Jadeed Oil Extraction (Pvt.) Limited ('Jadeed Oil' or 'the Company') was incorporated in Nov-17 as a Private Limited Company as per the Company Act, 2017.

Mr. Jan Mohammad Javaid, along with his brothers, set up a poultry business in the 1980's. In 2008, the Group set up its first feed mill with a manufacturing capacity of 60MT/hr. In 2016, another feed mill was setup with a capacity of 120MT/hr. The Group is among the few players in the industry that imports and breeds grandparent poultry stock (Ross - 308). The Group imports Ross – 308 from Aviagen, a USA based Company. In 2017, the Group setup its edible oil mill, as its backward integration plan. Lately, the Group increased its combined feed manufacturing capacity to 240MT/hr and merged Jadeed Farms and Jadeed GP Farms with and into Jadeed Feeds.

Jadeed Oil is primarily engaged in the process of seed filtering and crushing, oil extraction, and refining by mechanical and chemical processes. The Company primarily sells semi-refined oil and meal extracted from Soybean, rape and sunflower seed. Soap and Hull extracted as a by-product in the production process is also sold by the Company. As of FY24, the Company has a seed crushing capacity of 180,000 MT/ annum and a refining capacity of 36,500 MT/annum. Capacity utilization for seed crushing/solvent extraction posted a decreasing trend and stood at ~28% (FY24: ~43.4%) due to a low volume supply of soybean oil seed. During FY25, the company's refining capacity stood at 36,500MT/annum and utilization rate of 25%. During 1QFY26, the Company has a seed crushing capacity of 180,000 MT/ annum and a refining capacity of 36,500 MT/annum. However, actual production remained nil. The Company’s extraction facility is located in Khanewal. While, the head office is located in Satellite Town, Rawalpindi.

The Company is owned by the family of the late Mr. Jan Mohammad Javaid. The majority ownership lies with Jadeed Feeds (~48%) and Mr. Jan Mohammad Javaid son's Mr. Muhammad Sohaib Javaid and Mr. Muhammad Safwan Javaid (~31% each). The remaining stake resides among Mr. Jan Mohammad Javaid’s daughter, Ms. Maimoona Javaid (~12%) and Ms. Fariha Javaid (~12%), and his wife, Mrs. Shazia Javaid (~3%).

A family-concentrated ownership structure brings stability with effective succession planning in place. With the demise of the previous sponsor, Mr. Jan Mohammad Javaid, the succession planning was evident with the ownership being passed onto the next generation. Moreover, ownership structure remains stable with a further succession plan also in place.

Jadeed Group has experienced multiple business cycles and have maintained their league since 2005. The sponsors through their vast experience have become reliable partner for the consumer industry, by making the Company to consistently comply with the standards of high quality.

The Group exhibits robust financial strength, with a consolidated asset base of PKR 51 billion and a solid equity foundation of around PKR 16 billion as of FY25. During the same year, the Group achieved a turnover of PKR 91 billion, reflecting strong business performance and market presence. Additionally, the Group reported a profit after tax (PAT) of around PKR 3 billion, underscoring its effective operational strategies and sound financial management. As of 1QFY26, total assets are recorded at PKR 47.7bln and PAT of PKR 1 bln.

The Company's BoD comprises of five Directors from the sponsoring family, including two Executive and three Non Executive Directors. However, independent oversight and diversity is required for a streamlined governance structure.

The BoD members are very well equipped with the relevant business knowledge. Mr. Muhammad Sohaib Javaid has lately become the CEO after Mr. Jan Mohammad Javaid's death and has ~ 14 years of experience in poultry and allied chain. He did graduation in BSc Hons in Poultry Sciences from University of Agriculture Faisalabad Session 2009-2013. Moreover, completed Master degree in Master of Animal Sciences from The University of Melbourne Victoria, Australia Session 2014-2016. Mr. Muhammad Safwan Javaid also have above a decade of experience and are actively managing operations. He did graduation BSc Hons in Poultry Sciences from University of Agriculture Faisalabad Session 2008-2012. He got Master degree in MSc International Financial Management from The Queen Mary University of London, UK Session 2013-2014.

The BoD is assisted by Board Audit Committee, comprising 5 members. The Committee is headed by Mr. Safwan and meets on quarterly basis. Minutes of the BoD and Committee meetings are adequately maintained.

External auditors Muniff Ziauddin and Co. Chartered Accountants have expressed an unqualified opinion on the financial statements of the Company for year ended Jun-25. The firm has been QCR rated and is in category A of SBP's panel.

The organizational structure has been optimized as per the operational needs. The Company operates through three functions: Production, Finance, Marketing and Sales. All functional managers’ report to the Company’s CEO. The CEO makes all pertinent decisions of the Group.

Jadeed Oil's management comprises experienced professionals. Mr. Muhammad Sohaib Javaid, Group’s CEO, has significant experience and expertise in the poultry and feeds industry of around 14 years, providing strong leadership and strategic direction to the organization. The Group’s Chief Financial Officer, Mr. Aamir Shehzad Mughal – FCA, possesses a wealth of experience, spanning 26 years in financial management and corporate governance. His comprehensive expertise in financial strategy, risk management, and business operations plays a crucial role in ensuring the financial stability and continued growth of the Group.

Management effectiveness is reinforced through the establishment of a dedicated Sales and Management Committee at the Group level. This Committee, which consists of five members, is led by an Executive Director and convenes as needed to oversee and address key business matters. By meeting on a timely basis, the Committee ensures that strategic decisions are made efficiently, and critical business issues are managed and monitored effectively, supporting the Group's overall operational and financial goals.

Customized software, installed by Sidat Hyder, is used at group. Standardized reports are generated as per requirement.

An internal audit function has been established at the Group level to ensure operational efficiency and the effective implementation of the Company’s policies and procedures. This function plays a key role in evaluating internal controls, identifying areas for improvement, and ensuring compliance with regulatory requirements.

Edible oil remains one of Pakistan’s largest imported commodities, with the industry marked by substantial import dependence, concentrated consumption patterns, and strong sensitivity to global price trends. Nearly 90% of the country’s edible oil is met through imports—primarily palm oil—while local production accounts for only about 10%. This heavy reliance has positioned Pakistan among the world’s top three palm oil importers. Indonesia and Malaysia remain the dominant suppliers, underpinning the country’s annual demand of roughly 5 million tonnes of ghee and cooking oil, including 3.5 million tonnes of imported palm oil. During the 5MFY24, Pakistan imported 1.319 million tonnes of palm oil valued at USD 1.26 billion, compared to 1.248 million tonnes worth USD 1.17 billion in the same period last year. The sector continues to face cost pressures, with import prices rising to around USD 1,100 per tonne in December 2024 from below USD 900 earlier in the year. Over 9MFY25, industry dynamics were shaped 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 early 2025, they eased in the second quarter amid declining inflation and a more stable exchange rate. Consumption recovered modestly, supported by population growth and gradual improvement in purchasing power. Sector revenues posted a slight YoY increase of around 1%, while gross profitability improved due to better input cost management. However, net margins stayed thin, underscoring the industry’s persistent exposure to external shocks. Looking ahead, the sector is expected to maintain stable performance, supported by a stronger PKR and improving macroeconomic fundamentals. Nonetheless, long-term resilience will depend on accelerating domestic oilseed cultivation to reduce reliance on global commodity cycles and enhance supply security.

Jadeed Oil has a stable market share of ~2% in terms of revenue, and ~2.1% in terms of production. However, theGroup is among the largest poultry players of the Pakistan.

The Company’s revenue model is heavily anchored in the production of soybean meal, refined and crude soybean oil, and soybean hull, with a significant concentration risk arising from its reliance on "Jadeed Feeds," which absorbs approximately 83% of total output. During FY25, the Company reported a substantial 53% contraction in gross revenue to PKR 10,277 million, down from PKR 21,589 million in FY24, a downturn driven by a combination of diminished sales volumes and price volatility in the soybean meal segment. This sharp decline underscores a period of operational headwinds; however, the outlook remains cautiously optimistic as the Company is well-positioned to leverage rising global demand for edible oils, which may offer a strategic hedge against domestic volume fluctuations and stabilize future margins through higher price points.

Despite a significant reduction in raw material costs and a sharp contraction in finance costs—which plummeted from PKR 758 million to PKR 51 million—the Company’s profitability experienced severe compression across all tiers during FY25. The gross profit margin halved to 2.4% (FY24: 5.1%), a decline that trickled down to the operating level, where margins eroded from 4.4% to a marginal 0.5%, signaling that the drop in top-line revenue outpaced any operational efficiencies gained. This downward trajectory ultimately culminated in a net loss, with the net profit margin sliding into negative territory at -1.3% from a slim 0.3% in the prior year.

The Group has started a commercial venture for the construction of 35 storage facility. Land has been acquiredand partial sale and partial rental business model would be followed.

The Company’s cash conversion cycle saw a notable acceleration during FY25, with net working capital days improving to 55 days from 79 days in the prior year, primarily driven by an aggressive reduction in inventory holding periods. Gross working capital days decreased to 59 days (FY24: 81 days), largely due to a sharp contraction in raw material inventory, which fell to just 3 days from 59 days—a shift that likely reflects a lean inventory strategy or a tactical response to the year's lower sales volumes. However, this liquidity gain was partially offset by a significant elongation in the trade receivable cycle, which more than doubled to 41 days from 19 days, suggesting that the Company may be extending more generous credit terms to support its remaining sales or is facing slower collections from its primary customer. While the stable trade payable position (4 days vs. 1 day) indicates a disciplined payment schedule, the reliance on rapid inventory turnover to offset slowing receivables highlights a shift in liquidity risk that necessitates close monitoring of the Company's short-term cash flow stability.

Despite a decline in absolute Free Cash Flow (FCF) to PKR 126 million from PKR 681 million in FY24, the Company’s debt-servicing capacity showed marked improvement due to a significant reduction in interest expenses. The Free Cash Flow to Operations (FCFO) over finance cost ratio rose to 2.6x from 0.9x, while the EBITDA-to-finance cost coverage ratio strengthened to 4.1x from 1.3x, indicating a more robust cushion against fixed financial obligations. This paradoxical improvement—where cash flow volume decreased but coverage ratios increased—is primarily a function of the sharp contraction in total finance costs rather than organic operational growth. While the enhanced coverage ratios suggest a lower risk of immediate default and provide the Company with greater financial flexibility, the underlying decline in absolute cash generation underscores the urgency of stabilizing core operations to ensure that this improved solvency remains sustainable in the event of future interest rate hikes.

The Company maintains a conservative capital structure, characterized by a low leverage profile as the debt-to-capital ratio (Debt / Debt + Equity) improved to 10.7% in FY25 from 20.8% in the preceding year. This deleveraging signifies a strengthened solvency position; however, the debt composition presents a distinct liquidity risk, with short-term obligations accounting for 98.9% of the total debt portfolio. While the overall debt burden is modest relative to equity, this extreme concentration in short-term facilities exposes the Company to significant refinancing risks and potential cash flow strain. Consequently, the Company's financial stability is contingent upon its ability to maintain high asset liquidity or secure more permanent, long-term financing to balance its maturity profile.