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 across key industrial zones, including Hub, Port Qasim, and Sundar. The Company’s operations are segmented into Food and Plastics divisions. For FY24, ISIL reported a production capacity of 298,356 MT (FY23: 219,932 MT) in the Food division and 63,000 MT (FY23: 63,000 MT) in the Plastics division, achieving actual outputs of 192,644 MT (FY23: 123,317 MT) and 35,580 MT (FY23: 34,121 MT), respectively. This translates to increased capacity utilization rates of approximately 65% (FY23: 66%) for Food and 56% (FY23: 54%) for Plastics, indicating room for potential production optimization in both divisions. The ISIL's strategic initiative to establish a 'Bisconni' subsidiary in Abu Dhabi, UAE, is a commendable step 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 ~0.85%, his wife, Ms. Almas Maqsood, holds ~29.83%, and their son, Mr. Hamid Maqsood Ismail, owns ~2.28%. Mr. Muhammad M. Ismail holds ~15.72%, his wife, Ms. Farzana Muhammad, owns ~2.08%, and their son, Mr. Ahmed Muhammad, has ~15.22% stake. Mr. Miftah Ismail owns ~31.03%, with his wife, Ms. Reema Ismail Ahmed, holding ~1.92%. The remaining minority ownership is held by associated entities, including Uniron Industries Private Limited ~0.66% and other stakeholders ~0.42%.

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. 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 and of the Bank of Khyber. 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 recently 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. Mr. Hamid Maqsood Ismail completed his graduation from Middlesex University (London, U.K), majoring in the field of Business Administration. As part of the new vision of the Company, Hamid Ismail has recently been assigned the role of Chief of Bisconni and Snackity 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. 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. 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, CEO Ismail Industries Ltd, and Candyland Confectionery (1993 – present) and CEO Astroplastics Pvt. Limited. 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 recently 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 serving as an independent director in the Company, done his graduation from Adamjee Science College, Karachi. He is a prominent industrialist and has played an outstanding role for strengthening the national economy especially for promoting industrialization in the country. He has served the business community in various capacities throughout his illustrious career as one of the leading representatives from the industrial sector. 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 sits on the board of Reliance Insurance Company Limited and the Trading Corporation of Pakistan (Private) Limited where she is also a member of its Audit & Risk Management Committee. She is also a member of the senate of the Pakistan Institute of Fashion & Design and chairs its Finance & Planning Committee. Ms. Tasneem has served ICAP as a member of its Auditing Standards & Ethics Committee since September 2014 and the CA Women’s Committee since September 2017. 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 serving as a non-executive director of the Company , did his B.S. in Economics from the University of Delaware, USA, in 1981. He joined Union Biscuits and looked, after Finance, Government Affairs and Import Departments prior to the setting up of Ismail Industries Limited. Currently, he is a Director of Ismail Industries Limited and of the Bank of Khyber where the Ismail family owns a significant share. 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 University (London, U.K), majoring in the field of Business Administration. As part of the new vision of the Company, Hamid Ismail has recently been assigned the role of Chief of Bisconni and Snackity 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 FY24, the Board of Directors convened 13 meetings, with the following attendance records: Mr. Muhammad M. Ismail attended 10 meetings, Mr. Maqsood Ismail Ahmed attended 12, Mr. Munsarim Saifullah attended all 13, Mr. Hamid Maqsood Ismail attended 10, Mr. Ahmed Muhammad attended 12, Mr. Muhammad Zubair Motiwala attended 10, and Ms. Tasneem Yusuf attended 11. Leave of absence was duly granted to Directors unable to attend certain meetings. The governance framework of Ismail Industries Limited was further enhanced by the Human Resource & Remuneration Committee (HR&RC), chaired by Mr. Muhammad Zubair Motiwala, 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, 2024. 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 who is a chartered accountant from ICAP, a fellow member of ACCA, and a CPA. 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 convenience food market is primarily dominated by domestically produced products. This industry is highly competitive, with products that are particularly sensitive to price fluctuations. A significant portion of the market is also held by unbranded products, which play a notable role. Production of food groups increased by 1.7 percent in FY24, compared to a contraction of 7.1 percent in FY23. Where the sugar confectionary market covering 20% exports of Prepared Foodstuffs; Beverages, Spirits, Vinegar and Tobacco, showed the growth of 13.9% during FY24 compared to 8.9% during FY23.The food sector in Pakistan is experiencing rapid growth, driven by population increase, inflation , urbanization, and evolving consumer lifestyles.

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, which is divided into two primary segments: Food and Plastics. The Company's primary revenue driver is the Food segment, which accounted for approximately 86% of total sales. The Food segment generated revenue of PKR 93bln during FY24 (FY23: PKR 74bln), indicating a substantial 26% year-over-year growth. The Plastics segment, contributing approximately 14% of total sales, generated revenue of PKR 15bln in FY24 (FY23: PKR 14bln), representing a more modest 3% increase. The Company’s food segment is further divides into the following products: Ismail Nutrition: In FY24, sales from this segment reached PKR 50bln, accounting for 54% of the Company’s total food segment revenue. According to management, all products are exported internationally according to predetermined destinations and quantities. Local sales, totaling PKR 8bln in FY24 (FY23: PKR 4bln), cover regions such as Afghanistan and Peshawar, where distribution is predetermined. Whereas export sales, covering ~93% of the exports of total food segment stood at PKR 42bln (FY23: PKR 34bln). This segment represents the largest share of the Company's total sales, accounting for 46% of combined revenue from both the food and plastics segments. Bisconni:In FY24, Bisconni achieved a robust growth of 22%, with total sales reaching PKR 20bln (FY23: PKR 17bln), representing 22% of the overall food segment. Of this, local sales contributed PKR 18bln (FY23: PKR 14bln), while export sales amounted to PKR 2.5bln (FY23: PKR 2.7bln).This growth is attributed to the launch of premium products, including Daydream, Mi Amor, Perfetto, Digestive, Chip Hop, and Divine. These higher-priced offerings increased Bisconni’s domestic sales, reflecting strong consumer demand for quality-driven products. Candyland: In FY24, Candyland experienced a 6% decline in growth, capturing approximately 16% of the total food segment, with total sales amounting to PKR 14.7bln (FY23: PKR 15bln). Out of this sale, local sales contributed PKR 13bln (FY23: PKR 14bln), while export sales totaled PKR 727mln (FY23: PKR 1.1bln). The decline in sales is attributed to changes in consumer preferences. To address this challenge, the company has launched new products tailored to align with shifting customer tastes and enhance its market appeal. Ghiza Flour: Operational since last year, the Ghiza Flour product line reported total sales of approximately PKR 6blnin FY24 (FY23: PKR 659mln), securing an estimated 7.2% share of the food segment. Export sales totaled PKR 7mln. Whereas, local sales stood at PKR 6.7bln (FY23: PKR 659mln). Overall, the Company is leveraging its diverse product portfolio to navigate challenges and capitalize on growth opportunities in both local and export markets. Snackcity: In FY24, Snackcity, showed the 70% decline in growth, covers the 0.7% of the total food segment, reported local sales of approximately PKR 692mln (FY23: PKR 2.2bln). Whereas, export sales reached PKR 7mln (FY23: PKR 63mln). The decline in local sales primarily reflects a reduction in Snackcitys’ production, which the Company attributes to a shortage of premium raw materials, specifically potatoes. To strengthen its position, the Company plans to introduce premium offerings within this product line, aiming to enhance competitiveness against established brands such as Lays. The 26% year-over-year growth in Ismail Industries Limited's food segment is a testament to its strong market position and effective strategies. This significant increase is attributed to factors such as strong consumer demand, effective marketing and branding, product innovation, improved operational efficiency, and strategic partnerships. These factors have collectively contributed to increased market share, enhanced financial performance, boosted investor confidence, and job creation. The plastic segment, covering 14% of the total sales, demonstrated growth of 3% in FY24, with total sales increasing to PKR 15bln from PKR 14bln in FY24. Out of total plastic segment, Astrofilms BOPET significantly contributed to this growth (FY24: PKR 12bln, FY23: PKR 11bln) , indicating strong international demand. Conversely, Astrofilms CPP generating revenue of PKR 2.6bln (FY23: PKR 2.9bln), suggesting a more domestically focused market presence. The overall increase in the plastic segment's sales reflects growth and the Company's ability to capitalize on both local and international markets, leveraging Astrofilms BOPET's strong export performance to drive revenue growth.

The Company delivered a robust operational performance in FY24, expanding its gross profit margin to approximately 22% from 21% in the previous year. This improvement was driven by a combination of strong sales volume growth and strategic price adjustments, demonstrating the Company's ability to navigate a challenging market environment and maintain profitability. The Company demonstrated a notable improvement in operational efficiency during FY24, despite a 25% increase in operating expenses, which rose to PKR 10bln from PKR 8bln in FY23. This enhanced efficiency is attributed to higher sales and more effective management of operating costs, enabling the Company to offset the expense growth. This progress is reflected in the expansion of operating profit margins, which improved to 13% in FY24 compared to 12% in FY23. The margin expansion underscores the Company’s ability to optimize its operations and maintain profitability in the face of rising expenses, signaling robust operational performance and strategic cost management. Despite improvements in operational performance, the Company’s net profit margins remained stable in FY24, with net profit recorded at PKR 6.1bln compared to PKR 6.3bln in FY23. While EBITDA increased, the stability in net profitability was primarily due to a significant rise in finance costs, which escalated to PKR 7bln in FY24 from PKR 4bln in FY23. Overall, the Company showcased resilience and operational efficiency, evidenced by improved EBITDA and operating margins. However, the impact of rising finance costs highlights the need for careful financial management to sustain profitability amid increasing borrowing expenses.

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”, in Abu Dhabi, U.A.E with a total investment of up to $10mln. The Company has made an equity investment of PKR 3,000,000,000 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.

IIL’S working capital requirements are a function of its inventory, trade receivables, and trade payables which are financed through short-term borrowings and FCFO.The Company's working capital management in FY24 showed mixed results. While gross working capital days increased to 77 days due to longer receivable cycles, net working capital days improved slightly to 55 days, indicating better payables management. This improvement provides some balance against the rise in gross working capital days, though the Company will benefit from close monitoring of its receivables and payable cycles to ensure sustainable liquidity. The average inventory days showed a slight improvement reducing to 37 days in FY24 from 38 days in FY23. This reflects efficient inventory management practices, potentially optimizing stock levels by optimizing their economic order quantity to meet demand while minimizing holding costs. The current ratio's improvement to 3.6x highlights a strong liquidity position, enhancing the Company's ability to meet short-term obligations. However, the increase in receivable days suggests a need for closer monitoring to maintain cash conversion efficiency and ensure sustainable liquidity. Overall, the Company demonstrated effective financial management but must continue to balance liquidity with strategic asset utilization for optimal growth.

The Company's coverage ratio decreased from 3.1x in FY23 to 2.3x in FY24. This suggests that the Company is spending more of its earnings to cover its finance costs. This is further supported by the decrease in total coverages from 1.6x to 0.7x. This decline highlights a reduced ability to cover all financial obligations from earnings before interest and taxes (EBIT). Finance cost directly linked to coverages has increased significantly from PKR 4bln in FY23 to PKR 7bln in FY24. This increased burden can strain the Company's ability to meet its financial obligations and indicates potentially higher interest rates and additional debt taken on during the fiscal year. Despite higher finance costs, the Company's FCFO grew by 23%, from PKR 13bln in FY23 to PKR 16bln in FY24. This growth in operational cash flow is a positive indicator of the Company's strong operational performance and cash generation capabilities. The Company's deteriorating financial health is reflected in the increased debt payback ratio from 3.1x to 4.0x. This signifies a significant slowdown in debt repayment, potentially stemming from increased debt. To sum up The Company has shown strong operational performance with a 23% increase in FCFO, but it is also facing higher finance costs and declining coverage ratios. The Company's ability to manage its debt and maintain financial stability will be crucial in the coming periods.

The Company exhibits a highly leveraged capital structure, with a leverage ratio consistently at 68% during FY24. While this reflects a slight improvement due to an increase in the equity base, the overall financial risk remains elevated. A 68% leverage ratio signifies heavy reliance on debt financing, which may heighten the Company's vulnerability to interest rate fluctuations and market uncertainties. Total borrowings increased from PKR 42bln in FY23 to PKR 50bln in FY24. This rising trend indicates an aggressive funding strategy, possibly to finance growth or manage working capital. Long-term Debt declined from PKR 23bln in FY23 to PKR 20bln in FY24, suggesting repayment of obligations. Short-term borrowings Reduced from PKR 15bln in FY23 to PKR 14bln in FY24 (~28% share in total borrowings), reflecting a focus on short-term debt reduction and liquidity management. Current Maturity of Long-term Debt increased significantly from PKR 4bln in FY23 to PKR 16bln in FY24, indicating a near-term cash flow pressure due to maturing obligations. The Company's ability to manage short-term obligations has improved, as evidenced by the reduction in short-term borrowings and the improved markup payable days. This suggests enhanced operational cash flows or better financial discipline in servicing interest obligations. The average markup spread over KIBOR increased to ~15% in FY24 (FY23: ~11%), indicating a higher cost of borrowing, which may stress profitability despite timely repayments. The absence of off-balance sheet exposure demonstrates prudent risk management and reduces potential contingent liabilities that could strain the financial position. Additionally, the issuance of PKR 5bln in Privately Placed Term Sukuk (PPSTS), following the redemption of PKR 4bln in previously issued PPSTS, raises total funding through such instruments to PKR 11bln. This issuance reflects the Company’s ability to access alternative funding sources, which could diversify its debt structure and optimize funding costs.