Karachi: The Organic Meat Company Limited (TOMCL) reported an impressive 32% increase in sales for the third quarter of the current financial year, reaching PKR 11,323.86 million. This growth was announced in the company's condensed interim financial statements for the period ending March 30, 2025. Despite the positive sales trajectory, the company faced challenges with margin retention due to rising raw and packaging material costs, influenced by inflationary trends in the economy.

According to information available from the Pakistan Stock Exchange (PSX), TOMCL has expanded its market reach significantly, exporting fresh chilled meat, frozen meat, and offal to regions such as the Middle East, Far East, CIS countries, China, and South Asia. Simultaneously, the company exports pet food products to North America and Eastern Europe. This expansion is supported by a comprehensive packaging strategy, including cloth wrap, vacuum-sealed food-grade plastic, and Modified Atmosphere Packaging (MAP), ensuring product integrity during transportation.

In the first nine months of the financial year, TOMCL achieved a total sales volume of 10,421 metric tons, including chilled meat, cooked beef, frozen meat, frozen offal, and pet chews across domestic and international markets. Notably, local sales surged from 4% to 46% in volumetric terms compared to the previous year. This shift in sales mix helped offset challenges in the frozen beef export market due to currency fluctuations, particularly the strengthening of the US dollar against the euro.

TOMCL is undertaking expansion projects aimed at enhancing its product offerings and capabilities, funded by resources from a successful rights shares issue and internal funds. The company is simultaneously reducing its debt obligations by renegotiating lower borrowing rates with financial institutions, leading to a 24% decline in finance costs. Additionally, the company reported a substantial increase in other income, driven by gains from biological assets.

The company's cost of sales increased by 37%, largely attributed to higher meat costs, increased depreciation expenses from capital expenditures, and rising salaries due to operational expansion at its facilities in Gadap and Korangi, Karachi. The tax expense saw a 69% rise owing to a 1% hike in tax rates and the introduction of a super tax liability.

For the nine-month period ended March 31, 2025, TOMCL reported earnings per share (EPS) of PKR 2.58, an improvement from PKR 1.91 (restated) during the same period last year. The company's strategic plans include assuming management control of Muhammad Saeed Muhammad Hussain Limited (MSMHL) at the onset of the next financial year, aligning with its commitment to expand sales and capitalize on increased production capacity.

The company continues to diversify its product portfolio to adapt to market demands and seize new opportunities in emerging geographic markets. The board remains optimistic about navigating future challenges, emphasizing innovation and risk management strategies to maintain resilience in a dynamic market environment.