TOMCL FY26 profit drops 74%

October 05, 2026 (MLN): The Organic Meat Company Limited (PSX: TOMCL) reported a 74% decline in its consolidated net profit for the fiscal year ended June 30, 2026, recording Rs112.35m compared to a restated Rs429.79m in the preceding year.

Reflecting this bottom-line compression, basic and diluted earnings per share (EPS) for the year fell to Rs0.57, down from a restated Rs2.50 in FY25.

The primary factors weighing on final earnings were a 12% top-line revenue contraction, margin compression, and higher expected credit loss allowances.

Consolidated net sales fell to Rs12.38bn, down from Rs14.01bn in FY25.

Although cost of sales contracted by 10% to Rs11.29bn, gross profit compressed by 24% to Rs1.09bn compared to Rs1.43bn in the prior year.

On the operational front, overheads expanded across administrative and credit provisioning heads.

Administrative expenses rose 4% to Rs281.36m, selling expenses edged up 1% to Rs344.59m, and allowance for expected credit losses expanded 34% to Rs211.87m.

Operational overheads total reached Rs837.82m, causing operating profit to fall 62% to Rs248.91m.

Below the operating line, TOMCL gained relief on debt-servicing outlays, with finance costs falling 54% to Rs64.15m (down from Rs140.18m in FY25).

However, this relief was offset by an 86% drop in "other income / (expenses)" (Rs12.56m down from Rs88.91m), resulting in profit before taxation of Rs194.59m (down 68% year-on-year).

The company absorbed a reduced corporate taxation charge of Rs82.24m for the year (down 53% from Rs176.15m in FY25).

Despite debt cost savings and tax relief, top-line sales compression, gross margin pressure, and higher credit loss allowances led The Organic Meat Company Limited to close the fiscal year with a net profit of Rs112.35m.

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