financial analysis of abbott pakistan
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Class presentation.......TRANSCRIPT
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PRESENTED BY
NAUROZ KHAN (358)ZIA ULLAH (362)
SHAZIA (359)
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INTRODUCTIONAbbott Laboratories
CLASS : BBA 8TH
SUBJECT
FSA
TEACHER
SIR.FAZLE MUQEEM
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History• Abbott Laboratories (NYSE: ABT) is a pharmaceutical health
care company.• It has 72,000 employees and operates in over 130 countries. • The company headquarters are in Abbott Park, North Chicago,
Illinois.• The company was founded by Chicago physician, Dr. Wallace
Calvin Abbott in 1888.• In 1985, the company developed the first HIV blood screening
test. • In 2008, Abbott had over $29 billion in revenue.
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Business• Abbott's core businesses focus on pharmaceuticals, medical
devices and nutritional products, which have been supplemented through several notable acquisitions. The firm currently divides itself into several divisions:
• Animal Health: Anesthesia for animals, Clinicare liquid animal diets and other veterinary products.
• Diabetes Care: Glucose monitoring device and medicine.
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Business Cont…• Diagnostics: Hematology, immunodiagnostic, oncology and
clinical chemistry (including the i-Stat).• Molecular: analysis of DNA, RNA, and proteins at the
molecular level.• Nutrition: Baby Nutrition (Similac, Isomil, and Gain), adult
health products (Ensure and ZonePerfect) and special dietary needs (Glucerna).
• Vascular: Stents, vessel closure devices, endovascular and coronary technologies.
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Theme• 2010 has been a year of celebration for Abbott Pakistan as we
achieved our vision of Rs 10 billion sales. • We managed through several significant challenges, and
exceeded our strategic and financial goals.• Our Annual Report 2010's concept focuses on Celebration of
our achievements in 2010. Achieving is one of our core values means Customer- focused outcomes and world-class execution.
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Mission
• We drive for meaningful results -demanding of ourselves and each other because our work impacts people's lives. To deliver consistently superior products and services which contribute significantly to improve the quality of life of the consumers.
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Vision
• To be a premier healthcare company in Pakistan.
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Promise
• The promise of our company is in the promise that our work holds for health and life.
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Senior Management Team
• Asif Jooma (Chief Executive Officer)• Syed Anis Ahmed (Chief Financial Officer)• Sadi Syed (Operations Director)• Dr. Sarmad Maqbool (Marketing & Strategy
Director)• Dr. Farrukh Hafeez (Quality Assurance Director)
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Key Competitors
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Abbott Products
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Our Core Values
• Pioneering: Leading-edge science and commercialization.
• Achieving: Customer-focused outcomes and world-class execution.
• Caring: Making a difference in people’s lives.• Enduring: Commitment and purpose.
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Our Strategic Priorities
• Innovating for the Future (R & D).
• Protecting Patients & Consumers (Ensuring quality).
• Safeguarding the Environment.
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Social Responsibilities
• Human Resource Development.
• Environment, Health and Safety.
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Market Share
• Abbott Pakistan achieved a market share of 6.1% as per IMS (Dec 2010, 12 Months) in the pharmaceutical and nutrition market (2009 market share: 5.8%).
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Manufacturing
• Abbott Pakistan manufactures over 150 different pharmaceutical and general health care products for the local and export markets.
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Business Process Improvement• Abbott Pakistan has launched the RSO (Rationalization,
Standardization, and Optimization) program through which packaging of various products is standardized to achieve operational efficiencies such as cost improvement, cycle time reduction, and better inventory management.
• The TPM (Total Productive Maintenance) program was launched to minimize breakdowns and reduce machine change over time to increase the productivity.
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Key Financial Data• Net sales for the thirteen months period registered an
increase of 30% over last financial year (20% increases on 12 months comparable basis).
• Profit after tax for the thirteen months period was Rs 1,177 million (Financial Year 2009: Rs 609 million). Earnings per share for the thirteen months period were Rs 12.02 (Financial Year 2009: Rs 6.22 per share).
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Contribution to National Exchequer
• Your Company has contributed Rs 1,507 million (2009: Rs 1,062 million) to the government and its agencies on account of various government levies including income tax, custom duties and sales tax etc.
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Vertical Analysis
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Horizontal AnalysisProfit and Loss account Index analysis %
2010 2009 2008
Net sales 154.36 118.62 100
Cost of goods sold 157.03 131.68 100
Gross profit 149.33 94.01 100
Selling and distribution expenses
146.29 114.47 100
Administrative expenses 153.5 115.79 100
151.5 72 100
Other operating income 103.3 134.44 100
Other operating charges 197.25 199.48 100
140.64 70.81 100
Finance cost 130.54 93.38 100
Profit before taxation 140.66 70.76 100
Net taxation 151.02 71.43 100
Profit for year 136.18 70.47 100
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Balance sheet Index Analysis %
2010 2009 2008
Total equity 109.6 90.75 100
Noncurrent liability 114.49 118.91 100
Current liabilities 127.6 118.1 100
Total equity and liabilities
114.67 98.3 100
Noncurrent assets 121.27 106.9 100
Current assets 111.62 94.33 100
Total assets 114.67 98.3 100
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Ratio AnalysisLiquidity ratios
Current ratios 2.19 2.03 2.50
Quick ratios 0.97 0.94 1.24
Leverage ratios
Debt to equity 48 53 41.51
Debt to assets 32.4 34.76 29.33
Coverage ratios
Interest coverage ratios 492.27 347.92 458.8
Profitability ratios
Return on investment 20.3 12.3 17.1
Return on equity 30.1 18.8 24.2
Net profit margin 10.7 7.21 12.13
Gross profit margin 33.5 27.47 34.6
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