Jadeed Feeds Industries (Pvt.) Limited (‘Jadeed Feeds’ or ‘the Company’) was incorporated in Jun-08 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 setup its first feed mill with a manufacturing capacity of 60MT/hr. In 2016, another feed mill was setup with a capacityof 120MT/hr. The Group is among the few players in the industry that imports and breeds grandparent poultrystock (Ross - 308). The Group imports Ross – 308 from Aviagen, a USA based Company. In 2017, the Group setup itsedible oil mill, as its backward integration plan. Lately, the Group increased its combined feed manufacturingcapacity to 240MT/hr and merged Jadeed Farms and Jadeed GP Farms with and into Jadeed Feeds.

The Company is primarily involved in manufacturing and selling variants of poultry feed, along with breeding grandparent stock (Ross -308) and selling poultry breeding stock and day-old chicks. The Company's feed mills have a combined capacity of 576,000MT per annum. Utilization levels posted a stable trend of ~49%. Breeding farms, located across Pakistan, are fully utilized. The Company's hatcheries, located in Kot Momin, have a utilization level of ~51% during FY24.

The Company is owned by the family of late Mr. Jan Mohammad Javaid. Majorly owned by his two sons, 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 and Ms. Fariha Javaid (~12% each) and his wife, Mrs. Shazia Javaid (~15%).

A family-concentrated ownership structure brings stability with effective succession planning in place. With thedemise of the previous sponsor, Mr. Jan Mohammad Javaid, the succession planning was evident with theownership 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 34 billion and a solid equityfoundation of around PKR 15 billion as of FY24. During the same year, the Group achieved a turnover of PKR 104billion, reflecting strong business performance and market presence. Additionally, the Group reported a profitafter tax (PAT) of around PKR 2 billion, underscoring its effective operational strategies and sound financial management.

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 haslately 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 Session2009-2013. Moreover, completed Master degree in Master of Animal Sciences from The University of MelbourneVictoria, Australia Session 2014-2016. Mr. Muhammad Safwan Javaid also have above a decade of experience andare actively managing operations. He did graduation BSc Hons in Poultry Sciences from University of AgricultureFaisalabad Session 2008-2012. He got Master degree in MSc International Financial Management from The QueenMary 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-24. 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 Feed'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 acrucial 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 andconvenes 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 theeffective implementation of the Company’s policies and procedures. This function plays a key role in evaluatinginternal controls, identifying areas for improvement, and ensuring compliance with regulatory requirements.

The Pakistan Poultry Association (PPA) highlights the substantial contribution of the poultry industry to Pakistan’s economy. The sector contributes approximately 1.3% to the country’s Gross Domestic Product (GDP) and provides direct and indirect employment to 1.5 million individuals. Annually, the industry produces 1.3 billion kilograms of poultry meat and over 18 billion eggs, serving as a crucial source of affordable protein for the nation’s population. In recent times, the poultry farming sector has encountered significant challenges due to escalating input costs, particularly for poultry feed. This trend is forcing many poultry farmers, especially those operating on a small scale, to contemplate the closure of their businesses. Such a development could have detrimental implications for both the livelihoods of farmers and the local economies reliant on the poultry industry.

Jadeed Feeds hold a market share of ~14% on revenue basis and ~5% on production basis. The Company is the only player in the industry that imports and breeds grandparent poultry stock (Ross - 308).

The Company sources its revenue by selling variants of poultry feed (~65%), followed by birds and day-old chicks (~34%) and egg setting income (~1%). Notably, the Company’s top 10 customers collectively generate around 5% of its total revenue, indicating a relatively diversified customer base. The Company's topline posted a growth of ~30% and reported at ~PKR 85bln during FY24 (FY23: ~PKR 65bln) owing to significant demand for soymeal and increased prices poultry product prices. T he sales have been consistently growing since the Company started its operations.

The Company’s gross margin remained stable, at ~10.8% in FY24, compared to 10.6% in FY23. This stability was largely due to the Company’s ability to manage the increased import costs of soybean seed, successfully passing on the rising raw material costs to customers in a timely manner. On the operational front, the Company’s operating margin followed a similar trend, standing at ~7.3% in FY24 ~ (7.4% in FY23). Net margins also demonstrated a comparable pattern, with a slight decrease to 2.4% in FY24, down from 2.5% in FY23. Despite the challenges posed by rising raw material costs, the Company has managed to maintain its profitability within a narrow margin, reflecting efficient cost management and strategic pricing.

The Company aims to optimize utilization of its production capacity along with keeping costs under control, going forward.

The Company’s working capital management remains centered around its inventory and payables. In an effort to optimize raw material purchases and maintain sufficient stock levels, the Company has significantly improved its inventory management, with average inventory days reducing to 37 days in FY24 (FY23: 45 days). Efficient management of trade receivables is reflected in the average debtor days, which improved to 6 days (FY23: 15 days). Payable days standing at 30 days in FY24 (FY23: 21 days). As a result, net working capital days improved notably to 14 days during FY24 (FY23: 38 days), highlighting better overall efficiency in managing cash flows.

The Company’s cash flows have been positively influenced by an incremental rise in free cash flow from operations. Free cash flow during FY24 stood at PKR 7,290mln (FY23: PKR 6,396mln). Despite an increase in finance costs, which slightly rose to PKR 2,734mln in FY24 (FY23: PKR 2,320mln), the Company maintained a consistent interest coverage ratio, which recorded at 2.7x in FY24 (FY23: 2.8x), driven by the rise in free cash flow. Total coverage ratios remained stable during the period at 2.0x, reflecting consistent management of short-term borrowings. This stability in coverage ratios, coupled with the increased free cash flow, underscores the Company’s ability to generate sufficient cash to meet both operational and financing obligations.

The debt of the Company comprises ~65% short-term loan - running finance - availed for the purpose of working capital and ~35% long term financing for long term facilities. The total debt of the Company stood at ~PKR 7,754mln as of FY24 (FY23: ~PKR 13,401mln) against an equity base of ~PKR 11,937mln (FY23: ~PKR 9,908mln) due to improved profit retentions. As a result, the debt to debt plus equity ratio remains moderate and stood at ~40% as of FY24 (FY23: ~57.5%). Overall, the stable leverage ratio is a positive indicator of the Company’s disciplined approach to debt management. However, the reliance on short-term debt requires careful monitoring to ensure liquidity remains sufficient to cover short-term obligations. To strengthen its financial position, the Company could benefit from diversifying its debt structure by increasing the share of long-term financing, reducing refinancing risks and supporting long-term growth initiatives.