Sunday 9 April 2023

Pakistan Aluminium Beverage Cans Ltd

PABC: Notes on Full year December 2022 earnings.

EPS: PK₨ 7.48 (vs PK₨ 4.37 in FY 2021). No cash dividend. 

In the fourth quarter PABC earned only Rs. 0.65 per share, which is down 74 on the third quarter and 85% on the same quarter last year.

In the fourth quarter PABC sales declined substantially compared to third quarter and last year. Higher tax charges also affected the profit for the fourth quarter for the year ending Dec 2022. 

Despite a 71% rise in profits no dividend was declared. Directors cited economic conditions for not giving the shareholders there due. There are signs in this as to the future dividend expectations. This corporate behavior is a major issue in the stock market of Pakistan. 

Share Price (Rs.)3 Month1 Year
40.5-1.34%37.29%


In the last quater PABC made a provision of income tax on the basis of minimum tax liability under the Income Tax Ordinance, 2001, exemption of which has been withdrawn during the year through Finance Act 2022. The Company has filed petition against chargeability of minimum tax under section 113 of the Ordinance as the Company is operating in special economic zone.

On annual basis:
Gross Profit increased by 84%.
Revenue increased by 96%.
PBT increased by 99% because of increase in other income.
PAT increased by 71%.

PABC: Pakistan Beverage Cans Ltd
Income Statement - Annual
Dec 2022Dec 2021Dec 2020
(Rs in millions)
Sales14,1537,2305,084
Gross Profit4,7282,5651,542
Operating Expenses1,411754414
Other Income2234617
Operating Profit3,8542,2491,296
Financial Charges409286423
Profit before Taxation3,1311,571698
Taxation-4295-87
Profit after Taxation2,7031,577611
EPS7.484.371.69
Cash dividend01.50
GP Margin33%35%30%
Tax Rate14%0%12%


PABC trading at PE of less than 8 and price to book of less than 3. The marker cap of PABC is Rs. 14.6 billion.

See More at PSX/PABC