Statement of Profit & Loss for period ending 31 December

(Amount in '000 Rupees) 2014Y 2015Y 2016Y

Net Sales 42,602,454.00 49,834,089.00 44,346,031.00

Cost of Sales (34,926,132.00) (38,303,002.00) (34,307,066.00)
Gross Profit 7,676,322.00 11,531,087.00 10,038,965.00

Distribution and marketing expenses (4,267,579.00) (4,952,143.00) (5,068,408.00)

Administrative expenses (1,282,240.00) (1,385,412.00) (920,998.00)
Other operating expenses (103,770.00) (368,648.00) (332,244.00)
Other Income 304,854.00 325,520.00 148,509.00
Operating profit 2,327,587.00 5,150,404.00 3,865,824.00

Impairment of Investment in subsidiary (596,328.00)

Finance cost (1,236,904.00) (856,419.00) (348,038.00)

Profit before taxation 494,355.00 4,293,985.00 3,517,786.00

Taxation 394,476.00 (1,131,530.00) (1,131,074.00)

Profit for the year 888,831.00 3,162,455.00 2,386,712.00

Earnings per share- basic and diluted 1.16 4.12 3.11

 Horizental Analysis Vertical Analysis

2017Y 2015Y 2016Y 2017Y 2015Y 2016Y 2017Y

34,653,486.00 16.97% -11.01% -21.86% - - -

(29,017,336.00) 9.67% -10.43% -15.42% 76.86% 77.36% 83.74%
5,636,150.00 50.22% -12.94% -43.86% 23.14% 22.64% 16.26%

(3,933,248.00) 16.04% 2.35% -22.40% 9.94% 11.43% 11.35%

(852,099.00) 8.05% -33.52% -7.48% 2.78% 2.08% 2.46%
(121,870.00) 255.25% -9.88% -63.32% 0.74% 0.75% 0.35%
358,541.00 6.78% -54.38% 141.43% 0.65% 0.33% 1.03%
1,087,474.00 121.28% -24.94% -71.87% 10.34% 8.72% 3.14%

(524,497.00) -30.76% -59.36% 50.70% 1.72% 0.78% 1.51%

562,977.00 768.60% -18.08% -84.00% 8.62% 7.93% 1.62%

(183,680.00) -386.84% -0.04% -83.76% 2.27% 2.55% 0.53%

379,297.00 255.80% -24.53% -84.11% 6.35% 5.38% 1.09%

0.49 255.80% -24.53% -84.11%

1.09%
Ratios Formula Engro
2015
Revenue Growth Y2-Y1/Y1 16.97%
Gross Profit Margin Gross Profit /Net Sales 23.14%
Net Profit Margin Profit after Tax /Net Sales 6.35%
ROCE Profit before Interest & TAX/Capital Employed 27.21%
Quick Ratio Current Assets-Inventory/Current Liabilities 1.08
Gearing Ratio Debt/equity 26.91%
Interest Cover Ratio Earning before interest & Tax/Interest Expense 6.01
Engro Nestle
2016 2017 2015 2016 2017
-11.01% -21.86% 6.77% 9.13% 8.74%
22.64% 16.26% 33.14% 35.40% 36.62%
5.38% 1.09% 8.51% 10.54% 11.98%
20.08% 7.19% 58.02% 101.26% 122.15% 20.03%
1.23 0.83 0.34 0.25 0.24
12.28% 55.64% 90.89% 101.48% 290.13%
11.11 2.07 9.47 18.75 20.16
 Statement of Financial Position As at 31 December

(Amounts in '000 Rupees) 2014Y 2015Y

Assets
Non-Current Assets

Property, plant and equipment 15,021,519 13,860,273

Biological Assets 858,680 1,024,251
Intangibles 112,208 63,923
Long term advances and deposits 109,174 134,451
Deferred employee share option and compensation expense 112,581 147,456
Total Non-Current Assets 16,214,162 15,230,354
Current Assets
Stores, spares and loose tools 788,141 792,929
Stock-in-trade 3,697,787 3,071,379
Trade Debts 95,962 117,568
Advaces, deposits and prepayments 113,501 133,999
Other receivables 53,729 598,555
Sales tax recoverable 2,811,878 3,724,441
Tax recoverable 1,637,018 2,234,126
Deferred employee share option and compensation expense 90,430 92,986
Cash and bank balances 196,900 289,049
Total Current Assets 9,485,346 11,055,032

Total Assets 25,699,508 26,285,386

Equity and Liabilities

Equity

Share Capital 7,665,961 7,665,961

Share Premium 865,354 865,354
Employee share option compensation reserve 399,740 595,144
Hedging Reserve (27,736) (1,770)
Remeasurement of post employement benefits- acturial loss (35,715) (84,356)
Unappropriated profit 2,710,013 5,872,468
Total Equity 11,577,617 14,912,801
Non-Current Liabilites

Long term finances 5,476,993 2,195,988

Deferred taxation 1,185,717 1,816,289
Deferred Income 2,516 568
Total Non-Current Liablities 6,665,226 4,012,845
Current Liabilities

Current portion of long term finances 1,605,597 3,171,417

Current portion of deferred income 6,894 3,122
Liabilities against Assets subject to Fiance Lease -
Trade and other payables 3,215,767 3,666,927
Unclaimed Dividend -
Derivative financial instruments 41,397 2,604
Accrued interest/ mark-up on
Long term finances 194,025 98,993
Short term finances 61,092 6,920
Short term finances 2,331,893 409,757
Total Current Liabilities 7,456,665 7,359,740

Total Equity and Liabilities 25,699,508 26,285,386

Shares Outstanding 767,000 767,000

ber Horizental Analysis

2016Y 2017Y 2015Y 2016Y 2017Y

13,120,693 12,559,373.00 -7.73% -5.34% -4.28%

932,726 968,805.00 19.28% -8.94% 3.87%
44,378 71,635.00 -43.03% -30.58% 61.42%
93,984 83,631.00 23.15% -30.10% -11.02%
54,635 3,165.00 30.98% -62.95% -94.21%
14,246,416 13,686,609.00 -6.07% -6.46% -3.93%

841,394 740,423 0.61% 6.11% -12.00%

3,763,898 2,645,994 -16.94% 22.55% -29.70%
69,654 170,639 22.52% -40.75% 144.98%
144,879 157,347 18.06% 8.12% 8.61%
114,661 227,975 1014.03% -80.84% 98.83%
2,736,249 2,105,692 32.45% -26.53% -23.04%
2,039,370 2,391,766 36.48% -8.72% 17.28%
54,307 23,417 2.83% -41.60% -56.88%
702,944 68,468 46.80% 143.19% -90.26%
10,467,356 8,531,721 16.55% -5.32% -18.49%

24,713,772 22,218,330 2.28% -5.98% -10.10%

7,665,961 7,665,961 - - -
865,354 865,354 - - -
433,982 297,836 48.88% -27.08% -31.37%
0 0 -93.62% -100.00% -
(73,958) -80,643 136.19% -12.33% 9.04%
8,259,180 972,516 116.70% 40.64% -88.23%
17,150,519 9,721,024 28.81% 15.01% -43.32%

500,000 4,000,000 -59.91% -77.23% 700.00%

1,605,824 121,344 53.18% -11.59% -92.44%
0 1,287,314 -77.42% -100.00% -
2,105,824 5,408,658 -39.79% -47.52% 156.84%
 1,695,988 500,000 97.52% -46.52% -70.52%
522 0 -54.71% -83.28% -100.00%
- 151,956 - - -
3,664,234 5,125,725 14.03% -0.07% 39.89%
- 9,024 - - -
- - -93.71% - -
- - -
29,063 63,853 -48.98% -70.64% 119.71%
2,502 33,889 -88.67% -63.84% 1254.48%
65,120 1,204,201 -82.43% -84.11% 1749.20%
5,457,429 7,088,648 -1.30% -25.85% 29.89%

24,713,772 22,218,330

767,000 767,000
 Statement of Cashflow for period 31 ,December

(Amount in '000 Rupees) 2014Y 2015Y

Cashflow from operating activities

cash generated from operating activities 3,111,294.00 6,742,073.00
Finance Cost paid (1,221,436.00) (1,005,623.00)
Taxes Paid (949,664.00) (1,088,003.00)
Retirement benefits paid (137,940.00) (106,203.00)
Long term advances and deposits-net (16,042.00) (25,277.00)
Net Cash generated from operating activities 786,212.00 4,516,967.00

Cashflow from investing activities

Purchases of
_-Property planty and equipment (2,489,355.00) (967,231.00)
_-Intangible assets (39,461.00) (5,792.00)
_-Biological assets (1,320.00) (1,347.00)
Proceeds from disposal of
_-property Plant and equipment 80,124.00 133,046.00
_-biological assets 63,376.00 51,304.00
Investment in Engro Foods Netherlands B.V., (169,040.00)
Net Cash utilized in investing activities (2,555,676.00) (790,020.00)

Cashflow from financing activities

Proceeds from long term finances
Repayment of long term finances (1,081,860.00) (1,721,870.00)
Dividend paid
Repayment of liabilities against assets subject to finance lease
Net cash utilized in financing activities (1,081,860.00) (1,721,870.00)

Net increase in cash and cash equivalents (2,851,324.00) 2,005,077.00

Cash and cash equivalents at the beginning of the year 727,266.00 (2,134,993.00)
Effects of exchange rate changes on cash and cash equivalents (10,935.00) 9,208.00
Cash and cash equivalents at end of the year (2,134,993.00) (120,708.00)
er

2016Y 2017Y

6,656,268.00 5,931,300.00
(422,386.00) (458,320.00)
(1,152,072.00) (851,721.00)
(772.00) (115,940.00)
40,467.00 10,353.00
5,121,505.00 4,515,672.00

(1,348,760.00) (1,154,779.00)
(31,342.00) (25,998.00)
(5,737.00) -

121,562.00 140,453.00
76,180.00 139,670.00

(1,188,097.00) (900,654.00)

4,000,000.00
(3,175,878.00) (1,700,022.00)
(7,656,937.00)
(36,315.00)
(3,175,878.00) (5,393,274.00)

757,530.00 (1,778,256.00)

(120,708.00) 637,824.00
1,002.00 4,699.00
637,824.00 (1,135,733.00)
 Statement of Financial Position As at 31 December

(Amount in '000 Rupees)

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized capital
75,000,000 (2015: 75,000,000) ordinary shares of Rs.10 each

Issued, subscribed and paid up capital

Share premium
General reserve
Hedging reserve
Accumulated profit

NON CURRENT LIABILITIES

Long term finances
Deferred taxation
Retirement benefits

CURRENT LIABILITIES
Current portion of long term finances
Short term borrowings - secured
Short term running finance under mark-up arrangements - secured
Customer security deposits - interest free
Income tax - net
Trade and other payables
Interest and mark-up accrued

Total Equity & Liabilities

ASSETS

NON CURRENT ASSETS

Property, plant and equipment
Capital work-in-progress
Intangible assets
Goodwill
Long term loans and advances
Long term deposits and prepayments
CURRENT ASSETS
Stores and spares
Stock in trade
Trade debts
Current portion of long term loans and advances
Income tax - net
Sales tax refundable - net
Advances, deposits, prepaymens and other receivables
Cash and bank balances

Total Assets

Number of Shares Outsanding

ition As at 31 December Horizental Analysis

2014Y 2015Y 2016Y 2017Y 2015Y 2016Y 2017Y

750,000 750,000 750,000 750,000

453,496 453,496 453,496 453,496 0% 0% 0%

249,527 249,527 249,527 249,527 0% 0% 0%
280,000 280,000 280,000 280,000 0% 0% 0%
(13,999) 2,728 (10,092) 8,357 -119% -470% -183%
11,658,601 11,652,011 7,839,121 3,642,960 0% -33% -54%
12,627,625 12,637,762 8,812,052 4,634,340 0% -30% -47%

6,951,459 8,000,000 5,637,473 9,291,755 15% -30% 65%

3,263,372 2,271,523 1,943,343 2,493,067 -30% -14% 28%
1,110,999 1,215,067 1,361,555 1,660,762 9% 12% 22%
11,325,830 11,486,590 8,942,371 13,445,584 1% -22% 50%

3,082,979 1,047,750 - 116343 -66% - -

7,029,193 3,000,000 4,345,157 11,845,986 -57% 45% 173%
2,934,546 2,461,648 2,013,120 513,908 -16% -18% -74%
220,957 221,305 240,843 260,369 0% 9% 8%
- 1,576,345 1,458,740 1,150,297 - -7% -21%
14,361,913 16,752,543 24,920,599 26,231,936 17% 49% 5%
147,652 83,521 48,888 146,856 -43% -41% 200%
27,777,240 25,143,112 33,027,347 40,265,695 -9% 31% 22%

51,730,695 49,267,464 50,781,770 58,345,619 -5% 3% 15%

30,550,199 29,996,095 28,046,124 28,734,507 -2% -7% 2%

2,233,971 882,230 2,765,730 4,059,585 -61% 213% 47%
- 39,668 31,600 23,532 - -20% -26%
167,546 -100% - -
317,600 276,199 338,449 367,359 -13% 23% 9%
55,599 43,674 32,046 36,147 -21% -27% 13%
33,324,915 31,237,866 31,213,949 33,221,130 -6% 0% 6%

1,208,547 1,262,789 1,308,329 1,769,987 4% 4% 35%

9,763,987 9,474,681 11,207,230 15,358,288 -3% 18% 37%
272,321 314,836 564,460 781,116 16% 79% 38%
76,082 98,775 98,565 135,248 30% 0% 37%
231,547 -100% - -
5,868,716 5,796,612 5,374,745 4,477,768 -1% -7% -17%
758,437 828,638 661,325 1,268,098 9% -20% 92%
226,143 253,267 353,167 1,333,984 12% 39% 278%
18,405,780 18,029,598 19,567,821 25,124,489 -2% 9% 28%

51,730,695 49,267,464 50,781,770 58,345,619 -5% 3% 15%

45,349 45,349 45,349 45,349

 Statement of Profit & Loss for period ending 31 December

(Amount in '000 Rupees) 2014Y 2015Y 2016Y

Sales - net 96,457,743 102,985,916 112,392,654

Cost of goods sold (69,133,753) (68,859,344) (72,609,392)
Gross Profit 27,323,990 34,126,572 39,783,262

Distribution and selling expenses (11,085,448) (15,411,236) (17,875,408)

Administration expenses (2,125,079) (2,397,996) (2,760,186)
Operating Profit 14,113,463 16,317,340 19,147,668

Finance cost (2,155,637) (1,477,480) (959,005)

Other operating expenses (1,472,550) (2,457,480) (1,563,496)
10,485,276 12,382,380 16,625,167

Other income 523,892 137,742 394,753

Profit before taxation 11,009,168 12,520,122 17,019,920

Taxation (3,079,897) (3,759,192) (5,172,947)

Profit after taxation 7,929,271 8,760,930 11,846,973

Earnings per share- basic and diluted 174.85 193.19 261.24

 Horizental Analysis Vertical Analysis

2017Y 2015Y 2016Y 2017Y 2015Y 2016Y 2017Y

122,214,698 6.77% 9.13% 8.74% - - -

(77,458,749.00) -0.40% 5.45% 6.68% 66.86% 64.60% 63.38%
44,755,949 24.90% 16.58% 12.50% 33.14% 35.40% 36.62%

(18,406,725.00) 39.02% 15.99% 2.97% 14.96% 15.90% 15.06%

(2,741,743.00) 12.84% 15.10% -0.67% 2.33% 2.46% 2.24%
23,607,481 15.62% 17.35% 23.29% 15.84% 17.04% 19.32%

(1,095,630.00) -31.46% -35.09% 14.25% 1.43% 0.85% 0.90%

(1,837,203.00) 66.89% -36.38% 17.51% 2.39% 1.39% 1.50%
20,674,648 18.09% 34.26% 24.36% 12.02% 14.79% 16.92%

313,857 -73.71% 186.59% -20.49% -0.13% -0.35% -0.26%

20,988,505 13.72% 35.94% 23.32% 12.16% 15.14% 17.17%

(6,346,723.00) 22.06% 37.61% 22.69% 3.65% 4.60% 5.19%

14,641,782 10.49% 35.23% 23.59% 8.51% 10.54% 11.98%

322.87
(10,629,377)
-31%
 Statement of Cashflow for period 31 ,December

2014Y
Cashflow from Operating activities
cash generated from operations 21,106,707.00
decrease in long term deposits amd prepayements 15,769.00
(increase)/decrease in long term loans and advances (45,594.00)
increase in customer security deposits - interest fee 38,980.00
Sales tax refundable - net (802,381.00)
Reirement benefits paid (263,213.00)
finance cost paid (2,271,761.00)
Workers' profit paricipation fund paid (613,420.00)
Workers welfare fund paid (164,004.00)
Income taxes paid (2,336,451.00)
Net cash generated from operating activities 14,664,632.00

Cashflow from investing activities

Fixed capital expenditure (2,975,985.00)
Sale proceeds of property, plant and equipment 179,653.00
Net cash used in inveting activities (2,796,332.00)

Cashflow from financing activities

Long term finances - net (11,936,789.00)
Short term borrowings - net 4,028,883.00
Dividend paid (7,032,581.00)
Net cash used in financing activities (14,940,487.00)

Net increase in cash and cash equivalents (3,072,187.00)

Net increase in cash and cash equivalents (3,072,187.00)

cash and cash equivalents at the beginning of the year 363,784.00
Cash and cash equivalnets at the end of the year (2,708,403.00)
mber

2015Y 2016Y 2017Y

22,122,921.00 29,534,835.00 21,925,820

11,925.00 11,628.00 -4,101
18,708.00 (62,404.00) -65,593
348.00 19,538.00 19,526
72,104.00 421,867.00 896,977
(316,866.00) (387,921.00) -423,487
(1,541,611.00) (993,638.00) -997,662
(662,690.00) (895,145.00) -11,916
(214,300.00) (264,986.00) -323,560
(2,880,807.00) (5,622,752.00) -6,012,968
16,609,732.00 21,761,022.00 15,003,036.00

(2,701,201.00) (4,080,255.00) -5,457,179

348,904.00 560,991.00 250,451
(2,352,297.00) (3,519,264.00) (5,206,728.00)

(1,108,715.00) (3,410,127.00) 3,770,625

(4,029,193.00) 1,345,157.00 7,500,829
(8,619,505.00) (15,628,724.00) -18,587,733
(13,757,413.00) (17,693,694.00) (7,316,279.00)

500,022.00 548,064.00 2,480,029.00

500,022.00 548,428.00 2,480,029.00

(2,708,403.00) (2,208,381.00) -1,659,953
(2,208,381.00) (1,659,953.00) 820,076.00
 Revenue Growth 2015 2016 2107
1 Engro Foods 16.97% -11.01% -21.86%
Nestle Pakistan 6.77% 9.13% 8.74%

Revenue Growth

20.00% 16.97%
15.00%
9.13% 8.74%
10.00% 6.77%
5.00%
Percentage

0.00%
-5.00% 2015 2016 2107
-10.00%
-15.00% -11.01%
-20.00%
-25.00% -21.86%

Years
Engro Foods Li near (Engro Foods )
Nestl e Paki stan

Gross Profit Margin 2015 2016 2107

2 Engro Foods 23.14% 22.64% 16.26%
Nestle Pakistan 33.14% 35.40% 36.62%

Gross Profit Margin

40.00% 35.40% 36.62%
35.00% 33.14%
30.00%
23.14%
Percentage

25.00% 22.64%
20.00% 16.26%
15.00%
10.00%
5.00%
0.00%
2015 2016 2107

Years

Engro Foods Linear (Engro Foods )

Nestle Pakistan
 Net Profit Margin 2015 2016 2107
3 Engro Foods 6.35% 5.38% 1.09%
Nestle Pakistan 8.51% 10.54% 11.98%

Net Profit Margin

14.00%
11.98%
12.00%
10.54%
10.00%
8.51%
Percentage

8.00%
6.35%
6.00% 5.38%

4.00%
2.00% 1.09%
0.00%
2015 2016 2107
Years

Engro Foods Li nea r (Engro Foods ) Nestl e Pa ki stan

4 ROCE 2015 2016 2107

Engro Foods 27.21% 20.08% 7.19%
Nestle Pakistan 58.02% 101.26% 122.15%

ROCE
140.00%
122.15%
120.00%
101.26%
100.00%
Percentage

80.00%
58.02%
60.00%
40.00% 27.21%
20.08%
20.00% 7.19%
0.00%
2015 2016 2107
Years

Engro Foods Li near (Engro Foods ) Nestl e Paki stan

 Quick Ratio 2015 2016 2107
5 Engro Foods 1.08 1.23 0.83
Nestle Pakistan 0.34 0.25 0.24

1.40 Quick Ratio

1.23
1.20 1.08
1.00
0.83
0.80
Times

0.60

0.40 0.34
0.25 0.24
0.20

-
2016 2107

Years

Engro Foods Li near (Engro Foods ) Nestl e Paki sta n

6 Gearing Ratio 2015 2016 2107

Engro Foods 26.91% 12.28% 55.64%
Nestle Pakistan 90.89% 101.48% 290.13%

Gearing Ratio
350.00%
300.00% 290.13%

250.00%
Percentage

200.00%
150.00%
90.89% 101.48%
100.00%
55.64%
50.00% 26.91%
12.28%
0.00%
2015 2016 2107

Years

Engro Foods Li near (Engro Foods ) Nestl e Paki stan

 Interest Cover Ratio 2015 2016 2107
7 Engro Foods 6.01 11.11 2.07
Nestle Pakistan 9.47 18.75 20.16

Interest Cover Ratio

25.00
8% 20.16
20.00 18.75

15.00
11.11
Times

9.47
10.00
6.01
5.00 2.07

-
2015 2016 2107
Years

Engro Foods Nestl e Pa ki sta n

20.16

2.07

2107