceutical products. Abbott Pakistan has leadership in the field of Pain Management, Anesthesia, Medical Nutrition and Anti-Infectives. Our wide range of products is managed and marketed through three marketing arms. On June 29, 2005 Abbott Pakistan Achieved Class 'A' accreditation against the Oliver Wight ABCD Check list. This was an outstanding achievement, which puts Abbott Pakistan amongst some of the best global companies in terms of operational excellence.
Foreign Exchange Rates
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Currency |
Unit |
Pakistani Rupee |
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US Dollar |
1 |
Rs. 76.40 |
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UK Pound |
1 |
Rs. 134.30 |
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Euro |
1 |
Rs. 107.40 |
Comments
Subject Company is well known and directors are resourceful and experienced businessmen. Payments to creditors etc are reported as normal. The Company can be considered good for normal business dealings at usual trade terms and conditions.
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BALANCE SHEET AS
AT NOVEMBER 30, 2007 |
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2007 |
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2006 |
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Note |
(Rupees in '000) |
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SHARE CAPITAL
AND RESERVES |
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Authorised capital |
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3 |
1,000,000 |
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1,000,000 |
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Issued, subscribed and paid-up capital |
4 |
979,003 |
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979,003 |
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Reserves - capital |
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46,097 |
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46,097 |
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- revenue
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2,664,173 |
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3,216,786 |
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Total Equity |
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3,689,273 |
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4,241,886 |
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NON-CURRENT
LIABILITIES |
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Deferred taxation |
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5 |
110,414 |
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44,100 |
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CURRENT
LIABILITIES |
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Trade and other payables |
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6 |
881,681 |
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749,439 |
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992,095 |
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793,539 |
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CONTINGENCIES
& COMMITMENTS |
7 |
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4,681,368 |
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5,035,425 |
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2007 |
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2006 |
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Note |
(Rupees in '000) |
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NON-CURRENT
ASSETS |
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FIXED ASSETS - property, plant
and equipment |
8 |
1,516,821 |
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1,437,023 |
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LONG-TERM LOANS
AND ADVANCES |
9 |
25,892 |
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25,306 |
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LONG-TERM
DEPOSITS |
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4,393 |
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3,394 |
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LONG-TERM
PREPAYMENT |
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5,133 |
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5,533 |
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Total
non-current assets |
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1,552,239 |
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1,471,256 |
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CURRENT ASSETS |
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Stores and spares |
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10 |
47,875 |
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52,498 |
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Stock-in-trade |
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11 |
1,363,508 |
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1,256,141 |
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Trade debts |
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12 |
128,817 |
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208,742 |
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Loans and advances - considered good |
13 |
33,369 |
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21,812 |
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Trade deposits and short-term prepayments |
14 |
101,988 |
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63,078 |
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Accrued profit |
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5,576 |
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11,739 |
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Other receivables |
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15 |
197,280 |
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45,384 |
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Taxation recoverable |
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154,598 |
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295,934 |
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Other financial assets |
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16 |
600,000 |
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600,000 |
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Cash and bank balances |
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17 |
496,118 |
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1,008,841 |
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3,129,129 |
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3,564,169 |
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4,681,368 |
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5,035,425 |
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PROFIT & LOSS
ACCOUNT |
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FOR THE YEAR ENDED NOVEMBER
30, 2007 |
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2007 |
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2006 |
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Note |
(Rupees in
'000) |
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Sales - net |
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18 |
6,546,371 |
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5,887,748 |
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Service fee for toll manufacturing |
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38,083 |
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26,433 |
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6,584,454 |
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5,914,181 |
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Cost of goods sold and services |
19 |
3,850,568 |
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3,435,553 |
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Gross Profit |
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2,733,886 |
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2,478,628 |
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Selling and distribution expenses |
21 |
844,524 |
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877,137 |
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Administration expenses |
22 |
110,667 |
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136,563 |
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Operating profit |
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1,778,695 |
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1,464,928 |
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Other operating income |
23 |
173,394 |
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108,722 |
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Other operating charges |
24 |
179,859 |
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130,020 |
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Operating profit |
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1,772,230 |
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1,443,630 |
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Finance cost |
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25 |
3,202 |
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3,660 |
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Profit before taxation |
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1,769,028 |
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1,439,970 |
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Taxation - net |
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26 |
559,435 |
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439,962 |
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1,209,593 |
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1,000,008 |
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Earnings per share - basic and diluted |
27 |
12.36 |
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10.21 |
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.77 |
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UK Pound |
1 |
Rs.80.67 |
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Euro |
1 |
Rs.64.20 |
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%)