TOMCL 1QFY27 profit plunges 88%

October 29, 2026 (MLN): The Organic Meat Company Limited (PSX: TOMCL) recorded an 88% decline in its condensed consolidated net profit for the first quarter ended September 30, 2026 (1QFY27 / 3MFY27), posting Rs22.70m compared to Rs182.10m in the corresponding period of the previous fiscal year.

Reflecting the compressed bottom line, basic and diluted earnings per share (EPS) for the three-month period contracted 87% to Rs0.12, down from Rs0.93 reported in 3MFY26.

The sharp decline in earnings was primarily driven by top-line softening coupled with acute margin compression.

Net sales fell 11% to Rs3.08bn during the quarter from Rs3.45bn in 3MFY26. A smaller 6% reduction in the cost of sales to Rs2.85bn (down from Rs3.03bn) caused gross profit to plunge 46% to Rs226.16m compared to Rs415.02m in the comparative quarter.

Consequently, the company's gross profit margin contracted to 7.34% from 12.03% in 3MFY26.

On the operational side, administrative expenses remained largely flat at Rs67.63m (compared to Rs68.21m), while selling expenses surged 41% to Rs110.82m from Rs78.49m.

The pressure on overheads was partially softened by a Rs45m reversal of allowance for doubtful debt (compared to an allowance charge of Rs16m in 3MFY26), bringing total operating overheads to Rs133.45m (down 18% from Rs162.70m).

However, unable to absorb the gross profit slump, operating profit tumbled 63% to Rs92.71m against Rs252.32m in the previous corresponding period.

Below the operating line, finance costs climbed 16% to Rs17.96m compared to Rs15.45m in 3MFY26, which was partially buffered by net other income of Rs3.66m (against net other expenses of Rs9.83m in the prior-year period).

As a result, profit before taxation fell 65% to Rs78.41m from Rs227.04m. Despite the lower pre-tax earnings, taxation surged 24% to Rs55.70m (up from Rs44.94m), leading The Organic Meat Company Limited to conclude the first quarter with a net profit of Rs22.70m.

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