Waheed Hafeez (Pvt.) Limited (‘the Company’) was incorporated in September 1993 as a Private Limited Company.

Mr. Sheikh Abdul Waheed, founder of Waheed Group of Industries (‘the Group’) started his business journey in the tea industry in the 1970s. Later, in 1988 he entered the edible oil industry The Group's significant combined production capacity, exceeds 850 million tons per day for vegetable ghee and edible oil. In 1993, the Group started its first venture Waheed Hafeez Ghee Industries (Pvt.) Limited in Hattar, KPK which currently has the capacity to produce 350. The company generates an annual turnover of over three hundred and fifty million US Dollars ($350 million), contributing significantly to the country’s economy. MT per day of vegetable oil/ghee. Waheed Group of Companies is also one of the largest entities in the field of manufacturing and import of edible oil, bulk import and distribution of Crude Palm Oil, RBD Palm Oil, RBD Palm Olein, import of various food industry chemicals, Electrolytic Tinplate Sheets, import and sale of Compressed Natural Gas (CNG) Equipment and Stations, running of (CNG) Filling Stations, and Real Estate and construction of Commercial Buildings. The group also deals in shortening. Additionally, Waheed Group of Companies maintains a presence in the hospitality industry with its hotel venture, ‘Laraib Inn’. Demonstrating a commitment to agricultural diversification and local development, the group has recently invested in olive farming, acquiring over 1000 acres of land for this purpose.

The Company is primarily engaged in the process of refining crude palm oil; producing and selling cooking oil/ghee. Capacity utilization is dependent on the local demand and availability of crude palm oil which is primarily imported from Malaysia and USA.  It has a production capacity of 350 metric tons per day, produced under 44 different brands that comply with the different needs of various clients.

The Company’s majority ownership resides with family sponsors with Mr. Abdul Waheed (90%) and his wife Ms. Rubina Kausar (10%), reflecting a family-owned governance model.

The Company is completely owned by the sponsoring family through associated company and individual shareholding. The company is one of the largest suppliers of cooking oil and banaspati in northern Pakistan, reflecting its significant market presence. Waheed Hafeez Ghee Industries has established a stable and growing presence in Pakistan's edible oil industry through strategic expansions, strong financial performance, and a commitment to quality. The Company's affiliation with Waheed Group underscores its operational stability.

Mr. Abdul Waheed has been associated with the edible oil industry from almost 40 years. He started his career in the tea industry and later entered the edible oil industry by establishing his own cooking oil/ghee production units and companies. Apart from edible oil, the sponsors also have presence in the transport, hotel, and energy sectors as well. The Group has also formed consultancy firm in Canada. Mr. Waheed has also served as the chairman Pakistan Banaspati Manufacturer’s Associated for 3 years. Furthermore, he is currently the member of Rawalpindi Chamber of Commerce, Federation of Pakistan Chamber of Commerce & Industry (FPCCI), and SAARC Chamber of Commerce.

The Group is predominantly composed of Companies engaged in various aspects of the edible oil value chain, reflecting a focused and vertically integrated business model. Beyond the inherent financial strength of the Group, the sponsoring family holds considerable personal net worth. This financial capacity positions them to extend timely support to the Company, should adverse economic or industry-specific challenges arise, thereby enhancing the Company's financial resilience and credit profile.

The Company’s BoD comprises two Executive Directors and both directors are from the sponsoring family. Lack of independent oversight and diversity indicates a room for improvement in the Company’s governance structure.

The BoD is a key source of oversight and guidance for the management of all Group Companies. The Board’s Chairman, Mr. Abdul Waheed has been associated with the edible oil industry from almost 40 years.  He has also served as the chairman Pakistan Banaspati Manufacturer’s Associated for 4 years. Furthermore, he is currently the member of Rawalpindi Chamber of Commerce, Federation of Pakistan Chamber of Commerce & Industry (FPCCI), Haripur Chamber of Commerce & Industry (HCCI) and SAARC Chamber of Commerce. Ms. Rubina Kausar, serves as the Non-Executive Director on the Board and has an overall experience of 17 years.

The Board's current practice of informal discussions on pertinent matters, alongside the absence of formal sub committees, indicates a less formalized structure for corporate governance. While this approach may foster open dialogue and operational flexibility, it could potentially limit the depth of analysis and specialized oversight typically provided by dedicated sub-committees for critical areas such as audit, risk management, and remuneration. The establishment of formal Board sub-committees with clearly defined responsibilities and reporting lines could enhance the rigor and focus of governance processes, thereby strengthening overall board effectiveness.

The external auditors of the Company, Nasir Javaid Maqsood Imran Chartered Accountants, have expressed an unqualified opinion on the financial statements of the Company for the year ended Jun-25. The firm has been QCR rated by ICAP and is placed in ‘category B’ of SBP’s panel of auditors.

The organizational structure has been optimized as per the operational needs. The Company operates through three functions: Production, Finance, Distribution and Sales. All functional managers’ report to the Company’s CEO. The CEO makes all pertinent decisions of the Group. As the Company’s CEO is responsible for the whole unit, thus highlighting the key man risk of management.

The overall control of the Company vests with Board’s Chairman, who is also the Group’s Chief Executive Officer. Hence, there is no segregation of responsibilities. Mr. Abdul Waheed has been associated with the edible oil industry from almost 40 years. He started his career in the tea industry and later entered the edible oil industry by establishing his own cooking oil/ghee production units and companies. Apart from edible oil, the sponsors also have presence in the transport, hotel, and energy sectors as well. The Group has also formed consultancy firm in Canada. Mr. Waheed has also served as the chairman Pakistan Banaspati Manufacturer’s Associated for 4 years. Furthermore, he is currently the member of Rawalpindi Chamber of Commerce, Federation of Pakistan Chamber of Commerce & Industry (FPCCI), and SAARC Chamber of Commerce.

The absence of formal management committees within the Company represents an area for potential development in its organizational structure and governance framework. Management committees, when effectively implemented, can enhance decision-making processes, improve cross-functional collaboration, and provide dedicated oversight on critical aspects of the business, such as operations, finance, and strategy.

The implementation of SAP Business One as the Company's enterprise resource planning (ERP) system is a significant enabler for generating standardized reports. This suggests a commitment to leveraging technology for efficient data management and reporting processes. The use of a recognized ERP system like SAP Business One typically facilitates better integration of various business functions, leading to more accurate, consistent, and timely information for decision-making. The ability to generate standard reports enhances transparency, supports regulatory compliance, and provides management with valuable insights into the Company's performance across different operational areas. This foundation of standardized reporting is crucial for effective monitoring, analysis, and strategic plannings.

The Company benefits from an in-house internal audit department, which is a positive aspect of its governance structure. This dedicated function, headed by Ms. Abeera Hamid, suggests a commitment to internal controls, risk management, and operational efficiency. An internal audit department plays a crucial role in independently assessing and improving the effectiveness of the organization's processes, ensuring compliance with policies and regulations, and safeguarding assets. The presence of such a department can contribute to stronger financial reporting and overall corporate governance.

The edible oil industry in Pakistan represents a significant segment of the country’s food and consumer goods sector, characterized by stable demand fundamentals and growing consumption levels. During FY25, total edible oil consumption increased by approximately 17.3% YoY to ~4.9Mn MT, supported by population growth and higher per capita consumption of ~20.3 KG/person. The sector, however, remains heavily reliant on imports, with nearly ~72.3% of domestic consumption fulfilled through imported edible oils, particularly palm oil, exposing industry players to international price volatility, exchange rate fluctuations, and global supply chain disruptions. The industry has demonstrated improving operational dynamics, with domestic edible oil production increasing by ~29.1% YoY in FY25, primarily driven by higher soybean oil processing following the government’s approval of GMO soybean imports. Going forward, improving macroeconomic indicators, relative PKR stability, and sustained consumer demand are likely to provide a supportive operating environment for the sector.

The Company being a small player in the edible oil industry of the country, Waheed Hafeez Ghee Industries (Pvt) Ltd holds a strong and competitive position within Pakistan’s edible oil and banaspati industry, particularly in the northern region.

During FY25, the Company's topline contracted by ~9.7%, reporting at PKR 6,122mln (FY24: PKR 6,778mln), reversing the strong growth trajectory observed in prior years. The decline was primarily driven by a complete halt in export sales (FY25: nil; FY24: PKR 136mln), alongside softer local volumes amid easing international palm oil prices that translated into lower per-unit selling prices. Gross local revenue (before sales tax) stood at PKR 7,225mln in FY25 (FY24: PKR 7,837mln). Going forward, the revenue trajectory will hinge on the recovery of export channels, stabilization in palm oil prices, and the Company's ability to defend volumes in a competitive operating landscape. The company produces over 44 different brands of edible oils and fats, catering to various market segments. Some of their major brands include: Fauji Supreme, Perlli, Phool, Zeenat.

During FY25, the Company's profitability profile improved markedly despite a contraction in topline. A sharper decline in raw material cost (down to PKR 5,301mln) drove a meaningful expansion in gross margin to 7.97% in FY25 (FY24: 5.98%), benefitting from favorable international palm olein prices and a relatively stable PKR. Operating profit margin similarly strengthened to 6.32% (FY24: 4.59%), supported by disciplined cost control. Net profit margin rose to 3.73% in FY25 (FY24: 2.08%), reflecting both improved operating performance and a lower effective tax rate of 36.6% (FY24: 51.1%), translating into net income of PKR 228mln (FY24: PKR 141mln). Going forward, sustaining these margin gains will depend on managing imported raw material exposure and currency volatility.

Since its inception, the Company has exhibited a consistent growth trajectory. Building upon this foundation, the Company now possesses a heightened drive towards future expansion, underpinned by a clearly defined strategic direction within the industry-specific ecosystem.

The Company's working capital cycle elongated further during FY25, signaling continued strain on liquidity management. Inventory days increased to 13 (FY24: 11), and trade receivable days extended to 22 (FY24: 18), pushing gross working capital days up to 35 (FY24: 30). Compounding this, payable days contracted to 5 (FY24: 8), as the Company continued to settle suppliers more quickly. Consequently, net working capital days widened to 30 (FY24: 22), with a larger share of operating funds locked in receivables and stores/spares. The short-term trade leverage indicator turned negative at -1.2% in FY25 (FY24: 34.8%), as short-term borrowings overshot the net trade asset base, indicating the Company is now in a marginal excess-borrowing position relative to its trade cycle. The current ratio nonetheless improved to 3.22x (FY24: 2.87x), supported by a build-up in cash balances (PKR 564mln vs PKR 401mln) and other current assets. Tighter receivables management and a recalibration of the supplier-payment cycle are warranted to ease the pressure on short-term funding.

Coverage indicators strengthened further during FY25, underpinned by robust cash generation. Free Cash Flows from Operations (FCFO) grew by ~47.5% to PKR 285mln (FY24: PKR 193mln), reflecting higher EBITDA of PKR 419mln (FY24: PKR 341mln) and better operating efficiency. The Company continues to report negligible reported finance cost on the income statement (FY25: PKR 1.3mln; FY24: PKR 1.7mln), keeping the interest coverage ratio effectively infinite. Debt payback (Total Borrowings/FCFO net of finance cost) remains at zero, given the absence of long-term debt. While these metrics provide significant headroom, it is noted that markup payable on the balance sheet rose to PKR 7.2mln (FY24: PKR 5.0mln), correlating with the higher short-term borrowing utilization. The favorable coverage profile, combined with rising cash balances, continues to provide meaningful financial flexibility.

The Company's capital structure remains conservative but has tilted further toward leverage during FY25. Total borrowings increased by 58% to PKR 725mln (FY24: PKR 458mln), entirely concentrated in short-term facilities — long-term debt remains nil. The equity base also expanded to PKR 2,152mln (FY24: PKR 1,926mln) on the back of profit retention. As a result, the leverage ratio (Total Borrowings/(Total Borrowings + Equity)) increased to 25.2% in FY25 (FY24: 19.2%), reflecting greater reliance on bank lines to fund the elongated working capital cycle. The continued absence of long-term funding, despite growing capital needs, exposes the Company to refinancing and rate-reset risk on its short-term lines. A more diversified debt mix incorporating long-term financing would lend greater stability to the capital structure as the business scales.