Global Marketing Services (hereinafter referred to as 'GMS' or 'the firm') was established as a partnership in March 1999 and is registered under the Partnership Act, 1932. Its registered office is situated at 111, Hali Road, Westridge 1, Rawalpindi, Pakistan. The firm operates through two distinct business divisions, namely the Clinical Division and the Medical Division, each with a separately constituted ownership structure.

GMS was established in 1999 with a mandate to supply healthcare, diagnostic, and life science solutions to Pakistan's public and private sector healthcare institutions. Over the course of more than two decades, the firm has progressively expanded its product footprint across biomedical research, life sciences, clinical diagnostics, industrial diagnostics, interventional techniques, medical devices, biologicals, and pharmaceuticals. Growth has been primarily organic, underpinned by the successive addition of exclusive international principal agreements that have deepened the firm's technical capabilities and broadened its product portfolio. A dedicated cardiac division was subsequently added to supply consumables for cardiac medical devices, further diversifying revenue sources. The firm became a member of the multinational business network viSole, which has established operations in more than ten countries across Asia, Europe, and North America. In FY24, the Medical Division recorded meaningful volume growth following the addition of the Abbott Medical portfolio, representing a significant commercial milestone in the firm's expansion trajectory. The sponsors have resolved to consolidate the two divisions under a single corporate entity, with the corporatization process already underway as of the period under review.

GMS operates through two primary business divisions, Clinical and Medical. The Clinical Division focuses on laboratory diagnostic and testing equipment, encompassing core and molecular diagnostics, Onco DX, and clinical genomics, while the Medical Division specialises in cardiology, electrophysiology, surgical connections, and infection prevention technologies. Following the corporatization of both divisions into a single consolidated entity, GMS is expected to report performance on a consolidated basis going forward rather than by individual division. The firm sources all of its inventory through imports from over 30 international manufacturers, including exclusive partnerships with Abbott, Johnson and Johnson, Steris, Biomerieux, and Cordis, among others. As GMS imports the entirety of its inventory, it carries inherent exposure to currency fluctuations, which the firm mitigates through long-term supply contracts with major customers that allow products to be priced in line with prevailing USD exchange rates. The firm maintains a nationwide distribution footprint with a presence across all major cities including Rawalpindi, Peshawar, Lahore, Karachi, Quetta, and Hyderabad. GMS works with 29 distributors across Pakistan and has indicated plans to expand this network further. Key customers in the Clinical Division include Aga Khan Hospital, Shaukat Khanum Memorial Cancer Hospital, Chughtai Lab, and Dow University Karachi, while the Medical Division serves institutions such as Punjab Institute of Cardiology and National Institute of Cardiovascular Disease, Karachi. The firm is recognized as the first medical entity in Pakistan to have achieved certifications for ISO 9001:2015 and Good Distribution Practice for Medical Devices.

GMS maintains distinct ownership structures across its two operating divisions. In the Clinical Division, Mr. Zafar Mehmood holds the majority stake of ~68%, Mr. Muhammad Ayub holds ~20%, and Ms. Naheed Dilshad holds the remaining ~12%. In the Medical Division, Mr. Zafar Mehmood holds ~60%, Ms. Naheed Dilshad holds ~32%, and Mr. Muhammad Ayub holds ~8%. All three partners are Pakistani nationals. Mr. Zafar Mehmood, as the majority stakeholder in both divisions and the Group Chief Executive Officer of the viSole Group of Companies, exercises effective strategic control over the firm's direction and operations.

The partnership between Mr. Zafar Mehmood and Mr. Muhammad Ayub has remained intact for over two decades, providing a stable ownership foundation. A formal partnership agreement governs the relationship between the sponsors.

The sponsors of GMS collectively bring over two decades of expertise in Pakistan's healthcare and life sciences sector, as detailed under Members' Profile. Mr. Zafar Mehmood's leadership, as Group Chief Executive Officer of the viSole Group of Companies, has extended operations across more than ten countries in Asia, Europe, and North America, with subsidiaries and affiliates including viSole FZC UAE, viSole Pakistan, UAB EuroGenomics, LDS Pvt. Ltd. Pakistan, viSole Canada, and Maefco Food Pakistan, underpinned by a strategic focus on introducing affordable and innovative solutions in medical devices, diagnostics, pathology, oncology, vaccines, and biologicals. Mr. Muhammad Ayub's long-standing association with GMS has contributed meaningfully to the firm's sustained market presence, while Ms. Naheed Dilshad adds clinical and technical perspective to ownership deliberations.

The sponsors' financial capacity is considered adequate. Their willingness and ability to inject capital into the business have been demonstrated through historical capital contributions made to support divisional expansion. The presence of the viSole Group of Companies, a diversified healthcare conglomerate with an established international footprint, provides an additional layer of financial resilience and reinforces the sponsors' capacity to extend extraordinary support to GMS should operational or liquidity stress materialise, as reflected in the steady equity accumulation.

The governance structure of GMS consists of the three founding sponsors who collectively constitute the Board of Directors. The members include Mr. Zafar Mehmood in the role of Chief Executive Officer, Mr. Muhammad Ayub in the role of Director of Operations, and Ms. Naheed Dilshad as a board member. As GMS operates as a registered partnership, formal compliance with corporate governance codes applicable to listed entities is not mandatory. No independent directors have been appointed, and no formal board committees covering audit, human resource, or remuneration functions have been constituted. The Chairman and CEO roles are not separately held, as Mr. Zafar Mehmood fulfils both functions, representing an area where governance practices could be further strengthened through the separation of oversight and executive responsibilities.

Mr. Zafar Mehmood holds an MBA and a Master's degree in English Literature and brings over 23 years of entrepreneurial and executive management experience in healthcare and life sciences. He oversees the strategic direction of both GMS and the viSole Group of Companies from its corporate office in the United Arab Emirates, with demonstrated experience in establishing and managing multinational business operations across Asia, Europe, and North America. Mr. Muhammad Ayub holds an MBA and has over 23 years of operational and strategic experience accumulated through his association with GMS, contributing directly to the firm's commercial and operational management. Ms. Naheed Dilshad is a qualified medical graduate holding an MBBS degree with extensive professional experience, bringing clinical and technical expertise to the board that supports alignment between business strategy and healthcare industry best practices. The board composition reflects strong sector knowledge and long-standing institutional familiarity; however, the absence of independent directors limits the breadth of external oversight and independent challenge available to management.

The current board structure operates without formal board committees, which constrains the depth of structured oversight across financial reporting, audit, and compensation matters. The Chief Executive Officer convenes regular meetings with departmental heads to review performance, monitor progress against operational and financial targets, and set strategic direction, which provides a functional substitute for committee-level governance. However, the absence of an independent chairperson, independent directors, and formally constituted committees, including an audit committee with defined oversight of related-party transactions, represents a structural governance gap relative to best practice standards.sight over such transactions. No formal board evaluation mechanism has been identified. Governance improvement will be a natural outcome of the planned corporatization process.

The external audit of GMS is conducted by Suriya Nauman Rehan and Co., Chartered Accountants, a firm listed in Category 'B' on the State Bank of Pakistan's panel of auditors. The auditors expressed an unqualified opinion on the annual financial statements for the year ended 30 June 2025, indicating that the financial statements present a true and fair view of the firm's financial position and performance. No qualifications, emphasis of matter paragraphs, or going concern modifications have been reported in the audit opinions over the review period. GMS has also established an internal audit department that reports directly to senior management and prepares monthly audit reports that are formally reviewed by higher management, reinforcing the internal control framework and supporting timely identification of operational and financial risks.

GMS maintains a structured organisational framework with clearly delineated functional departments. The Chief Executive Officer occupies the apex of the reporting hierarchy, with divisional and functional heads reporting upward to this level. Key functional departments include Supply Chain, Operations, Sales and Marketing, Information Technology, Finance, Quality Management, and Business Development. The decision-making model is broadly centralised, with strategic and material operational decisions resting primarily with the Chief Executive Officer and the senior partners. Delegation of authority to functional department heads governs day-to-day operations within defined parameters, ensuring operational continuity across business lines.

Mr. Zafar Mehmood, the Chief Executive Officer, brings over 23 years of experience in healthcare and life sciences and provides the strategic leadership underpinning GMS's growth and expansion. Mr. Muhammad Ayub, Director of Operations and an MBA graduate, contributes over 23 years of operational expertise and plays an integral role in day-to-day management and strategic execution. Mr. Shahid Iqbal, Director Sales and an MBA graduate, holds over 20 years of industry experience and is responsible for nationwide sales strategy and market development. Mr. Majid Jamal serves as Associate Director Sales with 15 years of relevant experience, while Mr. Shahid Zaman Bhatti, General Manager Supply Chain, brings 20 years of experience to the management of procurement and logistics functions. Mr. Muhammad Afzal, an MBA graduate, joined GMS in December 2024 as Chief Financial Officer and is responsible for overall financial strategy, planning, and reporting, reporting directly to the Chief Executive Officer. Mr. Mukhtiar Ali Bukhari, a qualified Cost and Management Accountant, serves as Finance Manager under the CFO, supporting day-to-day financial planning and control. Key-person risk is concentrated in Mr. Zafar Mehmood, whose departure would materially impair strategic continuity and principal relationships. The broader management team's long-standing association with the firm provides a degree of institutional depth; however, a formally documented succession framework for the Chief Executive Officer role has not been identified, representing a risk that warrants management attention.

Management has demonstrated a consistent ability to expand the firm's principal portfolio, maintain strategic alliances with globally recognised healthcare manufacturers, and extend GMS's geographic and institutional reach within Pakistan. The addition of the Abbott Medical portfolio in FY24 and the resulting growth in Medical Division volumes reflect management's effectiveness in identifying and executing commercial partnerships that drive revenue diversification. The absence of formal management committees and a documented process for recording minutes of management meetings remain areas that, if addressed, would strengthen cross-departmental coordination and strategic accountability.

GMS has implemented SAP 9.3-based enterprise resource planning software, developed and deployed by M/S Abacus Consulting. The system supports operational and financial oversight across the firm's business divisions and enables real-time variance analysis against operational and financial benchmarks. Senior management, including the Chief Executive Officer, utilises well-structured Management Information System dashboards to monitor business performance and support timely decision-making. The platform facilitates performance tracking across key operational metrics, enabling proactive management responses to emerging operational or financial developments.

GMS operates a dedicated internal audit department whose scope encompasses comprehensive compliance audits across the firm's operational and financial functions. Audit findings and instances of non-compliance are reported to senior management on a monthly basis, ensuring continuous oversight and timely corrective action. The internal audit function reports directly to senior management, which, while providing operational proximity, may limit the independence of the function relative to best-practice standards where audit reporting to an independent board-level committee is preferred.

The global medical devices and diagnostics industry have entered a sustained growth phase, with the global medical devices market valued at ~USD 678.88 billion in 2025 and having reached ~USD 719.61 billion in 2026, on track to reach ~USD 1,209.42 billion by 2035, expanding at a compound annual growth rate of ~5.94% through the forecast period. Growth is being driven by the rising global burden of chronic diseases, demographic ageing, increasing adoption of artificial intelligence enabled diagnostic platforms, and expanding demand for minimally invasive procedures and connected healthcare solutions. In vitro diagnostics held the largest segment share within the global market in 2025, accounting for ~16% of total market volume, while diagnostic centres represent the fastest-growing end-user segment globally. North America retained market leadership with ~38% to 40% of global revenue in 2025, while Asia Pacific is identified as the fastest-growing regional market, supported by expanding healthcare infrastructure and sustained government investment in medical technology. Pakistan's medical devices market is projected to grow at ~8.57% annually through 2029, reaching a market volume of ~USD 921.70 million, reflecting growing demand for affordable medical devices as the country strives to improve healthcare access across a large and underserved population. Pakistan's pharmaceutical market surpassed PKR 1 trillion in annual value by end of calendar year 2025, placing it among the largest industrial segments in the country, with local manufacturers commanding over 70% of the domestic market by value. The healthcare sector in Pakistan operates in a dual public and private structure, with provincial governments bearing primary administrative responsibility. Pakistan continues to face structural healthcare challenges including limited per-capita healthcare spending, dependence on imported medical equipment and consumables, significant foreign exchange exposure at the industry level, and inadequate domestic healthcare infrastructure outside major urban centres. The regulatory environment for medical devices and diagnostics in Pakistan is governed by the Drug Regulatory Authority of Pakistan. The imposition of a revised sales tax on previously zero-rated medical devices in FY25 had increased effective costs for distributors and dampened demand through much of FY26; however, the Budget 2026-27 introduced meaningful relief, abolishing the 3% value-added tax on imported finished pharmaceutical and diagnostic products under the Twelfth Schedule and cutting customs duties across 92 tariff lines, including full exemptions on APIs used for cancer and other critical medicines, which is expected to ease cost pressure on distributors including GMS going into FY27. Separately, sector-wide import dependency has shifted further toward China, which supplied over half of Pakistan's pharmaceutical and healthcare-related import value in FY25, following the suspension of trade with India since 2025 amid cross-border tensions. The top credit risk factors endemic to this sector include foreign exchange rate volatility given the high import dependency of medical device distributors, regulatory and tariff changes affecting cost structures, concentration risk arising from dependence on a limited number of international principals, evolving competitive dynamics from lower-cost Chinese entrants, and the sensitivity of public sector procurement to government budget allocations and payment cycles. Technology disruption is an emerging consideration, with artificial intelligence integration in diagnostics and the proliferation of point-of-care testing platforms creating both opportunity and competitive pressure for traditional distribution-oriented business models. Environmental, social, and governance considerations are gaining importance globally, particularly around supply chain ethics and product quality standards, though their immediate regulatory impact on Pakistani distributors remains limited.

GMS has established a defensible competitive position in Pakistan's clinical diagnostics and medical devices distribution sector, underpinned by exclusive alliances with more than 15 internationally recognised principals, including Bio-merieux, Abbott Medical, Cordis, Johnson and Johnson Medical, and Steris Corporation. These exclusive arrangements provide GMS with a structural competitive advantage that is difficult to replicate in the near term, as they are governed by long-term contractual relationships built over multiple decades. The firm's dual division model, spanning both the Clinical and Medical segments, provides a degree of revenue diversification not commonly available among smaller domestic peers. The firm serves a high-quality customer base concentrated in both the public and private healthcare sectors, including flagship tertiary care institutions that provide stable and recurring demand. Competition in the sector has intensified due to the entry of lower-cost Chinese diagnostic and medical device suppliers, which puts pressure on pricing in certain product categories. GMS's response to these competitive dynamic lies in its brand differentiation, quality certifications, and the technical complexity of its product portfolio, which reduces direct substitutability. Since the last review cycle, the firm's relative positioning has been supported by the progressive recovery of demand following the initial disruption caused by the imposition of a revised sales tax on medical devices, with management anticipating that pricing adjustments will progressively absorb this cost pressure through FY26.

During 9MFY26, GMS recorded sales of ~PKR 5,210mln, compared to ~PKR 5,282mln in FY25, reflecting a year-on-year growth of ~31.5% over FY25, driven by the continued recovery of demand in the Medical Division following the progressive absorption of the sales tax impact on medical devices and growing volumes from the Abbott Medical portfolio. Revenue quality is supported by the firm's long-term contractual relationships with major healthcare institutions, which provide a degree of revenue recurrence and reduce customer concentration risk at the individual account level. Revenue concentration at the segment level warrants ongoing monitoring given the dependence of each division on a limited set of exclusive principal relationships. GMS's cost base reflects reliance on a concentrated set of international principals. In the Clinical Division, Biomerieux was the top vendor by import value (~PKR 1,386mln as of Mar-26), followed by Illumina Netherlands BV and Leica Biosystems. In the Medical Division, Cordis (~PKR 578mln) and Abbott Medical Hong Kong (~PKR 531mln) together represented a majority of divisional imports as of Mar-26. This concentration among a small number of exclusive suppliers exposes GMS to disruption risk should any principal relationship terms change, though the exclusivity itself is also a source of the firm's competitive advantage, as discussed under Relative Position.

The gross profit margin for the 9MFY26 stood at ~26.7%, compared to ~24.7% for the year ended FY25, indicating a modest recovery in gross profitability as the elevated cost pressures from the sales tax imposition and currency depreciation effects began to normalise. The net profit margin improved meaningfully to ~10.1% for the 9MFY26, compared to ~2.8% for FY25, with the improvement driven by lower finance costs reflecting the declining interest rate environment in Pakistan during the current fiscal period and by operating cost discipline. The entity's average borrowing rate declined to ~11.9% for the Mar-26 period compared to ~19.8% for FY25, reflecting the significant monetary policy easing in Pakistan over this period and directly benefiting the firm's finance cost line. The operating expense ratio has remained broadly controlled, with operating expenses of ~PKR 668mln for the 9MFY26 against ~PKR 703mln for the full year FY25, reflecting cost management relative to the scale of revenues in the current period.

Management's strategy for sustaining GMS's competitive position centres on deepening existing principal relationships, expanding the distributor network from 29 partners to a broader national footprint, and completing the corporatization of both divisions under a consolidated private limited company by the end of FY26. The corporatization initiative, if executed as planned, is expected to enhance governance standards, facilitate structured capital access, and improve financial transparency, all of which would positively influence the firm's long-term competitive positioning. Management regularly reviews financial projections to monitor performance against strategic targets and assess future growth prospects.

The working capital profile of GMS reflects the characteristics typical of a healthcare distributor operating on credit-based terms with public and private sector institutions. For the 9MFY26, the gross working capital cycle stood at ~190 days, an improvement from ~245 days recorded for the FY25, indicating better aggregate asset efficiency in the current period. The net working capital cycle similarly tightened to ~82 days for the 9MFY26, compared to ~138 days for FY25, reflecting more efficient management of the payable cycle relative to receivable and inventory balances. Trade receivables as of 9MFY26 stood at ~PKR 2,144mln (FY25: ~PKR 1,919mln), while inventories stood at ~PKR 1,944mln (FY25: ~PKR 1,232mln). The increase in inventories reflects deliberate stock build-up in anticipation of demand recovery, while the receivables growth is consistent with higher annualised revenue throughput. Trade payables as of 9MFY26 stood at ~PKR 2,459mln (30 June 2025: ~PKR 1,673mln), reflecting the firm's utilisation of supplier credit as a working capital funding mechanism. The current ratio remained at ~1.7x as of 9MFY26 (FY25: 1.8x), indicating adequate short-term liquidity. Related-party liabilities stood at ~PKR 794mln as of 9MFY26 (FY25: ~PKR 509mln), representing a material component of the current liabilities base and reflecting intra-group funding arrangements.

The free cash flow from operations for the 9MFY26 stood at ~PKR 425mln on a pre-working capital-change basis, compared to ~PKR 429mln for the FY25. The EBITDA to finance cost ratio improved substantially to ~11.0x for the 9MFY26, compared to ~6.6x for FY25, reflecting the compounding benefit of declining interest rates and strengthening operating profitability. The free cash flow from operations to total debt service coverage ratio stood at ~3.8x for the 9MFY26, compared to ~5.2x for FY25, with the variation reflecting changes in the debt servicing profile across periods. The debt payback ratio, measured as total borrowings to free cash flow from operations net of finance costs, stood at ~1.8x for the 9MFY26, compared to ~1.5x for FY25, reflecting a modest increase driven by the first-time appearance of a PKR ~68 million current maturity of long-term borrowing during the period (FY25: nil), which shifted the debt profile from short-term revolving facilities toward a long-term structure. The overall coverage profile nonetheless demonstrates improved debt-servicing capacity, supported by lower average borrowing costs and stable operating cash generation.

Total borrowings as of 9MFY26 stood at ~PKR 68mln (FY25: ~PKR 30mln), reflecting a modest level of institutional financial sector borrowing. The leverage ratio, measured as total borrowings to total capital, was ~24.5% as of 9MFY26 against ~18.7% as of FY25; this includes related-party liabilities of ~PKR 794mln within the capital structure context, which represent sponsor-sourced funding rather than external institutional debt. Excluding related-party liabilities, institutional borrowings are minimal, confirming that the firm's capital structure remains predominantly equity-funded with recourse to sponsor-provided non-funded facilities for import letter-of-credit purposes. Shareholders' equity as of 9MFY26 stood at ~PKR 2,651mln, reflecting an increase from ~PKR 2,339mln as of FY25, driven by retained profit accumulation. Equity quality is supported by retained earnings rather than revaluation surplus. Non-current liabilities are nil across all reported periods, indicating no long-term external debt obligations. The firm's financial flexibility is supported by its low institutional borrowing quantum, the availability of sponsor capital injections as a demonstrated source of contingency funding, and the capacity to moderate working capital investment as a lever for near-term liquidity management.