Eva Foods (Pvt.) Ltd (formerly: Shujabad Agro Industries (Pvt.) Limited) ('Eva Foods' or 'the Company') is incorporated as a private limited company in Pakistan, since Feb 2000.

Mr. Ashfaq with his friend established a long-standing presence in the edible oil industry, beginning in 1990, specializing in the procurement and supply of various crude oils, including cottonseed, sunflower, soybean, and canola, to local refiners. In 2000, Mr. Shakil Ashfaq and Mian Abdul Wahid co-founded Eva Foods (Pvt.) Ltd (formerly: Shujabad Agro Industries (Pvt.) Limited). Initially focusing on B2B extraction and supply, the company subsequently expanded into the branded edible oil market. Today, Eva Foods competes in the premium segment with the "Eva" brand and the middle-tier segment with the "Maan" brand.

Eva Foods is primarily engaged in edible oilseed crushing/solvent extraction, refining, ghee manufacturing, and packaging of refined edible oil. The Company manufactures two different products (rened edible oil and meal) in four variants (cottonseed, sunower, soybean and canola). The Company has three solvent extraction units located in Karachi. The seed crushing and oil rening capacity of the Company stood at 225,000MT and 135,000MT during FY24. Whereas actual production of seed crushing stood at 36,686MT during FY24 (FY23: 68,697MT). Also, the actual production of oil refining stood at 85,089MT during FY24 (FY23: 82,808MT).

Eva Foods is majorly ~60% owned by the family members of Mr. Shakil Ashfaq. The remaining ~40% of the shareholding resides with Ms. Bushra Asad.

Eva Foods is majorly ~60% owned by the family members of Mr. Shakil Ashfaq. The remaining ~40% of the shareholding resides with Ms. Bushra Asad.

The Sponsors through their vast experience have become reliable partner for the consumer, hotel, retail, biscuit & confectionary and industry, by making the Company to consistently comply with the standards of high quality. The Company has successfully established its brand's position.

The Sponsors through their vast experience have become reliable partner for the consumer, hotel, retail, biscuit & confectionary and industry, by making the Company to consistently comply with the standards of high quality. The Company has successfully established its brand's position.

Eva Foods' Board of Directors currently consists of a Non-Executive Director and an Executive Director. The absence of independent directors suggests a potential area for enhancement in the company's governance framework, specically regarding independent oversight.

The Board's Chairman, Mr. Shakil Ashfaq has been associated with the Company since inception and is a veteran of the industry. He was the Chairman of All Pakistan Solvent Extractors’ Association (APSEA). He has served as the President of Bin Qasim Association of Trade and Industry (BQATI) and was a member of Executive Committee of Pakistan Vanaspati Manufacturers’ Association (PVMA).

During FY25, Eva Foods' Board of Directors engaged in discussions and strategic decision-making through informal meetings, with a majority of members in attendance. However, a formal record of these meetings, including documented minutes, was not maintained. This practice represents an area where governance procedures could be strengthened to ensure transparency and accountability in board deliberations and decisions. The Board is supported by three key sub-committees that enhance its governance and operational efficiency. These include the Audit Committee, which oversees financial reporting and compliance; the Human Resource and Remuneration Committee, responsible for policies related to employee management, compensation, and development; and the Management Committee, which focuses on strategic planning and day-to-day operational matters. All divisional heads report directly to the CEO, Mr. Shakil Ashfaq, enabling effective communication, streamlined decision-making, and cohesive operational oversight across the organization.

Eva Foods external auditors, M/s REANDA Haroon Zakaria Aamir Salman Rizwan & Company Chartered Accountants, have expressed an unqualied opinion on the financial statements of the Company for the year ended FY25. The rm has been QCR rated by ICAP and are in auditors panel ‘B’ of SBP.

To perform well, Eva Foods has structured and organized its organogram as per the operational needs. The Company operates through four divisions: Production, Finance, Marketing and Sales. All Divisional Heads report to the Company’s CEO, who then makes pertinent decisions. As the Company’s CEO is responsible for the whole unit, thus highlighting the key man risk of management.

Eva Foods has an experienced & professional management. The Company’s CEO, Mr. Shakil Ashfaq laid the foundation of the Company. He has served as the President of Bin Qasim Association of Trade and Industry (BAQTI). He was a member of the Executive Committee of the Pakistan Vanaspati Manufacturers’ Association (PVMA). Mr. Shoaib Butt, the Company’s National Sales Manager, holds a diversied experience of more 20 years in both locals and multinational organizations. He has been associated with the company from 8 years. Mr. Muhammad Asim Hussain, GM Marketing, has an overall experience of 19 years. He has been associated with the company from past 10 years.

Management’s effectiveness and efficiency is ensured through the presence of management committees. At Eva Foods, an Executive Committee is formally in place. Pertinent matters of the Company are discussed in the meetings of Executive Committee and are documented as per requirement.

The Company use a customized software as per its needs. This software is regularly monitored. Moreover, to observe and evaluate the business activity a production sheet is also generated which is reviewed by the departmental heads and is submitted to the CEO. The Company prepares excel based reports. These reports are approved by CEO on weekly basis. However, monthly reports are also generated as per requirement.

To maintain and enhance operational efficiency, the Company has established an internal audit function. This function plays a key role in ensuring that the Company's established policies and procedures are effectively implemented and consistently monitored. The Head of Internal Audit reports directly to the Chief Executive Ofcer (CEO), providing a level of independence and ensuring that internal audit findings and recommendations are given appropriate attention at the highest level of management. This reporting structure strengthens the internal audit function's ability to provide objective assessments and contribute to improved governance and operational effectiveness.

Edible oil is one of the highest imported commodities in Pakistan. During the year, 2.717 million tonnes of edible oil (including oil extracted from imported oilseed) of value Rs 794 billion was imported. Local edible oil production remains at 0.471 million tonnes. In line with population growth, edible oil demand is forecast to grow about 5% and palm oil imports grew accordingly, reaching 3.6mln tons in FY24. The price of Soybean oilseed stood at 479 USD/MT in Jun-24 as compared to 591 USD/MT in the comparative year, showcasing a decrease of ~18%. On the other hand, the price of palm oil stood at 873 USD/MT in Jun-24 and 816 USD/MT in Jun-23, which is forecasted to ease further. Comparatively reductions in selling prices have impacted the revenues substantially for the refineries. Due to the rise in input costs, especially raw material cost, many companies have experienced a reduction in their prot margins and faced working capital shortages. With expectations for better cottonseed production, Total oilseed production in 2024/25 is projected to decrease marginally to 3.43 million tons, due to an expected minor decline in cottonseed production, and no growth in rapeseed and sunower seed output. The industry's future outlook is developing due to price volatility.

Eva Foods has a substantial market share in Edible oil & Ghee sector.

Eva Foods experienced substantial revenue growth in the FY25, with total revenue reaching PKR 42.4 billion, an increase from PKR 36.9 billion in the corresponding period of FY24. This represents a 15% overall revenue growth. The primary driver of this growth was a 16% increase in local sales, which constitute approximately 99% of the company's total revenue. However, export sales dropped by 50% negatively contributing towards total revenue.

Eva Foods experienced a decline in financial performance in FY25, characterized by a weakening in key profitability metrics. The company's gross profit margin decreased from 10.9% in FY24 to 9.4% in FY25. This decline was primarily driven by a significant increase in the cost of goods sold (COGS), which rose from PKR 32.8 billion in FY24 to PKR 38.4 billion in FY25. The rising cost of raw materials further exacerbated this increase in COGS. Consequently, the operating profit margin also saw a slight decline, moving from 6.6% in FY24 to 5.9% in FY25. This decrease can be attributed to an increase in administrative expenses, which grew from approximately PKR 0.235 billion in FY24 to PKR 0.24 billion in FY25. Eva Foods' net profit margin deteriorated from 1.5% in FY24 to 1.3% in FY25.

Going forward, growth in demand is anticipated in edible oil industry. The management is eyeing on expanding its crushing operations to incorporate BMR capability in order to utilize other seeds that are locally available in the market. The Company has also entered in luquid shortening with its brand " Bake Right."

Eva Foods' working capital management in FY25 shows a mixed performance, with improvements in inventory management but a slight deterioration in receivables collection. The company's net working capital days improved to 100 days in FY25 from 103 days in FY24. This improvement is largely attributable to improved inventory management. Inventory days decreased from 74 days in FY24 to 68 days in FY25. This was driven by a reduction in raw material days, which fell from 58 days to 53 days. However, trade receivable days remained almost the same (FY25: 70 days ; FY24: 69 days). Conversely, Days Payable Outstanding (DPO) declined from 40 days in FY24 to 38 days in FY25.

Eva Foods' debt coverage ratios provides valuable insight into the company's capacity to meet its financial obligations through its Free Cash Flow to Operations (FCFO), thereby reflecting its financial stability and creditworthiness. The company's Free Cash Flow to Operations (FCFO) decreased to PKR 1.4 billion in FY25, compared to PKR 2 billion in FY24. Concurrently, finance costs increased to PKR 1,497 million in FY25 from PKR 1,406 million in FY24. As a result, the debt coverage ratio weakened from 1.4x in FY24 to 1x in FY25.

The total debt of the Company increased to PKR 10.7 billion in FY25 from PKR 8.3 billion in FY24. A significant portion of this debt, 97%, is comprised of short-term debt, which rose to PKR 10.4 billion in FY25 from PKR 7.9 billion in FY24. Consequently, the company's leverage ratio experienced a slight increase, moving from 55.4% in FY24 to 60% in FY25. This modest rise in leverage is primarily attributable to the growth in short-term borrowings.