First Quarter, September 2012 - Colgate Palmolive Pakistan

First Quarter Report
July - September 2012

CONTENTS
Page
COMPANY INFORMATION 2
DIRECTORS’ REVIEW 3-4
CONDENSED INTERIM BALANCE SHEET 5
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT 6
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY 7
CONDENSED INTERIM CASH FLOW STATEMENT 8
NOTES TO AND FORMING PART OF THE CONDENSED
INTERIM FINANCIAL STATEMENTS 9-15
1

BOARD OF DIRECTORS
Iqbal Ali Lakhani
Amin Mohammed Lakhani
Tasleemuddin Ahmed Batlay
Jerome Graham Webb
Mukul Deoras
A. Aziz H. Ebrahim
Zulfiqar Ali Lakhani
ADVISOR
Sultan Ali Lakhani
AUDIT COMMITTEE
Iqbal Ali Lakhani
Amin Mohammed Lakhani
Tasleemuddin Ahmed Batlay
HUMAN RESOURCE &
REMUNERATION COMMITTEE
Iqbal Ali Lakhani
Zulfiqar Ali Lakhani
A. Aziz H. Ebrahim
COMPANY SECRETARY
Mansoor Ahmed
AUDITORS
A. F. Ferguson & Co.
Chartered Accountants
INTERNAL AUDITORS
BDO Ebrahim & Co.
Chartered Accountants
REGISTERED OFFICE
Lakson Square, Building No. 2,
Sarwar Shaheed Road,
Karachi-74200
Pakistan
SHARES REGISTRAR
FAMCO Associates (Private) Limited
State Life Building No. 1-A, 1st Floor,
I.I. Chundrigar Road, Karachi.
FACTORIES
G-6, S.I.T.E., Kotri
District Jamshoro (Sindh)
217, Sundar Industrial Estate
Raiwind Road, Lahore
WEBSITE
www.colgate.com.pk
2
COMPANY INFORMATION
Chairman
Chief Executive
Chairman
Chairman

DIRECTORS’ REVIEW
The directors are pleased to present the condensed financial statements of the Company for the
quarter ended September 30, 2012.
Financial Highlights
July- September
2012
July- September
2011
Increase/
Decrease
Rupees in million Rupees in million %
Turnover 5,952 5,356 11.1%
Gross Profit 1,359 1,248 8.9%
% age to Net Sales 28.5% 29.1% -60 bps
Selling & Distribution Costs 716 591 21.2%
% age to Net Sales 15.0% 13.8% 120 bps
Administrative Expenses 44 43 2.3%
% age to Net Sales 0.9% 1.0% -10 bps
Profit from Operations 572 579 -1.2%
Profit After Tax 377 375 0.5%
Earnings per share (restated) - Rs. 8.64 8.59 0.6%
The Company achieved top-line growth of 11.1% during the period under review as compared to
the same period last year. While gross profit increased in absolute terms, gross profit as percentage
to Net Sales declined due to increases in raw & packing material prices, energy & fuel costs and
depreciation expenses of plant & machinery.
An increase in advertisement & sales promotion spend and employee related expenses led to a rise
in Selling and Distribution costs. Although challenged by high inflationary pressures, administrative
expense increased by only 2.3%. NPAT registered an increase of 0.5% and Earnings per Share
increased by 0.6% during the period under review as compared to the same period last year.
Home and Personal Care Category
Market shares of our key categories grew as we continued to invest in brand building. With constant
support and new Integrated Marketing Communication behind our new launches, we revitalized our
base business in the Home Care category. Brite Maximum Power's new campaign that connected
our consumers with the brand through all possible touch points delivered positive results by increasing
market share.
3

This quarter also hosted Colgate Dental Health Month, a global initiative to improve oral hygiene
awareness amongst Pakistani consumers from all walks of life. The program reached thousands
of people and provided free dental checkups and advice in both urban and rural areas.
In addition, Colgate 'Bright Smiles, Bright Futures' further expanded its reach in smaller towns to
engage school-going children about good oral health practices and right brushing technique.
Future Outlook
Stagnant economic growth, weakening Pak Rupee, inflation, energy crises, and deteriorating law
& order situation continue to pose challenges. By addressing needs of our consumers, and through
innovation and effective cost control, the Company is confident about its prospects to create
sustainable value for all stakeholders.
Acknowledgement
We thank our customers for their trust in our brands and our shareholders, bankers, suppliers and
all other stakeholders for their continued support. We also thank our employees for their relentless
efforts and acknowledge their continued dedication, commitment and loyalty.
On behalf of Board of Directors
Karachi : October 16, 2012
IQBAL ALI LAKHANI
Chairman
4

CONDENSED INTERIM BALANCE SHEET (Unaudited)
As at September 30, 2012
Note September 30,
2012
June 30,
2012
(Rupees in ’000)
ASSETS
NON-CURRENT ASSETS
Long term loans 13,171 9,452
Long term security deposits 10,762 10,712
Property, plant and equipment
Intangible assets
4 2,919,085
4,473
2,863,125
6,341
2,947,491 2,889,630
CURRENT ASSETS
Stores and spares 74,577 64,952
Stock in trade 2,271,813 2,852,671
Trade debts 535,308 492,437
Loans and advances 5 162,787 92,344
Trade deposits and short term prepayments 6 67,871 20,198
Other receivables 7 39,724 20,936
Profit receivable from banks 216 29
Taxation 344,572 369,239
Short term investments - available for sale 339,522 255,329
Cash and bank balances 1,118,055 837,882
4,954,445 5,006,017
TOTAL ASSETS 7,901,936 7,895,647
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorized share capital
75,000,000 ordinary shares of Rs.10 each 750,000 400,000
Issued, subscribed and paid-up share capital 8 435,954 363,295
Reserves 4,983,342 5,187,742
Surplus on revaluation of investments 3,686 3,189
5,422,982 5,554,226
LIABILITIES
NON-CURRENT LIABILITIES
Deferred taxation 453,970 458,872
Long term deposits 16,958 14,748
470,928 473,620
CURRENT LIABILITIES
Trade and other payables 9 2,008,016 1,867,778
Accrued mark-up 10 23
2,008,026 1,867,801
TOTAL LIABILITIES 2,478,954 2,341,421
CONTINGENCIES AND COMMITMENTS 10
7,901,936 7,895,647
The annexed notes 1 to 14 form an integral part of this condensed interim financial report.
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director
5

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (Unaudited)
For the Quarter ended September 30, 2012
Note
Quarter ended
September 30,
Quarter ended
September 30,
2012
2011
(Rupees in ’000)
Turnover 5,952,054 5,356,393
Sales tax (898,463) (786,265)
Trade discounts (292,766) (281,402)
Net turnover 4,760,825 4,288,726
Cost of sales (3,402,211) (3,040,770)
Gross profit 1,358,614 1,247,956
Selling and distribution costs (715,568) (591,286)
Administrative expenses (43,831) (43,199)
Other operating expenses (49,587) (47,548)
Other operating income 22,791 12,984
Profit from operations 572,419 578,907
Finance costs (3,503) (6,396)
Profit before taxation 568,916 572,511
Taxation
- Current - for the period 197,000 200,000
- Deferred (4,956) (2,059)
(192,044) (197,941)
Profit after taxation 376,872 374,570
Other comprehensive income for the period
Surplus on investments catergorised as 'available for sale' 551
Deferred tax (54)
497
Total comprehensive income for the period 377,369 374,570
Earnings per share (restated) - Rs. 11 8.64 8.59
The annexed notes 1 to 14 form an integral part of this condensed interim financial report.
6
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (Unaudited)
For the Quarter ended September 30, 2012
Balance as at July 1, 2011
Comprehensive income for the period
Net profit for the quarter ended September 30, 2011
Other comprehensive income
Transfer to general reserve
Total other comprehensive income
Total comprehensive income for the quarter ended
September 30, 2011
Transactions with owners
Final dividend for the year ended June 30, 2011
(Rs. 14.00 per share)
Bonus shares issued at the rate of three share for
every twenty shares held
Total transactions with owners
Balance as at September 30, 2011
Balance as at July 1, 2012
Comprehensive income for the period
Net profit for the quarter ended September 30, 2012
Other comprehensive income
Transfer to general reserve
Issued,
subscribed
and paid up
share capital
315,909
Capital
reserveshare
premium
Revenue reserves Surplus on
General
Unappropriated
of
revaluation
reserve
profit investments
(Rupees in ‘000)
2,870,000 1,174,310)
Total other comprehensive income
Total comprehensive income for the quarter ended
September 30, 2011
Transactions with owners
Final dividend for the year ended June 30, 2012
-
-
-
-
1,040,000
1,040,000
(1,040,000)
(663,128)
(Rs. 14.00 per share)
(508,613)
Bonus shares issued at the rate of four share for every
twenty shares held
72,659
(72,659)
Total transactions with owners
Balance as at September 30, 2012
72,659
435,954
-
13,456
-
4,590,000
(581,272)
379,886)
The annexed notes 1 to 14 form an integral part of this condensed interim financial report.
-
-
47,386
47,386
363,295
363,295
13,456
-
-
-
13,456
13,456
680,000
680,000
680,000
680,000
-
3,550,000
3,550,000
1,040,000
1,040,000
374,570)
(680,000)
(680,000)
(680,000)
(305,430)
(442,273)
(47,386)
(489,659)
379,221)
1,624,286)
376,872)
(1,040,000)
(1,040,000)
-
-
-
-
3,189
497
-
497
-
3,686
Total
4,373,675)
374,570)
-
-
374,570)
(442,273)
(442,273)
4,305,972)
5,554,226)
376,872)
497)
-
-
377,369)
(508,613)
(508,613)
5,422,982)
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director
7

CONDENSED INTERIM CASH FLOW STATEMENT (Unaudited)
For the Quarter ended September 30, 2012
Note
Quarter ended
September 30,
2012
Quarter ended
September 30,
2011
(Rupees in ‘000)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 12 671,405 397,611
Finance costs paid (3,517) (3,225)
Taxes paid (172,333) (191,510)
Long term loans (3,891) 1,765
Long term security deposits (50)
Long term deposits 2,210 49
Net cash inflow from operating activities 493,824 204,690
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed capital expenditure (147,814) (134,137)
Purchase of short term investments (425,000)
Sale proceeds on disposal of property,pant and equipment 2,984 370
Profit on bank deposits received 6,180 7,720
Sale proceeds on redemption of short term investments 350,000
Net cash outflow due to investing activities (213,650) (126,047)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid (1) (439,430)
Net cash outflow due to financing activities (1) (439,430)
Net increase / (decrease) in cash and cash equivalents 280,173 (360,787)
Cash and cash equivalents at the beginning of the period 837,882 618,843
Cash and cash equivalents at the end of the period 1,118,055 258,056
The annexed notes 1 to 14 form an integral part of this condensed interim financial report.
8
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director

NOTES TO AND FORMING PART OF THE
CONDENSED INTERIM FINANCIAL REPORT (Unaudited)
For the Quarter ended September 30, 2012
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 the
Karachi and Lahore Stock Exchanges. The registered office of the company is situated
at Lakson Square, Building No. 2, Sarwar Shaheed Road, Karachi.
The company is mainly engaged in the manufacture and sale of detergents, personal
care and other related products.
2. STATEMENT OF COMPLIANCE
2.1 This condensed interim financial report of the company for the period ended September
30, 2012 has been prepared in accordance with the requirements of the International
Accounting Standard No. 34 ‘Interim Financial Reporting’ and provisions of and
directives issued under the Companies Ordinance,1984 (the Ordinance). In case
where requirements differ ,the provisions of or directives issued under the Ordinance
have been followed.
2.2 The comparative condensed balance sheet, presented in this condensed interim
financial report, as at June 30, 2012 has been extracted from the annual audited
financial statements of the company for the year ended June 30,2012 whereas the
comparative condensed interim profit and loss account, condensed interim statement
of changes in equity and condensed interim cash flow statement for the period ended
September 30, 2011 and are unaudited.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies and the methods of computation adopted in the preparation
of this condensed interim financial report are the same those applied in the preparation
of the financial statements for the year ended June 30, 2012.
4. PROPERTY, PLANT AND EQUIPMENT
September 30,
2012
(Rupees in ‘000)
June 30,
2012
Opertating fixed assets - notes 4.1 and 4.2 2,691,287 2,711,483
Capital work-in-progress - note 4.3 227,798 151,642
2,919,085 2,863,125
9

4.1 Additions - operating fixed assets (at cost)
Quarter ended
September 30,
2012
(Rupees in ‘000)
Quarter ended
September 30,
2011
Factory building on leasehold land 1,744 4,101
Plant and machinery 49,561 31,718
Electric fittings and installation 326 701
Furniture and fixtures 794 1,981
Tools and equipment 2,038 5,027
Vehicles 13,099 6,749
Computer and accessories 2,839 5,957
Office equipment 1,258 453
71,659 56,687
4.1.1 Additions include transfers from capital work-in-progress
4.2 Disposals/Write offs - operating fixed assets (at cost)
Plant and machinery 1,187
Tools and equipment 1,713
Vehicles 2,741 399
Computer and accessories 2,344
7,985 399
4.3 Additions - Capital Work-in-Progress (at cost)
Factory building on leasehold land 4,102 8,401
Plant and machinery 61,281 57,287
Electric fittings and installation 2,881 3,788
Tools and equipment 44 2,454
Furniture & fixtures 56 5,174
Office equipment 7,792 346
76,156 77,450
4.4 Included in fixed assets are few items having cost of Rs. 22.332 million (June
30,2012: Rs. 22.332 million) held by related parties and Rs. 28.460 million (June
2012: Rs. 43.614 million) held by third parties for manufacturing certain products
of the company.These fixed assets are free of lien and the company has full rights
of repossession of these assets.
10

5. LOANS AND ADVANCES
September 30, June 30,
2012
2012
(Rupees in ‘000)
Considered good
Current portion of long term loans to employees
- due from executives 1,496 2,309
- due from other employees 7,933 6,949
9,429 9,258
Advances
- to employees - note 5.1 10,556 9,411
- to contractors and suppliers - note 5.2 60,604 73,675
- against letter of credit 82,198
162,787 92,344
5.1 Advances to employees are provided to meet business expenses and are settled
as and when the expenses are incurred.
5.2 Included in advances to contractors and suppliers is an amount of Rs. nil (June 30,
2012: Rs.1.956 million) given to related parties.
6. TRADE DEPOSITS AND SHORT TERM PREPAYMENTS
Security deposits 3,510 4,885
Prepayments 64,361 15,313
67,871 20,198
7. OTHER RECEIVABLES
Receivable from related parties - note 7.1 23,912 6,426
Value Added Tax claimable 5,206 5,421
Special excise duties claimable 10,182 8,720
Claims receivable from an insurance company 424 369
39,724 20,936
7.1 Other receivables include the following amounts due from related parties:
Clover Pakistan Limited 680 639
Tetley Clover (Private) Limited 8,274 5,778
Rollins Industries (Pvt) Limited - 9
Employee gratuity fund 14,883
Century Insurance Company Limited 75
23,912 6,426
11

8. ISSUED, SUBSCRIBED AND PAID-UP SHARE CAPITAL
September 30, June 30,
2012 2012
(Number of shares)
September 30, June 30,
2012
2012
(Rupees in ‘000)
5,882,353 5,882,353 Ordinary shares of 58,824 58,824
Rs. 10 each fully paid
in cash
37,713,037 30,447,142 Ordinary shares of 377,130 304,471
Rs. 10 each issued
as fully paid bonus
shares
43,595,390 36,329,495 435,954 363,295
9. TRADE AND OTHER PAYABLES
Trade creditors - note 9.1 462,640 554,043
Accrued liabilities - note 9.2 436,184 342,285
Bills payable 229,942 554,124
Amounts due to distributors 29,574 31,159
Sales tax payable 70,385 85,940
Royalty payable to an associated undertaking 98,342 78,500
Workers' profit participation fund 30,543 120,327
Workers' welfare fund 93,536 82,136
Retention money payable 5,640 5,447
Unclaimed dividend 511,310 2,698
Others - note 9.3 39,920 11,119
2,008,016 1,867,778
9.1 This includes Rs. 82.439 million (June 30,2012: Rs. 58.504 million) payable to
related parties.
9.2 This includes Rs. 2.721 million (June 30,2012: Rs. 1.280 million) payable to related
parties.
9.3 This includes Rs. 4.507 million (June 30,2011: Rs. 0.327 million) payable to related
parties.
10. CONTINGENCIES AND COMMITMENTS
10.1 Contingencies
10.1.1 The status of contingency which was reported in note 23.1.1 to the financial
statements for the year ended June 30,2012 has remained unchanged.
10.1.2 The claim amount of the contingency reported in note 23.1.2 to the financial
statements for the year ended June 30, 2012 has been increased to Rs. 0.927
million as some cases have been added during the period.
12

No provision has been made in this condensed interim financial report for the
same as the management is of the opinion that the matters shall be decided in
favour of the company.
10.1.3 Post dated cheques have been issued to custom authorites as a security in respect
of duties and taxes amounting to Rs 363.600 million (June 30, 2012: Rs 360.031
million) payable at the time of ex-bonding of imported goods. In the event the
goods are not cleared from custom warehouse within the prescribed time
period,cheques issued as security shall be encashable.
10.1.4 Contingent liabilities in respect of indemnities given to the financial institutions
for guarantees issued by them on behalf of the company in the normal course of
business aggregate Rs.29.547 million (June 30,2012 : Rs. 29.547 million).
10.2 Commitments
10.2.1 Commitments in respect of capital expenditure amount to Rs. 139.129 million
(June 30,2012: Rs. 222.852 million).
10.2.2 Outstanding letters of credit and acceptances amount to Rs. 523.561 million (June
30,2012: Rs. 500.560 million).
10.2.3 Outstanding duties leviable on clearing of stocks amount to Rs. 11.719 million
(June 30,2012: Rs. 12.612 million).
11. EARNINGS PER SHARE
Quarter ended Quarter ended
September 30, September 30,
2012
2011
(Rupees in ‘000)
Profit after taxation 376,872 374,570
(Number of shares)
Weighted average number of ordinary
shares outstanding during the period 43,595,390 43,595,390
(Rupees)
Earnings per share - restated 8.64 8.59
11.1 There were no dilutive potential ordinary shares outstanding as at September
30,2012 and 2011.
13

Quarter ended
September 30,
2012
(Rupees in ‘000)
Quarter ended
September 30,
2011
12. CASH GENERATED FROM OPERATIONS
Profit before taxation 568,916 572,511
Adjustment for non-cash charges and other items:
Depreciation and amortisation expense 92,030 70,435
Gain on sale of property,plant and equipment (2,178) (83)
Property,plant and equipment written off 887
Profit on saving and term deposit accounts (6,366) (7,748)
Gain on disposal of short term investment (8,640)
Finance costs 3,503 6,396
Net exchange loss 2,615 (805)
Working capital changes – note 12.1 20,638 (243,095)
12.1 Working capital changes
671,405 397,611
Decrease / (Increase) in current assets:
Stores and spares (9,625) (2,212)
Stock in trade 580,858 301,490
Trade debts (42,871) (110,897)
Loans and advances (70,271) (11,616)
Trade deposits and short term prepayments (47,673) (47,400)
Other receivables (18,787) 21,167
391,631 150,532
(Decrease) in current liabilities:
Trade and other payables (370,993) (393,627)
20,638 (243,095)
14

13. TRANSACTIONS WITH RELATED PARTIES
Relationship
with the
Company
Quarter ended
September 30,
2012
Quarter ended
September 30,
2011
(Rupees in ‘000)
Sale of goods, services and reimbursement
of expenses Associates 229,311 181,854
Purchase of goods and services received
and reimbursement of expenses Associates 896,471 770,889
Purchase of short term investments Associates 425,000
Profit on short term investments Associates 163 61
Sale proceeds on redemption of short
term investments Associates 350,000
Purchase of property,plant and equipment Associates 5,456 317
Rent, allied and other charges Associates 7,056 5,087
Royalty charges Associates 19,842 21,366
Insurance claims received Associates - 1,595
Insurance commission income Associates 1,899 3,553
Contribution to staff retirement benefits
Retirement
benefit fund 10,251 9,082
Key management personnel compensation Directors 10,428 10,047
Donation Associates 3,600 5,350
Dividend paid Associates 447,330 364,399
September 30, June 30,
2012
2012
(Rupees in ‘000)
Receivable against sale of goods Associates 74,930 50,747
Loans and advances Associates Refer note 5
Other receivable from related parties Associates Refer note 7
Royalty payable to associated undertaking Associates Refer note 9
Due from gratuity fund Retirement benefit fund Refer note 7
Payable against purchase of goods Associates Refer note 9
14. DATE OF AUTHORISATION FOR ISSUE
This condensed interim financial report was authorised for issue on October 16,
2012 by the Board of Directors of the company.
Zulfiqar Ali Lakhani
Chief Executive
Tasleemuddin Ahmed Batlay
Director
15

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