Mehmooda Maqbool Mills Limited (‘Mehmooda Maqbool’ or ‘the Company’) was incorporated on August 30, 1968. as a public unlisted company under the Companies Act, 1913 (now the Companies Act, 2017). It was listed on the Karachi Stock Exchange in 1968 and subsequently delisted later on.

The company’s two edible oil extraction units started operations in 2002 that have been engaged in crushing variety of edible oilseeds. The Company procures Cotton seed, Rapeseed, and Sunflower seed from local suppliers. For edible oil extraction, the Company majorly imports non-GMO Canola from Australia and non-GMO Soybean from Africa. The operations of both units depend upon the availability of the oilseeds and demand for edible oil. The Company has also installed a Ghee and Cooking oil and flour unit as well.

Solvent extraction units have a combined installed capacity of 400MT/day. Oil refining unit has an installed capacity of 72MT/day. Whereas, the flour mill has total installed capacity of 240MT/day. The Ghee & Cooking Oil Unit has a total combined production capacity of 100MT/day. The Company’s manufacturing facility and Head Office are located at 2-Industrial Estate, Multan.

Mehmooda Maqbool Mills Limited, a fully owned enterprise of the Maqbool Group, is primarily owned by the sponsoring family, who holds a significant ownership stake.

The ownership structure of the Company is notably stable, as it is entirely held by the sponsoring family. This consolidated ownership framework minimizes the potential for conflicts and ensures unified decision-making. With all shares vested within the family, the Company benefits from a cohesive vision and a strong commitment to its long-term growth and sustainability.

The Maqbool Group, founded by a respected business family of Multan, has established a significant presence in the region. Beyond its ownership of Mehmooda Maqbool Mills, the group also maintains notable interests in the textile sector, demonstrating a diversified portfolio within key industries of the local economy. This diversification underscores the family's commitment to the region's economic development. Mr. Bakhtawar, a seasoned businessman and member of the Maqbool family, has recently been elected as the Chairman of the Multan Chamber of Commerce. This appointment highlights his recognized leadership within the business community and further strengthens the family's ties to the local economy. His role as Chairman of the Chamber of Commerce positions him to advocate for business interests, promote economic growth in the region, and potentially create synergistic opportunities for the Maqbool Group's various ventures. It also suggests a deep understanding of the local business landscape and a commitment to its advancement.

Mehmooda Maqbool Mills Ltd. benefits from the financial strength of its parent company, Mehmood Textile Mills, a prominent player in the textile industry. This affiliation with Mehmood Textile Mills, allows the Company to leverage the resources and expertise of a larger and established group. This relationship likely contributes to the company's financial stability and ability to pursue growth opportunities.

Board comprises of seven members at present, two executive and five non-executive directors. All the members are from the sponsoring family.

All the BoDs are experienced individuals. The Board’s Chairman, Mian Tanvir Ahmad Sheikh, is associated with Mehmooda Maqbool Mills Ltd. and Maqbool Group since inception and has more than four decades of business experience.

The Directors are actively involved in the management of the Company to oversee and manage the Company's operations, ensuring direct involvement in strategic and operational decision-making. However, the Board does not currently have any sub-committees in place to provide specialized support or assistance in governance or management functions.

The Company’s external auditors, Shinewing Hameed Chaudhri and Co. Chartered Accountants, have expressed unqualified opinion about the financial statements of FY24. Company’s auditors have been QCR rated by ICAP and are also in category ‘B’ of SBP’s panel.

Mehmooda Maqbool Mills Ltd. operates through three functional departments: Sales & Marketing, Procurement & Production, and Finance & Administration. Each department is headed by a dedicated director, ensuring focused management and clear accountability within these key areas of the business.

The Company’s CEO Mian Bakhtawar Tanvir Sheikh, has an overall working experience of more than 13 years. He has been associated with the Company since inception. Mr. Bakhtawar, a seasoned businessman and member of the Maqbool family, has recently been elected as the Chairman of the Multan Chamber of Commerce. This appointment highlights his recognized leadership within the business community and further strengthens the family's ties to the local economy. His role as Chairman of the Chamber of Commerce positions him to advocate for business interests, promote economic growth in the region, and potentially create synergistic opportunities for the Maqbool Group's various ventures. It also suggests a deep understanding of the local business landscape and a commitment to its advancement.

The effectiveness and efficiency of Mehmooda Maqbool Mills' management team are enhanced through the timely and relevant information provided by its management information system (MIS). A well-functioning MIS plays a crucial role in supporting informed decision-making at all levels of the organization. The management structure currently lacks effectiveness due to the absence of formal management committees. This gap presents an opportunity for improvement, as the establishment of such committees could provide specialized oversight, streamline decision-making processes, and enhance overall governance. By implementing these committees, the Company could achieve more efficient management and better alignment with strategic goals.

Mehmooda Maqbool Mills Ltd. utilizes an Enterprise Resource Planning (ERP) system, a comprehensive software solution that integrates various business processes and data into a unified system. This ERP system likely manages core functions such as finance, manufacturing, sales, and human resources. While the ERP system serves as the central repository for business data, the company's internal dissemination of information takes a more tailored approach. Instead of relying solely on direct access to the ERP system for all employees, the company documents information and generates reports "as per requirement." This suggests a controlled and selective distribution of information.

Mehmooda Maqbool Mills Ltd. conducts regular internal reviews to assess and oversee the effectiveness of its operational controls. These reviews are a critical component of internal governance and risk management, designed to ensure that the company's processes and procedures are functioning as intended.

Edible oil remains one of Pakistan’s largest imported commodities, with the industry marked by substantial importdependence, concentrated consumption patterns, and strong sensitivity to global price trends. Nearly 90% of thecountry’s edible oil is met through imports—primarily palm oil—while local production accounts for only about10%. This heavy reliance has positioned Pakistan among the world’s top three palm oil importers. Indonesia andMalaysia remain the dominant suppliers, underpinning the country’s annual demand of roughly 5 million tonnes ofghee and cooking oil, including 3.5 million tonnes of imported palm oil. During the 5MFY24, Pakistan imported1.319 million tonnes of palm oil valued at USD 1.26 billion, compared to 1.248 million tonnes worth USD 1.17 billionin the same period last year. The sector continues to face cost pressures, with import prices rising to around USD1,100 per tonne in December 2024 from below USD 900 earlier in the year. Over 9MFY25, industry dynamics wereshaped by global trends, as international palm and soybean oil prices averaged USD 1,007/MT and USD 1,097/MT,respectively, prompting corresponding movements in domestic prices. While prices remained elevated in early2025, they eased in the second quarter amid declining inflation and a more stable exchange rate. Consumptionrecovered modestly, supported by population growth and gradual improvement in purchasing power. Sectorrevenues posted a slight YoY increase of around 1%, while gross profitability improved due to better input costmanagement. However, net margins stayed thin, underscoring the industry’s persistent exposure to externalshocks. Looking ahead, the sector is expected to maintain stable performance, supported by a stronger PKR andimproving macroeconomic fundamentals. Nonetheless, long-term resilience will depend on accelerating domesticoilseed cultivation to reduce reliance on global commodity cycles and enhance supply security.

Considering the revenue generated within the edible oil industry in Pakistan, the Company holds a substantial market share. Similarly, the Company has also achieved a significant market share in the flour market.

The Company primarily caters to the domestic market, with revenues derived from three key product segments: ghee and cooking oil (37%), flour (34%), and meal (29%). During FY25, the Company reported topline revenue of PKR 14,774 million, reflecting a year-on-year growth of 9.1% compared to PKR 13,538 million in FY24. This growth was largely driven by a strong increase in flour sales, which rose to PKR 4,965 million in FY25 from PKR 3,698 million in FY24, underscoring the Company’s successful expansion and deeper market penetration in the flour segment.

During FY25, the Company’s gross profit margin declined due to rising raw material costs, despite an increase in revenues. Consequently, the gross margin decreased to 8.7% from 10.6% in FY24. This margin compression translated into lower operating profitability, with the operating profit margin declining to 6.6% in FY25 from 8.8% in the previous year, primarily reflecting higher operating expenses. Notwithstanding this, the net profit margin improved marginally to 1.0% from 0.8% in FY24, largely supported by a reduction in finance costs, which decreased to PKR 501 million in FY25 from PKR 615 million in FY24.

Over the period, the company has diversified its manufacturing, producing meal as a by-product of edible oil extraction and flour, which has a stable national demand.

Net working capital remained broadly stable at 90 days, primarily reflecting a marginal increase in inventory holding days to 36 days in FY26 from 32 days in FY25. Trade receivable days also lengthened to 71 days from 68 days in FY24. However, this was partly offset by an extension in trade payable days to 18 days from 10 days, resulting in an overall improvement in net working capital days. The Company’s liquidity position, as reflected by the current ratio, stood at 2.8x in FY26 compared to 3.5x in FY24.

Funds from operations (FCFO) declined significantly to PKR 386 million in FY25 from PKR 887 million in FY24. As a result, the FCFO-to-finance cost coverage weakened to 0.8x in FY25 from 1.5x in the preceding year. However, supported by a reduction in finance costs, EBITDA-to-finance cost coverage improved to 2.0x in FY25 compared to 1.7x in FY24. Consequently, the debt payback period deteriorated, extending to -1.2x from 0.6x in FY24.

The Company continues to maintain a high leverage profile, with short-term borrowings constituting the majority of total debt at 96.2% in FY25, compared to 93.9% in FY24.