Founded in 1988, Ismail Industries Limited ('ISIL' or 'the Company') was incorporated as a public listed Company in 1989.

Mr. Muhammad Ismail, in partnership with his brothers, founded Ismail Industries, which has since become the largest manufacturer and exporter of confectionery products in Pakistan. The Company's flagship brand, Candyland, operates within the confectionery sector. Over the years, Ismail Industries has diversified its portfolio through horizontal expansion, introducing brands such as Bisconni (specializing in biscuits and cookies) and SnackCity (offering chips, peanuts, and other snacks). The Company has made backward integration by ensuring top-quality all-purpose flour (maida) for Bisconni and established Ghiza Flour. Additionally, the Company has pursued vertical integration with the establishment of Astro Plastics, which specializes in the production of BOPET, CPP and BOPP films.

Ismail Industries Limited (ISIL), headquartered in Karachi, operates ten production facilities located across key industrial zones, including Hub, Port Qasim. The Company’s operations are divided into two main segments: Food and Plastics. For FY25, ISIL reported a production capacity of 316,416 MT (FY24: 298,356 MT) in the Food division, reflecting an enhancement of 18,060 MT, while the Plastics division maintained a capacity of 63,000 MT (FY23: 63,000 MT). Actual production stood at 201,769 MT (FY24: 192,644 MT) for Food and 36,435 MT (FY24: 35,580 MT) for Plastics. This translates into capacity utilization rates of approximately 63% (FY24: 65%) for Food and 57% (FY24: 56%) for Plastics, indicating potential for further production optimization in both segments. ISIL’s strategic initiative to establish its ‘Bisconni’ wholly owned subsidiary in Abu Dhabi, UAE, represents a commendable move to tap into the lucrative MENA confectionery market.

The majority ownership of the Company is held by the Ismail family, with the shares distributed among three brothers and their families. The ownership breakdown is as follows: Mr. Maqsood Ismail owns ~0.8%, his wife, Ms. Almas Maqsood, holds ~29.8%, and their son, Mr. Hamid Maqsood Ismail, owns ~2.2%. Mr. Muhammad M. Ismail holds ~15.7%, his wife, Ms. Farzana Muhammad, owns ~2.0%, and their son, Mr. Ahmed Muhammad, has ~15.2% stake. Mr. Miftah Ismail owns ~31.0%, with his wife, Ms. Reema Ismail Ahmed, holding ~1.9%. The remaining minority ownership is held by associated entities, including Uniron Industries Private Limited ~0.6% and other stakeholders ~0.4% and free float.

The ownership structure of Ismail Industries Limited (ISIL) reflects a high degree of stability, with the majority stake held by the Ismail family. Under the long-standing leadership of Mr. Muhammad Ismail, who brings extensive industry experience, the Company benefits from a seasoned and consistent management approach.

The sponsors of Ismail Industries Limited (ISIL) bring over four decades of operational experience, contributing deep-rooted industry expertise and insight to the Company's strategic direction. The sponsors including the followings: Mr. Muhammad M. Ismail did his B.S. in Industrial Engineering from the University of Florida, USA in 1974. He joined the family concern Union Biscuits and served as a Director till 1989 when he established Ismail Industries Limited. As Chairman of IIL, he oversees all aspects of management including production, sales and distribution, marketing, and expansion and acquisitions. Mr. Maqsood Ismail, awarded Tamgha-e-Imtiaz, holds degree of B.S. in Economics from the University of Delaware, USA. Currently, he is a Director of Ismail Industries Limited. Mr. Maqsood Ismail was the Chairman of the Export Processing Zones Authority, Pakistan. He has also been Vice President of the Federation of the Chambers of Commerce and Industry of Pakistan and a Chairman of Yarn Merchants Association of Pakistan and President of Lasbela Chamber of Commerce. Mr. Ahmed Muhammad Ismail completed his graduation from George Washington University (USA), majoring in the field of Economics. As part of the new vision of the Company, Ahmed Ismail has been assigned the role of Chief of Candyland and Ismail Nutrition Business divisions of the Company, where he has been active in modernizing the business while bringing in a more object-oriented approach to managing the Company. As part of the new vision of the Company, Hamid Ismail has been assigned the role of Chief of Bisconni and SnackCity Business Division, where his achievements include rapid growth in the topline of the business while improving the overall profitability of both segments of the Company. He has a deep interest in improving the technological capabilities of the Company and implementing the accounting software. Dr. Miftah Ismail holds a PhD in Public Finance and Political Economy from the Wharton School of Business, University of Pennsylvania. A professional economist, he worked at the IMF before coming back to Pakistan. He has a proven track record of leading some of the exciting names in the Country including Chairman- Suit Northern Gas Company Pakistan, Director Pakistan International Airlines Corporation (2013 – present), Vice Chairman Punjab Board of Investment and Trade – 2012. He is the President of Karachi American School, and is a member of the Advisory Committee of the Institute of Business Administration and has also been a visiting faculty member at the I.B.A. Under this dynamic leadership, Ismail Industries Limited has achieved remarkable success in the confectionery market while also demonstrating excellence in expanding into new business ventures.

In addition to being a major player in the confectionery, biscuits and snacks industry, the Group has interests in plastic films, cereals, flour and pharmaceutical.

The Company's Board of Directors is primarily composed of members from the sponsoring family, totaling seven individuals. This composition includes the Chairman, two non-executive directors, two executive directors, and two independent directors.

Ismail Industries Limited (ISIL) benefits from a strong and experienced board of directors. The board members possess diverse expertise, including industrial engineering and economics, as well as a deep understanding of the confectionery, biscuits, and snacks industry. The member’s profile of the Company includes the followings: Mr. Munsarim Saif did his Bachelors of Engineering from N.E.D. University of Engineering and Technology, Pakistan. He worked for Pakistan International Airlines prior to joining Ismail Industries Limited. Currently, he is the Chief Executive Officer of Ismail Industries Limited. He played for the National Table Tennis Team for many years and was Pakistan’s Table Tennis champion in 1984. He has been with the Company since its inception and played a key role in setting up the business. Mr. Ahmed Muhammad Ismail serving as an executive director of the Company, completed his graduation from George Washington University (USA), majoring in the field of Economics. As part of the new vision of the Company, Ahmed Ismail has been assigned the role of Chief of Candyland and Ismail Nutrition Business divisions of the Company, where he has been active in modernizing the business while bringing in a more object-oriented approach to managing the Company. Apart from business, he also has a keen interest in golf. Mr. Muhammad Zubair Motiwala served as a former independent director in the Company and was replaced by Mr. Muhammad Zain. Ms. Tasneem Yusuf, serving as an independent director of the Company, is a chartered accountant from ICAP, a fellow member of ACCA and a CPA. After working for Unilever Pakistan, she moved to Dubai and worked for both Deloitte and Nasdaq Dubai. Since moving back in 2009, she has been associated with her family practice where she now heads the audit and assurance services department. Ms. Tasneem Yusuf serves as a board member of Ismail Industries Limited, Reliance Insurance Company Limited, B.F. Modaraba, Faran Sugar Mills Limited, Pakistan Industrial Development Corporation and the Trading Corporation of Pakistan (Private) Limited. She serves ICAP as a member of its Auditing Standards & Ethics Board. Ms. Yusuf has completed the directors training program and the directors training program for State Owned Enterprises from the Pakistan Institute of Corporate Governance (PICG). Mr. Muhammad M. Ismail serving as a non-executive director in the Company, did his B.S. in Industrial Engineering from the University of Florida, USA in 1974. He joined the family concern Union Biscuits and served as a Director till 1989 when he established Ismail Industries Limited. As Chairman of IIL, he oversees all aspects of management including production, sales and distribution, marketing, and expansion and acquisitions. He also has a keen interest in bridge and is an avid golfer. Mr. Maqsood Ismail was the Chairman of the Export Processing Zones Authority, Pakistan. He has also been Vice President of the Federation of the Chambers of Commerce and Industry of Pakistan and a Chairman of Yarn Merchants Association of Pakistan and President of Lasbela Chamber of Commerce. He was also on the board of IDBP, and is now a trustee of the Karachi Port Trust. He was also on the Board of Port Qasim Authority. He was awarded Tamgha-e-Imtiaz (one of the highest civil awards) by the Government of Pakistan in recognition of his services to the community. Mr. Hamid Maqsood Ismail, serving as a non-executive director of the Company completed his graduation from Middlesex Univeristy (London, Uk) majoring in the field of Business Administration and masters from Oxford University. As part of the new vision of the Company, Hamid Ismail has been assigned the role of Chief of Bisconni and SnackCity Business Division, where his achievements include rapid growth in the topline of the business while improving the overall profitability of both segments of the Company. He has a deep interest in improving the technological capabilities of the Company and implementing the accounting software. Under the leadership and guidance of the experienced board, ISIL is well-positioned to capitalize on growth opportunities and deliver long-term value to its shareholders.

During FY25, the Board of Directors convened four meetings, all of which were duly attended by every Board member, including Mr. Muhammad M. Ismail, Mr. Maqsood Ismail Ahmed, Mr. Munsarim Saifullah, Mr. Hamid Maqsood Ismail, Mr. Ahmed Muhammad, Mr. Muhammad Zubair Motiwala, and Ms. Tasneem Yusuf. The governance framework of Ismail Industries Limited was further enhanced by the Human Resource & Remuneration Committee (HR&RC), chaired by Mr. Muhammad Zubair Motiwala (Currently, Mr. Muhammad Zain), and the Board Audit Committee (BAC), chaired by Ms. Tasneem Yusuf, further enhance the governance framework for IIIL, ensuring comprehensive oversight and strategic alignment.

The Company complies with financial reporting and corporate governance framework under the Listed Companies (Code of Corporate Governance) Regulations 2019 and the Companies Act, 2017. Grant Thornton Anjum Rahman Chartered Accountants are the external auditors of the Company. They gave an unqualified opinion on the Company’s financial statements for the year ended June 30, 2025. This reflects a high level of Company's financial reporting integrity. Grant Thornton Anjum Rahman Chartered Accountants are QCR-rated firm and is listed in the State Bank of Pakistan’s category ‘A’ panel of auditors.

Ismail Industries Limited (ISIL) maintains a clear organizational structure, with centralized functions such as Accounts & Finance, Human Resources, IT, and Supply Chain supporting the entire organization. Meanwhile, Sales and Marketing departments are tailored to meet the specific needs of each brand, allowing for targeted brand strategies and operational efficiency.

Mr. Munsarim Saifullah, the Group CEO of Ismail Industries Limited (ISIL), holds a Bachelor’s degree in Engineering from NED University of Engineering and Technology, Pakistan. A long-standing associate of the founding sponsors, Mr. Saifullah has been integral to the Company since its inception, bringing extensive expertise in production and engineering. Mr. Ahmed Raza Parekh (FCA, CIA) serves as the group CFO of the Company. His pivotal role entails spearheading and regulating all aspects of the Accounts, Finance, Costing, Budgeting & Taxation function. He is supported by a team of seasoned professionals, reinforcing ISIL’s leadership and operational capabilities.

The Company has no management committees in place. However, members of the senior management regularly communicate and discuss ongoing issues and upcoming plans relating to relevant brands and management functions.

The Company has now moved from SAP to SAP S/4HANA and success factors on cloud. Multiple cloud service provider solutions have been reviewed and evaluated by the Board and finalized one cloud service provider. The inclusion of SAP S/4 Hana has made a remarkable impact on day-to-day operations, especially data management and presentation and has helped the Company to have more control over the business operations and expand the Company's long-term initiatives.

All of the Company's products are ISO 22000 certified and have received Halal certifications from SANHA. Oversight and effective management are ensured through the internal audit department, which diligently monitors the Company’s various functions and internal controls. This department reports directly to the Board’s Audit Committee, providing an additional layer of accountability. The Board’s Audit Committee Led by Ms. Tasneem Yusuf. While performing risk oversight functions, the Board’s audit committee also evaluates cybersecurity risks. Internal Audit department regularly performs network and cyber security audits, the results of which are presented to the Board’s Audit Committee.

In Pakistan, the domestic convenience food market is growing, with a 4.2% CAGR forecast for 2025-2033.Distribution meets international standards in cities, but expansion opportunities exist in smaller areas. Retail is fragmented; however, large chains are emerging, potentially changing consumer habits. The CPI’s year-on-year increase is 4.5% as of FY2024-25, signaling a slowdown in inflation. This impacts consumer spending,especially on convenience foods, as price hikes in essentials continue. Companies must adapt to these economicshifts to maintain market share. The Condiments category in Urban and Rural inflation levels contributed~9.6% and ~9.2%, respectively, as of 5MFY25.

The Company’s portfolio boasts significant market share across its brands, with ‘Cocomo’ standing as the flagship product under the ‘Bisconni’ umbrella. Recent product innovations in the Candyland range—such as Jelly World, Sour Bites, Pizza Jelly, Sweet Bear, Orangy Jelly, Biggy, Buttons, Bisca, Puffs, Cloud9, Punch Candy, and You Chocolate have further strengthened its market position. Premium Bisconni offerings, including Divine, Mi Amor, Daydream, Digestive, Perfetto, and Chip Hop, also experienced notable sales growth. Additionally, Ghiza and Ismail Nutrition products contributed to higher sales, with the Company’s LNS (Lipid-based Nutrient Supplement) products providing a distinct competitive edge in the market

The Company employs segment reporting for its revenue, divided into two primary segments: Food and Plastics. The Food segment remains the principal revenue driver, contributing approximately 85% of total sales in FY25, with revenue of PKR 89bln (FY24: PKR 93.5bln), reflecting a 4.48% YoY decline. Within the Food segment, local sales amounted to PKR 67.8bln (57% of total revenue) in FY25 compared to PKR 58.5bln (48%) in FY24, indicating a notable shift toward domestic consumption. Conversely, export sales for the Food segment declined to PKR 32.4bln (27%) in FY25 from PKR 45.4bln (37%) in FY24, primarily driving the overall contraction in segment revenue. The Plastics segment contributed the remaining 15% of total revenue, recording PKR 15.8bln in FY25 (FY24: PKR 15.3bln), a 3.2% YoY increase. Plastics-related local sales grew to PKR 14.9bln (13%) in FY25 from PKR 14.4bln (12%) in FY24, while export sales posted a mild uptick to PKR 3.3bln (3%) versus PKR 3.18bln (3%) last year. Overall, the revenue mix for FY25 stood at 118.4bln, with 66% derived from local sales and 34% from exports, compared to FY24’s 121.5bln, where 55% was generated domestically and 45% through exports, reflecting a clear strategic and operational realignment toward the domestic market. The diversity in the revenue stems from well-established brands such as Candyland, Bisconni, SnackCity, Ismail Nutrition, Ghiza Flour, and Astro Films. These brands collectively enable the Company to capture a broad consumer base across multiple product categories, supporting both mass-market and specialized demand. The strong brand equity also allows the Company to maintain pricing power, enhance market penetration, and sustain its competitive positioning across domestic and export markets. Additionally, the multi-brand structure helps mitigate concentration risk by balancing performance across various product lines and geographies.

The company experienced a marginal moderation in its financial performance during FY25, primarily attributable to a 2.5% decrease in sales volume. This impact is clearly reflected in the profitability margins: the Gross Profit Margin slightly decreased to 20.8% in FY25 (down from 22% in FY24), while the Operating Profit Margin saw a more notable reduction to 10.3% (from 12.8% in FY24), suggesting a moderation in overall operational efficiency amid pressure from elevated input costs and lower sales. Consequently, Net Profit declined by 6.2%, settling at PKR 5.7 billion in FY25, compared to PKR 6.1 billion in the preceding year. Notwithstanding the constraint on top-line earnings growth and margin compression, the decline in profitability was partially mitigated by effective financial management and cost control, evidenced by a significant reduction in finance costs, which decreased to PKR 4.8 billion in FY25 from PKR 7.3 billion in FY24, providing crucial support to the bottom line.

The Company is consistently committed to optimizing its operations and has introduced some premium products. Also, the Company has introduced some new business lines. Apart from this, the Company is planning to establish its new “Bisconni Middle East Manufacturing LLC wholly owned subsidiary”, in Abu Dhabi, U.A.E with a total investment of up to $10mln. The Company has made an equity investment of PKR 3,937,500,000 in Ismail Resin to set up a Recycle Polyester Resin (rPET Resin) manufacturing facility with a capacity of 24,000 tons per annum. This initiative aligns with the Company’s commitment to sustainability and innovation, positioning it as a key player in the growing recycled materials market. Additionally, the Company has secured significant contracts with major global brands, including Pepsi, Coca-Cola, and Nestlé. These partnerships are expected to drive growth and reinforce the Company's market presence, further enhancing its reputation as a reliable and progressive industry leader.

The Company's working capital requirements, which comprise inventory, trade receivables, and trade payables, are strategically financed through a combination of internal cash generation and short-term debt facilities. During FY25, working capital management yielded mixed outcomes, prompting an elongation of the Gross Working Capital days to 84 days (up from 77 days in FY24). This extension was primarily driven by a noticeable stretch in Days Sales Outstanding or receivable days, which reached 46 days (FY24: 40 days), indicating potentially slower collection cycles and higher capital tie-up in customer credit. Although inventory days remained relatively stable at 38 days (FY24: 37 days), contributing marginally to the gross working capital expansion, the increase suggests slightly slower inventory turnover and greater stock holding. Conversely, the Net Working Capital days saw a slight decline due to an improved utilization of supplier credit, reflected by the extension of Days Payable Outstanding or payables days to 26 days (FY24: 21 days). The overall lengthening of the receivable cycle combined with the extension in payable days suggests a potential increase in the Cash Conversion Cycle. While the extended payables provide a form of interest-free financing and mitigate the impact of longer receivable days on net working capital, the overall increase in gross working capital days points to a greater operational working capital requirement and increased reliance on financing sources. However, this is counterbalanced by a robust improvement in the Current Ratio to 3.6x, which strongly affirms the Company's superior short-term liquidity position and its enhanced capacity to meet immediate financial obligations. Moving forward, management should focus on optimizing the receivable collection process to reduce Days Sales Outstanding and minimize capital lockup, thereby ensuring that the strong liquidity position translates into efficient strategic asset utilization and sustainable operational growth.

The Company's debt-servicing capacity and overall financial health are primarily assessed through its ability to cover finance costs using operational cash flows and earnings before interest and taxes (EBIT).The Free Cash Flow from Operations (FCFO) declined substantially by approximately 22.9% in FY25, settling at PKR 12.5 billion (down from PKR 16.1 billion in FY24). This significant drop indicates weaker cash generation from core operations and suggests a decline in operational efficiency. Despite this decline in cash flow, the Interest Coverage Ratio (FCFO over Finance Costs) improved significantly to 2.6x in FY25 from 2.3x in FY24. This counterintuitive improvement is directly attributable to the substantial reduction in Finance Costs, which decreased by over 40% from PKR 7 billion in FY24 to PKR 4.8 billion in FY25. The reduction in finance costs, likely due to a reduction in effective interest rates, indicates improved financial efficiency and an enhanced ability to meet interest obligations from cash flows. Similarly, the EBITDA over Finance Cost ratio also improved markedly to 3.1x in FY25 (up from 2.5x in FY24), further affirming the Company's stronger capacity to cover interest expenses from operating earnings.The Total Coverage ratio (EBIT over total financial obligations) declined marginally from 1.2x to 1.1x. This reduction suggests a reduced capacity to cover all fixed financial obligations from current earnings, reflecting underlying pressure on operational earnings relative to total mandatory payments. Furthermore, the Debt Payback Ratio (a measure of time required to pay off debt using EBITDA or operating cash flow) deteriorated, increasing from 4.0x to 5.1x. In summary, the Company exhibits a dichotomy in its financial coverage metrics for FY25. While effective management of the debt portfolio has lowered the cost of borrowing, the fundamental operational weakness needs to be addressed to ensure sustainable long-term financial health and improved ability to repay the total debt burden.

The Company maintains a highly leveraged capital structure, with the Leverage Ratio holding steady at 65.9% during FY25 (FY24: 67.5). Although this level reflects a marginal improvement driven by an increase in the equity base, it fundamentally signifies a heavy reliance on debt financing, elevating the Company's overall financial risk and its vulnerability to adverse movements in interest rates and market volatility. Total Borrowings saw an increase from PKR 50 billion in FY24 to PKR 56 billion in FY25, indicating an aggressive funding strategy, likely deployed to finance growth initiatives or support increased working capital needs. Short-Term Borrowings also increased significantly from PKR 13.9 billion to PKR 17.8 billion, which now represents approximately 31% of total borrowings. Despite the focus on short-term debt management, this increase suggests a rise in immediate funding needs, potentially reflecting a decline in the ability to manage short-term obligations through internal means. Long-Term borrowings rose from PKR 20 billion to PKR 24.8 billion, underscoring an expanded reliance on external, longer-duration financing to fund core operations and capital expenditure. A positive note for immediate liquidity is the slight decrease in the Current Maturity of Long-term Debt from PKR 6.3 billion to PKR 6.1 billion, marginally easing near-term repayment pressure. Furthermore, the Company successfully issued PKR 8 billion in Privately Placed Term Sukuk (PPSTS), simultaneously redeeming an equal amount of previously issued PPSTS. This action demonstrates the Company's ability to access alternative funding sources, which is crucial for diversifying the debt structure and optimizing overall funding costs. Overall, management should prioritize leveraging the improved borrowing terms to de-risk the capital structure over the long term, potentially by using lower-cost debt to strategically pay down the higher-cost components or by prioritizing equity financing for future expansion.