The Organic Meat Company Reports FY26 Financial Results: Net Profit Drops Over 70% Amid Margin Pressures

The Organic Meat Company Limited (TOMCL) announced its financial results for the fiscal year ended June 30, 2026, revealing a significant drop in profitability due to lower top-line revenue and higher credit loss allowances.

Key Financial Highlights (Consolidated)

• Net Sales: Declined 11.6% to PKR 12.38 billion, compared to PKR 14.01 billion in FY25.
• Gross Profit: fell 23.8% to PKR 1.09 billion (FY25: PKR 1.43 billion).
• Operating Profit: Dropped 62.1% to PKR 248.91 million (FY25: PKR 657.55 million).
• Profit After Tax (PAT): Plunged 73.8% to PKR 112.35 million, down from PKR 429.79 million recorded in the previous year.
• Earnings Per Share (EPS): Reduced to PKR 0.57 per share, compared to a restated PKR 2.50 per share in FY25.

Unconsolidated Financial Performance

On an unconsolidated basis, TOMCL reported a net profit of PKR 139.49 million (EPS: PKR 0.71), compared to PKR 406.09 million (EPS: PKR 2.37) in FY25. Net revenue stood at PKR 12.31 billion, down from PKR 14.01 billion last year.

Key Factors & Operations

1. Credit Loss Provisioning: Allowance for expected credit losses on a consolidated basis rose to PKR 211.87 million from PKR 158.64 million in FY25, weighing heavily on operating margins.
2. Finance Costs Reduced: Finance costs dropped significantly by 54.2% to PKR 64.15 million (FY25: PKR 140.18 million), providing minor relief to the bottom line.
3. Cash Flow & Capital Expenditure: Net cash generated from operating activities grew to PKR 311.68 million. Capital expenditures for property, plant, and equipment expansion remained strong at PKR 654.27 million.

Corporate Actions & AGM

• Payouts: The Board of Directors recommended no cash dividend, bonus shares, or right shares for the year ended June 30, 2026.
• Annual General Meeting (AGM): Scheduled for Monday, October 27, 2026, at 11:30 AM at the company’s corporate office in Korangi Industrial Area, Karachi.
• Book Closure: Share transfer books will remain closed from October 21, 2026, to October 27, 2026 (both days inclusive).
• Corporate Briefing Session: A briefing session for investors and analysts is set for Wednesday, November 11, 2026, at 11:30 AM via Zoom and in-person.