PABC: Notes from Directors' Report Dec 2022
The sales growth is attributable to better volumes in local market and further expanding the international market.
The gross profit during the year under review was 33.41%, compared to 35.48% in the previous year.
The Company had made provision of current taxation on the basis of minimum tax liability under the Income Tax Ordinance, 2001, exemption of which has been withdrawn during the year through Finance Act 2022.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.
Capacity Expansion: The project to expand rated can manufacturing capacity from 700 million per year to 1200 million cans per year is progressing well. The project was to be completed in two phases wherein rated capacity was to be enhanced by 250 million cans in each phase. The Company announced the commissioning of the first phase of the project with rated capacity enhancement of 250 million cans per year in August 2022. The second phase was also announced in October 2022, which will be commissioned in 2023. The additional capacity will help the Company to achieve operational and cost economies and meet the demand of aluminium beverage cans more effectively.
Directors has not announced any final cash dividend for the year ended December 31, 2022.