Olympia Chemicals Limited (the Company) was incorporated in Pakistan on January 01, 1995, as a public unlisted under the Companies Ordinance,1984 (now the Companies Act, 2017). The registered office of the Company is situated at 25-A Davis Road, Lahore, Pakistan, and manufacturing facilities are located at Unit (I) Warcha Tehsil Quaidabad, District Khushab Warcha, and Unit (II) 45-KM Multan Road, Tehsil Pattoki, District Kasur.

Initially, the Company started its operations with 120TPD of Soda Ash after that Company planned its expansion in different phases. In Phase I of expansion Company reached to 240 TPD, in second phase of expansion, production capacity was enhanced to 300TPD and in the third phase of expansion, the Company reached up to 750TPD. In the fourth phase of expansion, the Company has expanded its capacity by 250TPD and has a total capacity of 1000TPD which also includes a capacity of sodium bicarbonate with 160TPD. The Company is a pioneer in making refined sodium bicarbonate.

The Company is principally engaged in the manufacturing and marketing of alkaline chemicals, its by-products, and detergents. The Company's final products are i) Soda Ash (Dense Grade) ii) Soda Ash (Light grade) and iii) Refined Sodium Bicarbonate.

The Company is owned by the Monnoo family, its shareholding is divided among the family of Mr. Hamayun Monnoo (25%), Muhammad Shakil Monnoo and his family (36%), and Muhammad Khurshid Monnoo and his family (19.33%), and Muhammad Nasir Monnoo and his family (19.33%).

The operations of the Company are predominantly managed by Muhammad Shakil Monnoo, who has been an integral part of the organization since 1995. With nearly three decades of affiliation with the Company, Mr. Monnoo has established himself as a pivotal figure in driving its success and growth. A seasoned entrepreneur, he possesses an exceptional breadth of knowledge and expertise, acquired through years of hands-on experience in various industries. His diverse skill set and strategic acumen enable him to navigate complex business challenges effectively while capitalizing on emerging opportunities. Renowned for his leadership and vision, Mr. Monnoo continues to play a vital role in shaping the Company's future and maintaining its competitive edge in the market.

The owners of the Company possess decades of comprehensive experience in the chemicals industry, establishing themselves as leading figures with profound expertise and industry insights. Their dedication to excellence and innovation has enabled them to navigate complex challenges and capitalize on opportunities in this dynamic sector. A testament to their remarkable achievements is the Company's position as the second-largest manufacturer of Soda Ash products in Pakistan. This distinction highlights their commitment to producing high-quality, reliable products that meet the needs of both local and international markets. Through their vision and leadership, the Company continues to play a pivotal role in the growth and development of the chemicals industry, cementing its reputation as a trusted and influential contributor to the sector.

The group showcases a diverse and expansive business portfolio, with significant involvement in poultry, animal feeds, and frozen foods. This diversification highlights its strategic approach to tapping into multiple industries, reducing risks, and maximizing growth opportunities. Its financial foundation is widely regarded as robust, reflecting the group's ability to sustain operations, expand investments, and explore new ventures with confidence. Such financial strength underpins its long-term stability and its capacity to adapt to evolving market demands.

The board consists of nine members, each bringing a wealth of varied experiences to the table. Notably, all members are close family, reflecting a strong sense of unity and shared purpose within the group's leadership. However, the absence of independent directors introduces an opportunity for enhancement in governance and decision-making diversity. The board is presently led by its chairman, Muhammad Shakil Monnoo, whose leadership underscores the family's deep involvement in the organization's strategic direction. This structure could benefit from incorporating independent perspectives to strengthen its oversight and align with global best practices.

Muhammad Shakil Monnoo serves as the Chief Executive Officer, bringing over three decades of invaluable business expertise to the helm of the organization. His leadership reflects deep industry insight and strategic acumen. The other board members are highly qualified professionals, each boasting a wealth of experience in their respective fields. Together, they embody a diverse skill set and a broad spectrum of professional expertise, which significantly contributes to the group’s dynamic and adaptive approach to business operations.

During the IHFY25, the board convened twice, demonstrating their commitment to governance and strategic oversight, with the majority of members actively participating in the meetings. This reflects an organized and engaged leadership approach. In addition, the board has formed a management committee, known as the Plant Operational Review Committee. This committee consists of key figures responsible for the operational excellence of the plant, including the General Manager of the plant site, Manager of Mechanical & Maintenance, Manager of the Powerhouse, Manager of Production, and Manager of Administration. The establishment of this committee highlights the board's focus on operational efficiency and its proactive approach to addressing plant-specific challenges and ensuring seamless operations.

UHY Hassan Naeem & Co., Chartered Accountants (QCR rated and having an "A" category on SBP panel) are the external auditors of the Company. They gave an unqualified opinion on the Company’s financial statements for the year ended June 30, 2024.

The Company has implemented a meticulously organized management structure, ensuring efficiency and clarity in its operations. This structure is thoughtfully divided into functional departments, each with clearly defined responsibilities. Such an approach promotes accountability, streamlines decision-making, and enhances coordination among different departments. By delineating roles and responsibilities, the Company ensures that every team member understands their objectives, contributing to smoother workflows and effective management.

The Company boasts an exceptional team of seasoned professionals, each bringing a wealth of expertise and diverse perspectives to its operations. Leading this accomplished team is Mr. Masood Khaliq, the Chief Operating Officer, who has an impressive career spanning 54 years, showcasing his versatility and deep understanding of the industry. Mr. Irfan Majeed Chughtai, a Chartered Accountant with over 43 years of professional experience, lends his financial acumen and strategic insight to the company's endeavors. The remaining team members, all seasoned in their respective fields, contribute significantly under the structured guidance of departmental heads, the COO, and the Chief Financial Officer. This robust management framework underscores the Company’s commitment to excellence and effective leadership.

The Company has instituted a central management committee to ensure seamless coordination across its operations. As the apex decision-making body, this committee is composed of senior management, reflecting its pivotal role in steering the organization toward its strategic goals. The management committee convenes monthly under the leadership of the chairman to evaluate the Company's performance, address critical issues, and set the course for continued success. Supporting its efforts are key departments such as Purchase, Finance, and Credit, each responsible for managing and achieving their respective monthly targets. This structured approach underscores the Company's commitment to operational efficiency and strategic alignment.

The Company has integrated Microsoft Dynamics ERP into its operations, showcasing its commitment to leveraging advanced technology for effective information management. This sophisticated ERP system streamlines the generation of reports and ensures seamless information flow across all levels of the organization. One of the standout features of this system is its ability to produce customized Management Information System (MIS) and dashboard reports tailored specifically for the board and senior management. These reports provide insightful data that aid in strategic decision-making and operational oversight. Additionally, the ERP's robust functionalities enable the management to maintain stringent controls, enhancing the organization's efficiency, accountability, and governance standards.

The management has implemented a strong control environment within the Company supplemented by a robust quality control system for its financial reporting, planning & production processes. Additionally, Olympia chemicals have technical collaboration agreements with international firms to ensure that quality standards are adhered to.

The domestic soda ash market saw a ~4% decline to 590,000 tons in FY24, while total industry capacity stands at 910,000 tons. Major raw materials required for soda ash production include sodium chloride (salt), limestone, coal and ammonia. Soda Ash holds ~0.1% weightage in the chemicals segment on LSM. Soda Ash is an essential raw material used in the manufacturing of Glass, chemicals, detergents, and various industrial products. It is an anhydrous white powder or granular material that is available in two grades, light and dense. The demand for Soda Ash is closely linked with the performance of the construction/glass industries, for which soda ash is a raw material. Meanwhile, demand for sodium bicarbonate (food grade) has been strong due to significant demand from poultry, confectionary and etc. Currently almost 90% of soda ash demands met through local production and import portion currently at minimum. Going forward the industry is expected to receive benefiting from export of soda ash, as sufficient capacities are available to grab the opportunity.

The soda ash market in Pakistan is led by Lucky Core Industries ~60% share and Olympia Chemicals ~30% share with ~10% reliance on imports. Olympia Chemicals is the second largest player in the manufacturing of Soda Ash. A prominent, local business group has also got approval from the Special Economic Zone (SEZ) to set up a new soda ash manufacturing plant expected to come online within next two years. Though, barriers to the new entrants are considered strong as it requires huge capital investments.  Export potential in Soda Ash market is strong, offering opportunities for growth in international markets. 

During IHFY25, the Company's top-line increased by ~8.3% on YoY and stood at PKR ~11,856mln (FY24: 21,892mln). The Company's top line is well diversified as it is engaged in both B2B and B2C businesses (detergents). The largest product segment of the Company is the Soda Ash.

In IHFY25, the Company's gross margins reduced to ~17.3% (FY24: ~20%). The operating margin also reduced to ~15% (FY24: ~17%) due to cost-push inflation. The Company’s finance cost recorded in IHFY25 to PKR ~123mln (FY24: ~396mln). The Company’s net profit in IHFY25 clocked in at PKR ~1,252mln (FY24: ~2,626mln).

The Company deals in products which are used as essential raw materials of multiple industries, that ensures the business sustainability and growth. Management pursue a well define business plan, with realistic assumptions, and the actual performance is closely monitored by senior management on periodic basis.

In IHFY25, Company's inventory days reached to ~46 days (FY24: ~39 days). Meanwhile, in IHFY25, trade receivable days have reached to ~42 days (FY24: 41 days). Gross working capital days reached to ~88 days (FY24: ~81 days). The trade payable days during IHFY25 were clocked at ~36 days (FY24: ~34 days), Resultantly, the net working capital days clocked in at 53 days in IHFY25 (FY24: ~47 days).

The Company reported total cash flows from operations amounting to PKR 2,030mln during IHFY25, reflecting a decline compared to the PKR 3,272mln recorded in FY24. This indicates a reduction in cash generated from operational activities over the period. However, the Company's financial resilience is highlighted by its robust interest coverage ratio, which stood at an impressive ~16.5x in IHFY25, significantly higher than ~10.0x recorded in FY24. This improvement underscores the Company’s strengthened ability to cover its interest obligations, reflecting prudent financial management and operational efficiency.

The capital structure of the Company is moderately leveraged. During IHFY25, Company’s leveraging remained at ~17.5% (FY24: ~15.6%). While in IHFY25 short-term borrowing has been increased significantly and reached at ~24.5% (FY24: ~7.6%).