Mumtaz Feeds & Allied Industries (Pvt.) Limited, referred to as Mumtaz Feeds or the Company, is a private limited company incorporated in Pakistan on March 11, 2016 under the applicable companies law of the jurisdiction. The Company subsequently adopted its present name of Mumtaz Feeds & Allied Industries (Pvt.) Limited. It is headquartered in Multan, Punjab, where its manufacturing and principal business operations are located. The Company functions as a constituent entity of the Mumtaz Group, which maintains presence across the agro based value chain through solvent extraction operations under Mumtaz Agro Industries and commercial broiler farming under Mumtaz Chick and Mumtaz Protein Farms.

The sponsoring group has been associated with the poultry feed business for over fifteen years in varying capacities, including feed trading and the trading of soybean meal, prior to formalising a manufacturing platform. In 2016 the sponsors collaborated to incorporate the Company, and commercial production of poultry feed commenced in 2017. Growth since inception has been organic in nature, funded predominantly through sponsor equity injections and the retention of internally generated profits rather than acquisition led expansion or material recourse to debt capital. Over successive years the Group extended its footprint along the poultry value chain, adding backward integration through solvent extraction and forward integration through commercial poultry farming operations in Southern Punjab, thereby positioning the feed business within a broader integrated structure. Group level diversification initiatives have also been contemplated in the consumer goods segment through a planned soap venture and in the edible oil and ghee segment under a dedicated Group banner.

The Company manufactures and sells broiler and layer poultry feed in multiple formulations, with a product portfolio comprising sixteen variants spanning starter, grower and finisher categories. Installed annual production capacity stands at 144,000 metric tons, equivalent to 40 metric tons per hour, operated from the Company's facility in Multan, and capacity utilisation was reported at 31% during the year ended 30 June 2026, leaving substantial headroom for volumetric growth without material fresh capital outlay. The Company occupies the feed manufacturing node of the poultry value chain, positioned between grain and oilseed meal suppliers upstream and commercial broiler and layer farms downstream. Procurement centres on maize, wheat, soybean meal and micro ingredients, with soybean meal sourced from an associated concern engaged in solvent extraction, which supports input continuity and cost efficiency. Distribution is concentrated in Southern Punjab and is channelled through a combination of direct institutional supply and dealer based sales, with sales to associated poultry farming concerns representing a significant portion of dispatches. Broiler feed formulations remain the anchor of the portfolio, with the flagship broiler variants in a growth to maturity lifecycle stage within a competitive domestic market. Operations are entirely domestic and revenues are denominated in local currency, with no export exposure reported.

Effective control over strategic direction rests with Mr. Aamir Ali Khan, who holds the single largest stake of 35% and simultaneously serves as Chief Executive Officer and Chairman of the Board, making him the ultimate decision maker at the last mile. The remaining shareholding is distributed among Mr. Muhammad Umer with 20%, Mr. Nasir Malik with 17.5%, his brother Mr. Yasir Malik with 17.5%, and Dr. Muhammad Aslam with 10%. Ultimate beneficial ownership therefore vests directly with the five sponsoring individuals, and the Company is held within the wider Mumtaz Group structure through common sponsor ownership rather than through a formal holding company.

Ownership has remained stable within the same group of five sponsors since incorporation in 2016, reflecting continuity of sponsor commitment through the volatile feed price environment of recent years. Two of the shareholders are related as brothers, which reinforces the family and closely held character of the structure. Sponsor commitment is evidenced by the retention of earnings within the business and by the funding of working capital requirements largely from internal cash generation rather than external borrowing.

The sponsors collectively carry over a decade and a half of exposure to the poultry and poultry feed industry, and Mr. Aamir Ali Khan has been engaged in the sale of poultry feed and the trading of soybean meal for more than two decades. This tenure spans multiple feed price and poultry demand cycles, including the period of acute soybean meal supply disruption and the subsequent normalisation, and the sponsors have demonstrated an ability to preserve profitability through the recent phase of price deflation and volumetric pressure. The sponsors' other ventures within the Mumtaz Group, covering solvent extraction and commercial broiler farming, operate in adjacent segments of the same value chain, which deepens their understanding of demand formation, formulation economics and procurement timing.

Sponsor financial strength is derived from vested interests across the poultry value chain, encompassing solvent extraction and poultry farming operations held under common ownership, which provide alternative sources of liquidity and operational support to the Company. Within the Company itself, the equity base stood at PKR 1,712mln at 30 June 2026 against PKR 1,611mln at 30 June 2025, built entirely through paid up capital and accumulated retained profits, and total borrowings of only PKR 50mln at 30 June 2026 indicate that the balance sheet has been financed principally by sponsor equity and retained earnings. Related party exposure moved to a net asset position of PKR 26mln at 30 June 2026 from a net liability position of PKR 55mln at 30 June 2025, indicating that the Company was not dependent on related party funding during the year. The demonstrated willingness of the sponsors to allow profits to be retained rather than distributed provides a measure of implicit financial support to the credit profile.

The Board of Directors comprises three members, consisting of one Executive Director and two Non Executive Directors, with no independent representation on the Board. Two Board subcommittees have been constituted, namely the Audit and Risk Management Committee and the Procurement and Development Committee, which address financial oversight and input sourcing respectively.

Mr. Aamir Ali Khan serves as Chief Executive Officer and Chairman of the Board and brings more than two decades of experience in the sale of poultry feed and the trading of soybean meal, giving the Board direct commercial and procurement expertise in the Company's core activity. Dr. Muhammad Aslam, who holds a 10% shareholding and serves as General Manager Production, carries nineteen years of industry experience of which nine years have been with the Group, and holds a postgraduate qualification in animal nutrition, contributing technical formulation and production expertise at the Board level. The remaining Board representation is drawn from the sponsoring shareholder group, whose members carry over a decade of poultry industry exposure. The Board therefore combines commercial, procurement and technical production competencies, although financial, legal and independent non executive skill sets are not separately represented, and directors are drawn from the sponsor pool with tenures extending from incorporation.

The Board has established a working oversight structure through its two subcommittees, with the Audit and Risk Management Committee serving as the primary channel for review of financial reporting and risk matters, including the material volume of transactions conducted with associated concerns that arise from both the sale of feed to Group poultry farms and the procurement of soybean meal from the Group solvent extraction operation. The positions of Chairman and Chief Executive Officer are held by the same individual, which is not consistent with established corporate governance best practices.

The external audit is undertaken by Waqas & Co. Chartered Accountants. The firm holds a satisfactory Quality Control Review rating; however, it is not included on the State Bank of Pakistan’s panel of auditors. The auditors issued an unqualified opinion on the financial statements for the year ended 30 June 2025.

The Company operates a flat organisational structure built around seven functional departments, namely Production, Marketing, Procurement, Head Office, Audit and Tax, Accounts and Imports. All departmental heads report directly to the Chief Executive Officer, who consequently sits at the apex of every reporting line. The decision making model is therefore centralised, with strategic, pricing, procurement and capital allocation authority concentrated at the Chief Executive Officer level and departmental heads exercising delegated authority within operational limits. The internal audit function reports directly to the Chief Executive Officer, which places assurance within the same reporting line as the functions it reviews. The flat span of control supports rapid decision making in a business where procurement and pricing decisions must respond quickly to commodity price movements, but it increases dependence on a single individual for coordination across functions.

Mr. Aamir Ali Khan, Chief Executive Officer, has more than twenty years of experience in poultry feed sales and soybean meal trading and has led the Company since incorporation. Dr. Muhammad Aslam, General Manager Production, holds a Master of Science with Honours in animal nutrition and brings over a decade of experience in poultry feed manufacturing and formulation, with nineteen years of total industry experience including nine years within the Group. Mr. Bilal serves as Chief Financial Officer with eight years of professional experience and holds responsibility for financial reporting, working capital management and compliance. The senior team has remained materially unchanged across the last three years, indicating low executive turnover and continuity of institutional knowledge.

Management has demonstrated strong execution by maintaining profitability in a contracting market, turning around cash flows to positive inflows, and significantly reducing financing costs. Operational discipline is evident in strict credit controls, strategic raw material stocking, and rigorous adherence to food quality standards, ensuring consistent, competitively priced formulations.

The Company operates an internally developed software platform comprising three modules covering Financial Accounting, Sale and Purchase, and Software Security, designed specifically to meet the Company's accounting and inventory management requirements.

Management maintains a structured control environment anchored by Board-level oversight through the Audit and Risk Management Committee and the Procurement and Development Committee, alongside production-stage quality controls and strict regulatory compliance. Operationally, the framework is supported by system segregation in sales, purchasing, and software security, as well as an internal audit function reporting directly to the Chief Executive Officer. However, full reporting independence to the Audit Committee would further strengthen the framework.

Pakistan’s poultry sector is a vital, fast growing agricultural pillar contributing over PKR 923bln to the economy and employing 1.5 million people, though its lack of export outlets leaves domestic pricing fully exposed to local supply imbalances. Structurally fragmented with around 300 commercial feed mills operating below capacity, the industry centers on feed manufacturing, which accounts for 65% to 70% of production costs, and is projected to expand at a 7.9% CAGR through 2032. Operations face high cyclicality and supplier power driven by intensive dependence on domestic maize, nearly 65% consumed by poultry feed, and imported soybean meal, exposing players to international commodity prices and currency fluctuations. Customer power is moderate, but credit risk remains high due to short 35 to 42 day production cycles and geographic concentration in Punjab. Furthermore, the sector navigates significant vulnerabilities, including regulatory and import policy discontinuities, high working capital intensity, counterparty risks from thinly capitalized farms, and disease outbreak threats, while technological and formulation shifts increasingly focus on operational efficiency and import substitution.

Operating at a 31% capacity utilisation rate for the year ended 30 June 2026, the company experienced a 5.7% sales contraction to PKR 5,487mln, diverging from the broader industry growth trajectory while successfully stabilising its topline compared to previous sharp declines. Competitive differentiation relies heavily on group integration, which secures soybean meal from an associated extraction plant and guarantees volume continuity through captive offtake channels with group poultry farms, alongside favorable logistics in the Southern Punjab poultry belt and sponsor-led procurement expertise.

Revenue for the year ended 30 June 2026 stood at PKR 5,487mln, down 5.7% from PKR 5,819mln in the previous year, following the sharper 48.5% decline recorded in FY2025. The Company continues to derive the bulk of its revenue from broiler feed formulations, with the flagship variant contributing nearly half of turnover. Customer concentration remains notable, as approximately half of sales are generated from associated Group entities, namely Mumtaz Chicks and Mumtaz Proteins. Geographically, the revenue base remains entirely domestic, with sales predominantly concentrated in Southern Punjab.

Operating efficiency remains tightly bound to raw material dynamics, with cost of goods sold absorbing 96.1% of revenue at PKR 5,271mln for the year ended 30 June 2026, which yielded a slightly compressed gross margin of 3.9% compared to 4.1% previously. Key inputs such as maize, wheat, and soybean meal, sourced largely via an associated Group extraction plant, generate concentrated supplier reliance alongside indirect exposure to import driven price volatility. Despite overhead absorption being constrained by a 31% capacity utilisation rate, operating expenses remained minimal at just 1.1% of revenue, underscoring a heavily variable cost structure that successfully preserved profitability across consecutive years of topline contraction. The operating margin settled at 2.8%, whereas the net margin edged upward to 1.8% from 1.7%, propelled by reductions in financing expenses and lower tax burdens.

Strategic direction centers on defending market presence through competitive pricing and consistent quality, supported by a demonstrated topline stabilization and disciplined cost control. Long term viability is underpinned by a projected industry growth rate of 7.9%, substantial unutilized capacity that permits volumetric expansion without heavy capital expenditure, and operational integration within the Mumtaz Group. However, key constraints include a thin gross margin that offers limited buffer against input shocks, heavy reliance on associated concerns for dispatches, and a subscale cost position. Furthermore, the business must navigate external vulnerabilities such as regulatory shifts in grain and feed policies, climate risks affecting domestic agriculture, and compliance with local food safety frameworks, while broader group diversification outside the company balance sheet promises potential operational synergies over time.

The working capital cycle lengthened for the year ended 30 June 2026 as the net cycle stretched to 76 average days from 67 average days for the year ended 30 June 2025, driven entirely by a deliberate accumulation of inventory that pushed average days to 118 and now accounts for the majority of total assets. Receivables management remains exceptionally strong with a collection period of around eight days for the year ended 30 June 2026, reflecting stringent credit controls and captive dispatches to associated entities. This inventory build was substantially financed on the funding side through an extension of supplier credit, allowing the company to avoid heavy reliance on short term bank borrowings.

Coverage indicators strengthened materially for the year ended 30 June 2026, driven by restored operational cash generation and a sharp reduction in the cost of debt. Net cash provided by operating activities rebounded to PKR 166mln from an outflow of PKR 64mln in the preceding year, while free cash flow comfortably covered financial commitments 5.5 times. This performance was supported by a drop in financing expenses resulting from lower average borrowings and a significantly reduced average borrowing rate in line with domestic benchmark trends, pushing EBITDA coverage of finance cost to 55.6 times for the year ended 30 June 2026. Furthermore, minimal maintenance capital expenditure preserved cash flow quality, and interest obligations were met without accrual buildup, though cash continuity remains tied to a single business line and the liquidity of associated group counterparties.

The capital structure remains conservatively positioned and improved further over the review period, with total borrowings declining to PKR 50mln at 30 June 2026 from PKR 87mln at 30 June 2025, while shareholders equity strengthened to PKR 1,712mln from PKR 1,611mln through the retention of net income of PKR 101mln. Leverage, measured as total borrowings against the sum of total borrowings and equity, accordingly eased to 5.8% at 30 June 2026 from 8.1% at 30 June 2025, a level that stands far below the sector norm, which places the company among the least leveraged participants in its segment. Financial policy remains aligned with management’s strategic objective of maintaining a low debt profile, with working capital primarily funded through internally generated cash flows and supplier credit rather than bank financing. The Company has consistently adhered to this approach across the cycle, with leverage remaining low and declining further in the latest period despite a substantial build-up in inventory, supporting continued financial flexibility.