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Report Date : |
06.07.2013 |
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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Year of Establishments: |
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 : |
manufacturer, importer and marketing of research
based pharmaceutical, nutritional, diagnostic, hospital and consumer products
and in providing toll manufacturing services |
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No. of Employees : |
1,440 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Pakistan |
B2 |
B2 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Pakistan ECONOMIC OVERVIEW
Decades of
internal political disputes and low levels of foreign investment have led to
slow growth and underdevelopment in Pakistan. Agriculture accounts for more
than one-fifth of output and two-fifths of employment. Textiles account for
most of Pakistan's export earnings, and Pakistan's failure to expand a viable
export base for other manufactures has left the country vulnerable to shifts in
world demand. Official unemployment is under 6%, but this fails to capture the
true picture, because much of the economy is informal and underemployment
remains high. Over the past few years, low growth and high inflation, led by a
spurt in food prices, have increased the amount of poverty - the UN Human
Development Report estimated poverty in 2011 at almost 50% of the population.
Inflation has worsened the situation, climbing from 7.7% in 2007 to almost 12%
for 2011, before declining to 10% in 2012. As a result of political and
economic instability, the Pakistani rupee has depreciated more than 40% since
2007. The government agreed to an International Monetary Fund Standby
Arrangement in November 2008 in response to a balance of payments crisis.
Although the economy has stabilized since the crisis, it has failed to recover.
Foreign investment has not returned, due to investor concerns related to
governance, energy, security, and a slow-down in the global economy.
Remittances from overseas workers, averaging about $1 billion a month since
March 2011, remain a bright spot for Pakistan. However, after a small current
account surplus in fiscal year 2011 (July 2010/June 2011), Pakistan's current
account turned to deficit in fiscal year 2012, spurred by higher prices for
imported oil and lower prices for exported cotton. Pakistan remains stuck in a
low-income, low-growth trap, with growth averaging about 3% per year from 2008
to 2012. Pakistan must address long standing issues related to government
revenues and energy production in order to spur the amount of economic growth
that will be necessary to employ its growing and rapidly urbanizing population,
more than half of which is under 22. Other long term challenges include
expanding investment in education and healthcare, adapting to the effects of
climate change and natural disasters, and reducing dependence on foreign
donors.
|
Source : CIA |
ABBOTT LABORATORIES PAKISTAN LIMITED
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Registered
Address |
|
Opp: Radio Pakistan Transmission Centre, Hyderabad Road, Landhi, P.O.
Box 7229, Karachi, Pakistan |
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Tel |
92 (21) 35015049, 35015045 |
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Fax |
92 (21) 35015564 |
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Website |
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Address |
Plot No.13, Sector-20,
Korangi Industrial Area, Karachi, Pakistan |
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Tel # |
92 (21)
35046578, 35046574 |
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Fax # |
92 (21)
35044258 |
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a. |
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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b. |
Year Established |
1948 |
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c. |
Registration # |
0000192 |
|
A. F. Ferguson & Co. (Chartered Accountants) |
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The Company is incorporated in Pakistan as a limited liability company
and is listed on the Karachi and Lahore Stock Exchanges of Pakistan. |
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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. Anis A.
Shah Mr. Syed Anis
Ahmed Mr. Roland
Wolfgang Kaut Mr. Shamim
Ahmad Khan |
Chairman Chief Executive
Officer Director Director Director Director Director Director |
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Categories
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Percentage (%) |
|
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 |
78.84 2.73 0.04 --- 0.85 5.19 0.13 12.22 |
(1)
Abbott Laboratories, U.S.A.
(2)
Abbott Laboratories (Pacific) Limited.
(3)
Abbott Equity Holdings Limited
Principally
engaged in the manufacture, import and marketing of research based
pharmaceutical, nutritional, diagnostic, hospital and consumer products and in
providing toll manufacturing services.
1,440
The capacity and production of the company’s
plant is indeterminable as it is multi-product and involves varying processes
of manufacture.
Mainly exist at major cities of Pakistan
(1)
Faysal Bank Limited, Pakistan.
(2)
Citibank N.A., Pakistan.
(3)
Deutsche Bank AG, Pakistan.
(4)
MCB Bank
Limited, Pakistan.
(5)
National Bank of Pakistan.
(6)
Standard Chartered Bank, Pakistan.
(7)
HSBC Bank Middle East Limited, Pakistan.
(8)
Soneri Bank Limited, Pakistan.
Sound
Net sales for the
year increased 18% over last thirteen months period (26% increase on a 12
months comparable basis). Gross Profit ratio at 36% was 2% better compared to
the previous period when it was 34% primarily due to better product-mix,
relatively stable exchange rate vis a vis the US Dollar and effective cost
control. Profit after tax for the year under review of Rs 1,645 million
(Thirteen months period 2010: Rs 1,177 million) and Earnings Per Share for the
year were Rs 16.80 were higher than the comparable 13 and 12 months period last
year.
During the year,
your Company successfully transferred the marketing and selling rights of
Legacy Solvay Brands in Pakistan from Highnoon Laboratories Limited, following
a global acquisition of Solvay Pharmaceuticals by Abbott International, the ultimate
holding company. Pharmaceutical sales for the year under review increased by
16% over prior thirteen months period (25% increase on 12 months comparable
basis) mainly attributable to volume, improved product-mix and impact of
acquisition of Legacy Solvay brands. Vitamins and hematinics, pain management,
anti-infectives, cough and cold, anti-epileptics and gastro preparations
recorded strong double digit growth. Nutritional sales for the year posted 23%
growth over thirteen months period last year (32% increase on 12 months
comparable basis) mainly on account of volume and selective price increases on
certain products. General Health Care (GHC), Diagnostic and Diabetes Care sales
for the year grew by 28% over thirteen months period (34% increase on 12 months
comparable basis) owing primarily to focused marketing of consumer products and
increased sales of Mospel
The Pakistan
pharmaceutical industry is currently estimated at US $ 1.88 billion as per IMS
Quarter III 2011, MAT. The share of MNCs in the Pakistan pharmaceutical market
is 43% with national companies accounting for 57% of the market. The Pakistan
pharmaceutical / nutrition market grew by approximately 19.2% in 2011. (IMS
Dec. 2011, MAT). Your Company grew in line with the market and retained its
position as the second largest research based pharmaceutical company in
Pakistan.
The
company remains vulnerable in view of continued pressure on the Pak rupee and
domestic inflation. Following years of minimal price adjustments on selected
products, there is an need for an across the board price increase. Your Company
along with other members of the pharmaceutical industry continues to urge the
Government for a mutually acceptable pricing mechanism for pharmaceutical
products. In addition, the devolution of health to the provinces following the
passage of the 18th Amendment has serious implications for the
industry. Both the industry associations i.e. PPMA and Pharma Bureau agree on
the need for the establishment of a Drug Regulatory Authority at the Federal
level to manage Pharmaceutical Registration and Pricing. This is no different
to existing structures globally where Drug registration and Pricing are
coordinated by one body at a Federal level. Escalation in the cost of energy
and other inputs has put great pressure on the pharmaceutical companies. Your
company is meeting the challenge by introducing cost improvement initiatives
and product portfolio optimization. Intellectual Property Rights continues to
be a concern for the industry. Concrete efforts need to be undertaken to
discourage both piracy and counterfeiting. Effective implementation will
protect consumers, as well as the industry.
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.
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 99.00 |
|
UK Pound |
1 |
Rs. 153.60 |
|
Euro |
1 |
Rs. 133.30 |
Subject Company is well known and directors are resourceful and
experienced businessmen. Payments to creditors etc are reported as normal.
Subject can be considered for normal business dealings at usual trade terms and
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.34 |
|
UK Pound |
1 |
Rs.90.79 |
|
Euro |
1 |
Rs.77.81 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
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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---- |
NB |
New Business |
---- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.