TOMCL bottom line beefs up in H1FY26

February 17, 2026 (MLN): The Organic Meat Company Limited (TOMCL), one of Pakistan’s leading meat exporters, showed a resilient 8.15% increase in bottom-line profit despite a challenging environment for top-line revenue during its financial results for the half-year ended December 31, 2025.

During the period, TOMCL’s net sales reached Rs7.30 billion, a decline of approximately 10% compared to the Rs8.10 billion recorded in the same period last year.

This dip in revenue was largely mirrored by a decrease in the cost of sales, which fell by 9.58%, suggesting a shift in product mix or volume adjustments in the international markets.

Despite the softer revenue, the company’s net profit grew to Rs370.9 million (EPS: Rs1.89), up from Rs343 million (EPS: Rs1.75) in the previous year.

The standout feature of this financial period was a massive 63.5% reduction in finance costs, which plummeted from Rs95.2 million to just Rs34.7 million.

This indicates a successful deleveraging strategy by the management, significantly reducing the company’s debt burden and interest-rate exposure.

The company significantly improved its risk profile, with the "Allowance against expected credit loss" dropping by over 60% YoY, reflecting better collection cycles and credit management with international buyers.

While gross profit margins tightened slightly due to the revenue dip, selling expenses were effectively curtailed by nearly 18%, helping to sustain operating viability.

The company recorded a tax expense of Rs23.1 million this period, compared to a tax credit of Rs8 million in the previous year, which represents a return to a standard tax payout.

Despite a cooling in gross sales, TOMCL’s ability to grow its net profit through cost-containment and debt reduction positions the company strongly for the remainder of the fiscal year. 

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