The Organic Meat Company Ltd (TOMCL) posted a sharp increase in profitability in FY26 despite lower export volumes and disruptions from the Middle East conflict, according to an analyst briefing note released by AKD Research.
The brokerage house said TOMCL reported profit after tax of Rs1.12 billion for FY26, up 73.9 per cent from Rs643 million a year earlier, while earnings per share rose to Rs6.06 from Rs3.5. Revenue increased 12pc to Rs12.4bn, supported by higher local sales and improved export pricing.
According to AKD Research, export sales fell to Rs6.8bn from Rs8.1bn in the previous year, while domestic sales surged 56pc to Rs5.6bn, increasing the local market’s contribution to overall revenue. Export volumes declined 12pc year-on-year to 5,990 tonnes from 6,780 tonnes.
Management attributed the decline largely to the conflict in the Middle East, particularly in the fourth quarter of FY26, when slaughtering volumes fell 42pc year-on-year. The disruption reduced exports by an estimated 500 tonnes of meat and 220 tonnes of offal, especially affecting fresh chilled meat shipments to Dubai.
The company exported 100pc of its production, either directly or indirectly, with major destinations including the UAE, China, Saudi Arabia, Oman, Vietnam and Tajikistan. Beef accounted for 88pc of exports, followed by offal at 10pc and mutton at 2pc.
TOMCL management noted that margins remained under pressure due to intense competition from local and international suppliers, higher freight and insurance costs, and weaker frozen meat prices amid competitive pricing from Brazil, India and Australia.
The company is also pursuing cost-saving initiatives at its Gadap processing facility, including a 2MW solar power project coupled with a 5MW battery energy storage system. Management expects reliance on grid and diesel power to decline significantly once the project becomes operational in the second half of FY27.
Looking ahead, management said the FY27 outlook remains closely linked to developments in the Middle East. A de-escalation of regional tensions could help restore export volumes to previous levels, while prolonged uncertainty may continue to weigh on sales performance.
The company is also focused on diversifying export markets, improving collections, restoring margins and strengthening operational efficiency, according to the research house.
