Colgate Palmolive Pakistan : TRANSMISSION OF QUARTERLY REPORT FOR THE QUARTER/PERIOD ENDED 31 MARCH 2024

THIRD QUARTER REPORT

JANUARY - MARCH 2024

CONTENTS

Page

COMPANY INFORMATION	2
DIRECTORS' REVIEW	3-4
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION	5
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME	6
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY	7
CONDENSED INTERIM STATEMENT OF CASH FLOWS	8
NOTES TO AND FORMING PART OF THE CONDENSED
INTERIM FINANCIAL STATEMENTS	9-18
DIRECTORS' REVIEW - IN URDU	19-20

Third Quarter Report 2023-24 01

COMPANY INFORMATION

BOARD OF DIRECTORS	EXTERNAL AUDITORS
Iqbal Ali Lakhani - Chairman	A. F. Ferguson & Co.
Amin Mohammed Lakhani	Chartered Accountants
Kamran Yousuf Mirza
Syed Shahid Ali Bukhari	INTERNAL AUDITORS
Danish Zuberi	BDO Ebrahim & Co.
Peter John Graylin	Chartered Accountants
Xuan Dai
Zulfiqar Ali Lakhani - Chief Executive	SHARES REGISTRAR
	FAMCO Share Registration Services (Pvt) Ltd.
ADVISOR	8-F, Near Hotel Faran, Nursery, Block-6,
Sultan Ali Lakhani	P.E.C.H.S., Shahra-e-Faisal, Karachi.
AUDIT COMMITTEE	REGISTERED OFFICE
Kamran Yousuf Mirza - Chairman	Lakson Square, Building No. 2,
Iqbal Ali Lakhani	Sarwar Shaheed Road,
Amin Mohammed Lakhani	Karachi-74200 Pakistan
Danish Zuberi
HUMAN RESOURCE &	FACTORIES
REMUNERATION COMMITTEE	G-6, S.I.T.E., Kotri
Kamran Yousuf Mirza - Chairman	District Jamshoro (Sindh)
Iqbal Ali Lakhani
Zulfiqar Ali Lakhani	H-36 (B), S.I.T.E., Kotri
Syed Shahid Ali Bukhari	District Jamshoro (Sindh)
CHIEF FINANCIAL OFFICER	217, Sundar Industrial Estate,
Mudassir Iqbal	Raiwind Road, Lahore
COMPANY SECRETARY	WEBSITE
Mansoor Ahmed	www.colgate.com.pk

02 Third Quarter Report 2023-24

DIRECTORS' REVIEW

The directors of your Company are pleased to present the un-audited, condensed financial statements of the Company for the nine-month period ended March 31, 2024.

Financial Performance at a Glance

A brief financial analysis of the Company's performance for the period is summarized below:

Operating Results	July 2023- March 2024	July 2022- March 2023	Increase /
		(Decrease)
	Amount in PKR million
Turnover	110,863	86,386	28.33%
Net Turnover	84,025	66,141	27.04%
Gross Profit	26,280	18,157	44.74%
Gross Profit %	31.28%	27.45%	383 bps
Selling & Distribution Cost	8,223	6,905	19.09%
Administrative Expenses	866	667	29.84%
Profit from Operations	19,479	10,787	80.58%
Profit After Tax	12,098	7,193	68.19%
Earnings per Share - Rupees	49.83	29.63	68.19%

Financial Performance Highlights

The Company achieved a 28% increase in revenue, driven by both volume growth and pricing strategies. Stable commodity prices and cost-saving efforts contributed to improved gross margins. Administrative and selling expenses rose due to inflation and increased investment in advertising and brand building. As a result, net profit after tax (NPAT) and earnings per share (EPS) grew by 68% compared to the same period last year.

Business Performance Highlights

The launch of "Sweet Truth," an integrated marketing campaign, aimed to promote nighttime brushing habits. National initiatives were implemented to increase toothpaste penetration and consumption.

Intense competition in the laundry detergent category led to aggressive promotional activities from key players. While maintaining leadership in the dish-wash segment, the company faces challenges from the unorganized sector.

Third Quarter Report 2023-24 03

Future Outlook

Economic challenges are expected to persist due to high debt servicing, political uncertainty, and geopolitical instability. Economic recovery will require stringent reforms and expanding the tax base. Inflationary pressures continue to impact consumer spending, prompting the company to focus on cost reduction measures for sustainable growth.

Acknowledgement

We would like to extend our sincere gratitude to our consumers for their trust in our brands. We are thankful to our customers, distributors, supply chain partners, bankers and shareholders for their continued support. We also appreciate our employees for their relentless dedication and immense contribution to the Company.

On behalf of Board of Directors

Iqbal Ali Lakhani	Zulfiqar Ali Lakhani
Chairman	Chief Executive
Karachi : April 29, 2024

04 Third Quarter Report 2023-24

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As at March 31, 2024

Note

ASSETS

NON-CURRENT ASSETS

March 31,	June 30,
2024	2023
(unaudited)	(audited)

(Rupees in '000)

Property, plant and equipment	4
Intangible assets
Long term loans
Long term security deposits
CURRENT ASSETS
Stores and spares
Stock in trade	5
Trade debts
Loans and advances
Trade deposits and short term prepayments
Other receivables	6
Accrued profit
Short term investments	7
Cash and bank balances
TOTAL ASSETS
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorised share capital
Issued, subscribed and paid-up share capital	8
Reserves
Remeasurement of post retirement benefits obligation
LIABILITIES
NON-CURRENT LIABILITIES
Deferred taxation
Long term deposits
Deferred liability
Long-term financing	9
Deferred grant
Lease liabilities
CURRENT LIABILITIES
Trade and other payables	10
Accrued mark-up
Current maturity of long-term financing
Current maturity of lease liabilities
Taxation - net
Unpaid dividend	11
Unclaimed dividend	12
TOTAL LIABILITIES
CONTINGENCIES AND COMMITMENTS	13

8,544,166

4,777

91,895

24,538

8,665,376

899,892

15,227,111

2,265,346

632,257

108,657

2,638,410

54,303

21,324,141

6,346,524

49,496,641

58,162,017

2,500,000

2,427,733

27,586,256

(275,285)

29,738,704

479,223

49,807

75,963

641,060

247,360

257,670

1,751,083

19,687,612

6,652

140,606

52,922

2,768,339

3,970,561

45,538

26,672,230

28,423,313

7,836,920

7,198

76,180

21,260

7,941,558

701,919

15,356,715

2,017,453

459,913

171,500

1,013,343

29,639

14,262,005

5,492,509

39,504,996

47,446,554

2,500,000

2,427,733

22,164,400

(275,285)

24,316,848

392,697

51,264

191,865

702,580

291,488

290,452

1,920,346

16,494,293

7,056

109,465

66,001

1,684,759

2,811,659

36,127

21,209,360

23,129,706

TOTAL EQUITY AND LIABILITIES

58,162,017

47,446,554

The annexed notes 1 to 21 form an integral part of these condensed interim financial statements.

Iqbal Ali Lakhani	Zulfiqar Ali Lakhani	Mudassir Iqbal
Chairman/Director	Chief Executive	Chief Financial Officer

Third Quarter Report 2023-24 05

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (Unaudited)

For the Quarter and Nine months period ended March 31, 2024

Note	Quarter	Quarter	Period	Period
	ended	ended	ended	ended
	March 31,	March 31,	March 31,	March 31,
	2024	2023	2024	2023
			(Rupees in '000)

Turnover

Sales tax

Trade and other discounts

Net turnover

Cost of sales

Gross profit

Selling and distribution cost
Administrative expenses
Other expenses
Other income	15
Profit from operations
Finance cost and bank charges

Profit before taxation

Taxation

• Current - for the period
• • for prior period
• Deferred

Profit after taxation

Other comprehensive income for the period

Total comprehensive income for the period

Earnings per share
- basic and diluted	16

38,374,850				31,655,842				110,863,441			86,386,476
(6,379,721)				(5,073,974)				(18,345,406)			(13,613,832)
(3,041,609)				(2,385,157)				(8,492,996)			(6,631,526)
28,953,520				24,196,711				84,025,039			66,141,118
	(19,108,170)					(16,937,130)					(57,745,409)				(47,983,935)
9,845,350				7,259,581				26,279,630			18,157,183
(2,733,985)				(2,367,642)				(8,223,101)			(6,904,999)
(292,781)				(232,366)				(866,229)			(667,055)
(561,332)				(588,209)				(1,412,605)			(1,042,575)
1,283,339				461,027				3,701,372			1,244,553
7,540,591				4,532,391				19,479,067			10,787,107
	(38,487)					(36,941)					(125,260)				(111,818)
7,502,104				4,495,450				19,353,807			10,675,289
	(2,761,466)					(1,438,979)					(7,195,876)				(3,409,494)
	37,861					(15,163)					26,716				77,465
	(2,723,605)					(1,454,142)					(7,169,160)				(3,332,029)
	(51,823)					(65,020)					(86,526)				(149,969)
	(2,775,428)					(1,519,162)					(7,255,686)				(3,481,998)
4,726,676				2,976,288				12,098,121			7,193,291
-				-				-			-
	4,726,676					2,976,288					12,098,121				7,193,291
								(Rupees)
							(Restated)								(Restated)
19.47				12.26			49.83			29.63

The annexed notes 1 to 21 form an integral part of these condensed interim financial statements.

Iqbal Ali Lakhani	Zulfiqar Ali Lakhani	Mudassir Iqbal
Chairman/Director	Chief Executive	Chief Financial Officer

06 Third Quarter Report 2023-24

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (Unaudited)

For the Quarter and Nine months period ended March 31, 2024

		Issued,			Reserves				Remeasurement
		subscribed													on post retire-
	Capital		Revenue reserves			Sub		Total
		and paid up					ment benefits
		reserve-		General		Unappro-		Total-		Equity
	share capital	share					obligation- net
		reserve		priated		reserves
				premium			profit				of tax
							(Rupees in '000)
Balance as at July 1, 2022	727,956		13,456	17,920,000)	4,088,766)		22,022,222)	(201,936)		22,548,242)
Transactions with owners
Final dividend for the year ended
June 30, 2022 at the rate of		-		-		-				(2,038,276)			(2,038,276)		-		(2,038,276)
Rs 28 per share
Bonus shares issued at the rate of three		109,193		-		-				(109,193)			(109,193)		-		-
shares for every twenty shares held
Interim dividend for the period ended
December 31, 2022 at the rate of		-		-		-				(1,674,297)			(1,674,297)		-		(1,674,297)
Rs 20 per share
Interim bonus shares issued at the rate of		376,718		-		-				(376,718)			(376,718)		-		-
nine shares for every twenty shares held
Total transactions with owners	485,911		-	-			(4,198,484)		(4,198,484)	-		(3,712,573)
Comprehensive income for the period
Profit after taxation for the period ended		-		-		-				7,193,291)			7,193,291)		-		7,193,291)
March 31, 2023
Other comprehensive income		-		-		-				-			-			-		-
Total comprehensive income for the
-		-	-			7,193,291)		7,193,291)	-		7,193,291)
period ended March 31, 2023
Transfer to general reserve		-		-		1,941,000)	(1,941,000)		-		-		-
Balance as at March 31, 2023		1,213,867		13,456		19,861,000)	5,142,573)		25,017,029)	(201,936)		26,028,960)
Balance as at July 1, 2023	2,427,733		13,456	19,861,000)	2,289,944)		22,164,400)	(275,285)		24,316,848)
Transactions with owners

Final dividend for the year ended June 30, 2023 at the rate of Rs 5 per share

Interim dividend for the year ended June 30, 2024 at the rate of Rs 22.5 per share

Total transactions with owners

Comprehensive income for the period

Profit after taxation for the period ended March 31, 2024

Other comprehensive income

Total comprehensive income for the period ended March 31, 2024

Transfer to general reserve

Balance as at March 31, 2024

-

-

-

-

-

-

-

2,427,733

-

-

-

-

-

-

-

13,456

-		(1,213,866)	(1,213,866)
-		(5,462,399)	(5,462,399)
-		(6,676,265)	(6,676,265)
-		12,098,121)		12,098,121)
-		-		-

• 12,098,121) 12,098,121)

1,057,000)

(1,057,000)

-

20,918,000) 6,654,800) 27,586,256)

• (1,213,866)
• (5,462,399)
• (6,676,265)
• 12,098,121)

-

-

• 12,098,121)
• -
  (275,285) 29,738,704)

The annexed notes 1 to 21 form an integral part of these condensed interim financial statements.

Iqbal Ali Lakhani	Zulfiqar Ali Lakhani	Mudassir Iqbal
Chairman/Director	Chief Executive	Chief Financial Officer

Third Quarter Report 2023-24 07

CONDENSED INTERIM STATEMENT OF CASH FLOWS (Unaudited)

For the Quarter and Nine months period ended March 31, 2024

Note Period ended	Period ended
March 31,	March 31,
2024	2023

-------(Rupees in '000)-------

CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations	17

Finance cost and bank charges paid Taxes paid

Staff retirement benefit paid Long term loans

Long term security deposits (assets) Long term deposits

Net cash generated from operating activities

CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment Purchase of intangible assets

Short term investments made during the period Proceeds from sale of property, plant and equipment Profit received on savings accounts

Profit received on treasury bills

Profit received on Pakistan Investment Bonds Profit received on term deposit receipts

Sale proceeds on disposal of short term investments Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES Dividend paid

Long-term financing repaid

Short-term financing repaid

Payment of lease liabilities

Net cash used in financing activities

Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period

18

20,347,798

(95,348)

(6,085,581)

(191,865)

(15,715)

(3,278)

(1,457)

13,954,554

(1,522,528)

(190)

(11,263,192)

106,782

577,034

2,671

21

128,035

4,529,464

(7,441,903)

(5,507,952)

(74,507)

-

(76,177)

(5,658,636)

854,015

5,492,509

6,346,524

12,326,551

(75,687)

(2,693,496)

(76,106)

(1,846)

(526)

(13,095)

9,465,795

(985,127)

(7,571)

(6,908,469)

68,906

340,450

1,470

-

39,263

3,261,974

(4,189,104)

(2,513,264)

(382,438)

(42,334)

(58,325)

(2,996,361)

2,280,330

2,978,308

5,258,638

The annexed notes 1 to 21 form an integral part of these condensed interim financial statements.

Iqbal Ali Lakhani	Zulfiqar Ali Lakhani	Mudassir Iqbal
Chairman/Director	Chief Executive	Chief Financial Officer

08 Third Quarter Report 2023-24

NOTES TO AND FORMING PART OF THE

CONDENSED INTERIM FINANCIAL STATEMENTS (Unaudited)

For the Quarter and Nine months period ended March 31, 2024

1. THE COMPANY AND ITS OPERATIONS
   Colgate-Palmolive (Pakistan) Limited (the Company) was initially incorporated in Pakistan on December 5, 1977 as a public limited company with the name of National Detergents Limited. The name of the Company was changed to Colgate-Palmolive (Pakistan) Limited on March 28, 1990 when the Company entered into a Participation Agreement with Colgate-Palmolive Company, USA. The Company is listed on Pakistan Stock Exchange. The registered office of the Company is situated at Lakson Square, Building No. 2, Sarwar Shaheed Road, Karachi, Pakistan.
   The Company is mainly engaged in the manufacture and sale of detergents, personal care and other related products.
2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

1. Statement of compliance
   These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting which comprise of International Accounting Standard (IAS) 34 'Interim Financial Reporting' issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017 (the Act) and provisions of and directives issued under the Act.
   Where the provisions of and directives issued under the Act differ with the requirements of IAS 34, the provisions of and directives issued under the Act have been followed.
2. These condensed interim financial statements do not include all the information and disclosures required in an annual audited financial statements, and should be read in conjunction with the Company's annual audited financial statements for the year ended June 30, 2023.
3. New standards, amendments to approved accounting standards and new interpretations

2.3.1 Amendments to approved accounting standards which are effective during the year ending June 30, 2024

There are certain amendments to approved accounting standards which are mandatory for accounting periods beginning on or after July 1, 2023 but are considered not to be relevant or have any significant effect on the Company's financial reporting and therefore, have not been disclosed in these condensed interim financial statements.

Third Quarter Report 2023-24 09