Downloaded from : ABBOTT PAKISTAN2016 ANNUAL REPORTCOMMENTS ON PROFITAND LOSS ACCOUNTCURRENT ASSETSThe increase in current assets mainly owes to higher stock-in-trade and trade receivables due to business growth and higherbusiness volume.SALESNet sales for the year increased by 10.5% over previous year.Pharmaceutical sales for the year increased by 10.3% over prioryear due to volume growth. Nutritional sales for the year alsoshowed an increase of 10.2% over prior year mainly due to unitgrowth. Pediasure posted strong double digit growth. Sales for‘Others’ including General Health Care (GHC), Diagnostic andDiabetes Care, grew by 12.7% over last year. This is mainlydriven by new products launched during the year.SELLING AND DISTRIBUTION EXPENSESSelling and distribution expenses during the year increased by13.3% mainly attributable to growth in business activities andturnover. Freight and forwarding expenses increased during thecurrent year owing to volume growth coupled with provincialsales tax levied on intercity freight and transportation.OTHER INCOMEDecrease in other income during the current year by 11.7%versus last year is primarily on account of decrease in interestincome. This is attributable to lower cash reserves available dueto an increase in dividend payout coupled with lower interestrates prevalent during the current year.TAXATIONIncrease in taxation for the current year is due to higherprofitability.COMMENTS ON BALANCE SHEETNON-CURRENT ASSETSProperty, plant and equipment have witnessed an increase overprior year due to investment in production facilities andinfrastructure to support growing scale of business. Major capitalexpenditure incurred during the year was for expandingmanufacturing capacity, enhancing productivity, and improvingplant efficiency.CURRENT LIABILITIESTrade and other payables have declined over prior year mainly onaccount of reduction of staff pension liability.EQUITYEquity grew from prior year primarily due to profit for the year,partially offset by final and interim dividends during the year.COMMENTS ON CASHFLOWSCASHFLOWS FROM OPERATING ACTIVITIESThere is a decrease in cashflows from operating activities mainlydue to unfavorable working capital changes owing to increase intrade receivables and stock-in-trade against last year. This haspartially been offset by higher profitability for the current year.CASHFLOWS FROM INVESTING ACTIVITIESNet cash outflows from investing activities have declined fromprior year primarily due to decrease in capital expenditure duringthe year.