Karachi: The Organic Meat Company Limited (TOMCL) released its annual report for the fiscal year ending June 30, 2026, revealing a significant decline in net sales and profit amid a challenging business environment. The report was presented by the Board of Directors on October 7, 2026.
The company, which specializes in exporting fresh chilled meat, frozen meat, and frozen offals to regions including the Middle East, Far East, CIS, and South Asia, faced increased operational pressures in FY2026. Despite these challenges, TOMCL maintained its presence in over a dozen countries, leveraging its packaging capabilities and strategically located processing facilities in Karachi.
During the year, TOMCL experienced a decrease in net sales by 11.6%, amounting to PKR 12,381.2 million, down from PKR 14,006.1 million in FY2025. Export sales diminished to PKR 6,754.5 million from PKR 8,132.5 million, while local sales showcased relative stability at PKR 5,626.7 million. This performance reflects the adverse conditions in its key export markets.
According to information available from the Pakistan Stock Exchange (PSX), TOMCL faced a decrease in cost of sales by 10.2%, which led to a gross profit reduction of approximately 24% to PKR 1,086.7 million, and a decline in gross margin to approximately 8.8% from 10.2% last year. The company managed to increase its net cash generated from operating activities to PKR 311.69 million, up from PKR 168.8 million in the previous fiscal year.
Administrative expenses saw a slight increase to PKR 281.4 million due to inflationary pressures despite strong cost management. The company also recognized an expected credit loss charge of PKR 211.9 million, building on PKR 158.6 million recorded in the prior year. Finance costs decreased to PKR 64.2 million, a decline attributed to last year's successful rights issue, which raised PKR 810 million.
The funds from the rights issue were allocated towards the establishment of a Beef Tripe Cooking & Red Offals Processing Unit, meeting additional working capital needs, and repaying high-cost bank debt. After accounting for a 43% tax rate, the profit after tax totaled PKR 112.4 million, resulting in an earnings per share of PKR 0.57, a significant drop from PKR 2.50 (restated) in FY2025.
The report highlights the disproportionate impact of high minimum tax on the company's financial performance, particularly in a year marked by tight margins. Despite these setbacks, TOMCL's robust management, established infrastructure, and strategic focus on cost discipline and operational efficiency remain pivotal in navigating the current economic landscape.