The ordinary General Assembly Meeting of HoldiPharma Company was chaired by Eng. Adel Al Mouzi, Supervisor of the Ministry of Investment and chairman of the General Assembly.
The meeting was attended by representatives of the Central Auditing Organization, members of the general assembly, board members of the holding company and representatives of the Ministry of Investment. The holding company's estimated budget for FY 2011/2012 was discussed.
The holding company's board report on the 2011/2012 budget was presented by its chairman, Dr. Magdy Hasan. The report reviewed the holding company's future plans and new investments.
Dr. Hasan explained that the holding company's 2011/2012 budget targets to achieve a net profit of EGP 175 million compared to an actual profit of EGP 202 million during FY 2009/2010. He added that the company is always supportive to its affiliates and take appropriate measure to improve their economic positions and correct their finance structures. This support, he noted, consists of the upgrade and improvement of plants, branches and warehouses including the establishment of new plants in Sixth of October for example. Coordination is underway among affiliates to improve the utilization of available energy. The chairman urged companies to create new products, develop exports, improve workers' positions and pay attention to training and capacity building programs.
Affiliates encounter challenges of obsolete machines and production lines and the high cost of inputs and raw materials together with an inevitable increase in wages although prices of final products remain unchanged and sometimes too humble. This is true for a number of products, sold for less than their cost prices. Recent events, which affected progress and stability of some companies and thus business results, were among challenges.
Eng. Adel Al Mouzi highlighted the importance of maintaining holding companies' support to affiliates, citing the case of HoldiPharma. He urged injection of investments for purposes of restructuring and replacement, given the deteriorated production lines in industrial affiliates.
Al Mouzi underscored the role of the public sector's drug manufacturing and trading companies, especially that five out of ten affiliates have their shares traded on the stock exchange. He urged integration among companies due to the multiplicity of industrial and commercial activities in order to face the severe competition within the private and investment sectors.
Affiliates had the following financial indicators in the budget:
- Affiliates' targeted current activity revenues amounted to EGP 8,283 million during FY 2011/2012.
- Targeted net profits before tax amounted to EGP 594 million during FY 2011/2012.
- The budget targets to implement investments of EGP 634 million in affiliates for purposes of upgrade and restructuring.
- Affiliates' targeted exports amount to EGP 224.7 million during FY 2011/2012 compared to EGP 175 million during FY 2009/2010.
Then the meeting heard the Central Auditing Organization's report on the estimated budget and the holding company's response to it.
The general assembly endorsed the holding company's estimated budget for FY 2011/2012.