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Report No. : |
325923 |
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Report Date : |
10.06.2015 |
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) : |
31.12.2014 |
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Year 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 : |
Subject is 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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No. of Employees : |
1,470 |
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 |
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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Pakistan |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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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-fourth of output and two-fifths of employment. Textiles account for most of Pakistan's export earnings, and Pakistan's failure to diversify its exportshas left the country vulnerable to shifts in world demand. Official unemployment was 6.9% in 2014, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Pakistan’s human development continues to lag behind most of the region.. As a result of political and macroeconomic instability, the Pakistani rupee has depreciated more than 40% since 2007. The government agreed to an International Monetary Fund Standby Arrangement in November 2008 to preventa balance of payments crisis, but the IMF ended the Arrangement early because of Pakistan’s failure to implement required reforms. The economy has stabilized, it continues to underperform and foreign investment has not returned to levels seen during themid-2000’s, due to investor concerns related to governance, electricity shortages, , and a slow-down in the global economy. Remittances from overseas workers, averaging more than$1 billion a month, remain a bright spot for Pakistan. After a small current account surplus in fiscal year 2011 (July 2010/June 2011), Pakistan's current account turned to a deficit where it remained through 2014, spurred by higher prices for imported oil and lower prices for exported cotton. In September 2013, after facing balance of payments concerns, Pakistan entered into a three-year, $6.7 billion IMF Extended Fund Facility. The Sharif government has since made modest progress implementing fiscal and energy reforms, and in December 2014 the IMF described Pakistan’s progress as “broadly on track.” Pakistan remains stuck in a low-income, low-growth trap, with growth averaging about 3.5% per year from 2008 to 2014. Pakistan must address long standing issues related to government revenues and the electricity and natural gas sectorsin 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.
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Source
: CIA |
ABBOTT
LABORATORIES PAKISTAN LIMITED
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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) 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)
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 |
|
Mr.
Munir A. Shaikh Mr.
Arshad Saeed Husain Mr.
Kamran Y. Mirza Mr.
Ehsan Ali Malik Mr.
Syed Anis Ahmed Mr.
Atif Aslam Bajwa Mr.
Shamim Ahmad Khan |
Chairman Chief Executive Director Director Director Director Director |
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Categories |
Percentage (%) |
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Associated
Companies, Undertaking and Related Parties Mutual Funds Directors and
their spouse(s) and minor children Executives Public Sector
Companies and Corporations Banks,
Development Finance Institutions, Non-Banking Finance
Institutions, Insurance Companies, Takaful, Modaraba and
Pension Funds Others Individuals |
78.84 4.12 0.04 0.02 0.85 0.43 6.11 9.58 |
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
1,470
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)
The Bank of Tokyo-Mitsubishi UFJ Limited.
8)
Barclays Bank PLC.
Sound
Net sales for the
year increased 14% over prior year. Gross Profit ratio remained at 38%, the
same as of previous year. Increase in selling and distribution expenses is
mainly attributable to realignment of our field force and the induction of
trade team. Further, freight and forwarding expenses increased due to unusual
political situation during the year which resulted in unavailability of
containers, hence increased freight charges.
During the year,
the 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 pharmaceutical
industry in Pakistan is currently estimated at US $ 2.3 billion as per IMS
December 2014 growing at, 11% MAT. The absence of a proactive regulatory
environment and a rational pricing framework is inhibiting the development of
pharmaceutical industry. Pakistan’s pharmaceutical / nutrition market grew by
approximately 11.9% in 2014 (IMS Dec. 2014, MAT). The Company achieved a growth
of 17.8% consolidating its position as the second largest pharmaceutical
company in Pakistan. Abbott Pakistan achieved a market share of 6.9% as per IMS
(Dec 2014, MAT) in the pharmaceutical and nutrition market (2013 market share:
6.6%). The Company manufactures over 196 SKUs of different pharmaceutical and
general health care products for local and export markets
Pharmaceutical
sales for the year increased by 15% over prior year mainly due to unit growth
and improved product-mix. Anti-infectives, gastro preparations, pain
management, anti-epileptics and women health recorded strong double digit growth.
Nutritional sales for the year posted 18% growth over prior year due to volume
and selective price increases in certain products.
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.
·
KCCI
·
FPCCI
·
PPMA
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 102.65 |
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UK Pound |
1 |
Rs. 156.60 |
|
Euro |
1 |
Rs. 114.10 |
Subject Company is well known and directors are resourceful and
experienced businessmen. Payments to creditors 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.63.94 |
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|
1 |
Rs.98.27 |
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Euro |
1 |
Rs.72.37 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
VNT |
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 |
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 |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.