Jadeed Oil Extraction (Pvt.) Limited ('Jadeed Oil' or 'the Company') was incorporated in Nov-17 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 set up its first feed mill with a manufacturing capacity of 60MT/hr. In 2016, another feed mill was setup with a capacity of 120MT/hr. The Group is among the few players in the industry that imports and breeds grandparent poultry stock (Ross - 308). The Group imports Ross – 308 from Aviagen, a USA based Company. In 2017, the Group setup its edible oil mill, as its backward integration plan. Lately, the Group increased its combined feed manufacturing capacity to 240MT/hr and merged Jadeed Farms and Jadeed GP Farms with and into Jadeed Feeds

Jadeed Oil is primarily engaged in the process of seed filtering and crushing, oil extraction, and refining by mechanical and chemical processes. The Company primarily sells semi-refined oil and meal extracted from Soybean, rape and sunflower seed. Soap and Hull extracted as a by-product in the production process is also sold by the Company. As of FY24, the Company has a seed crushing capacity of 180,000 MT/ annum and a refining capacity of 36,500 MT/annum. Capacity utilization for seed crushing/solvent extraction posted a decreasing trend and stood at ~43.4% (FY23: ~56%) due to a low volume supply of soybean oil seed. The Company’s extraction facility is located in Khanewal. While, the head office is located in Satellite Town, Rawalpindi.

The Company is owned by the family of the late Mr. Jan Mohammad Javaid. The majority ownership lies with Jadeed Feeds (~48%) and Mr. Jan Mohammad Javaid son's 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 (~12%) and Ms. Fariha Javaid (~12%), and his wife, Mrs. Shazia Javaid (~3%).

A family-concentrated ownership structure brings stability with effective succession planning in place. With the demise of the previous sponsor, Mr. Jan Mohammad Javaid, the succession planning was evident with the ownership 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 equity foundation of around PKR 15 billion as of FY24. During the same year, the Group achieved a turnover of  PKR 104 billion, reflecting strong business performance and market presence. Additionally, the Group reported a profit after 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 has lately 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 Session 2009-2013. Moreover, completed Master degree in Master of Animal Sciences from The University of Melbourne Victoria, Australia Session 2014-2016. Mr. Muhammad Safwan Javaid also have above a decade of experience and are actively managing operations. He did graduation BSc Hons in Poultry Sciences from University of Agriculture Faisalabad Session 2008-2012. He got Master degree in MSc International Financial Management from The Queen Mary 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 Oil'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 a crucial 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 and convenes 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 the effective implementation of the Company’s policies and procedures. This function plays a key role in evaluating internal controls, identifying areas for improvement, and ensuring compliance with regulatory requirements.

Edible oil is one of the highest imported commodities in Pakistan. During the year, 2.717 million tonnes  of edible oil (including oil extracted from imported oilseed) of value Rs 794 billion was imported. Local edible oil production remains at 0.471 million tonnes. In line with population growth, edible oil demand  is forecast to grow about 5% and palm oil imports grew accordingly, reaching 3.6mln tons in FY24. The price of Soybean oilseed stood at 479 USD/MT in Jun-24 as compared to 591 USD/MT in the comparative year, showcasing a decrease of ~18%. On the other hand, the price of palm oil stood at  873 USD/MT in Jun-24 and 816 USD/MT in Jun-23, which is forecasted to ease further. Comparatively reductions in selling prices have impacted the revenues substantially for the refineries. Due to the rise in input costs, especially raw material cost, many companies have experienced a reduction in their profit margins and faced working capital shortages. With expectations for better cottonseed production, Total oilseed production in 2024/25 is projected to decrease marginally to 3.43 million tons, due to an expected minor decline in cottonseed production, and no growth in rapeseed and sunflower seed output. The industry's future outlook is developing due to price volatility and PKR depreciation.

Jadeed Oil has a stable market share of ~2% in terms of revenue, and ~2.1% in terms of production. However, the Group is among the largest poultry players of the Pakistan

The Company mainly generates revenue by selling Soybean meal, Rape seed meal, Semi-Refined Soybean Oil, and Soybean Hull. Around ~58.1% of the Company’s total revenue is generated by selling Soybean Meal to a Group Company, ‘Jadeed Feeds’. The Company remained the same and reported at ~PKR 18.7bln during FY24 (FY23: ~PKR 18.8bln). The slight decline in revenue was primarily due to lower sales volumes compared to the previous year. However, this reduction in volume was offset to some extent by steady demand, which helped maintain the overall revenue level. Looking ahead, the Company’s revenue is expected to grow due to rising edible oil prices, which are anticipated to strengthen the revenue base. As global demand for edible oil increases, the company stands to benefit from higher price points, positioning it for growth in the upcoming periods.

During FY24, the Company’s gross margin posted a decrease and stood at ~5.1% (FY23: ~6.6%). This decrease was primarily due to higher input costs, which significantly rose compared to the previous year. Additionally, the company’s decision to procure local oil and meals contributed to an increase in procurement costs, further squeezing margins. On the operational level, the Company’s margins witnessed a similar trend (FY24: ~ 4.4%, FY23: ~ 6.1%). Net margins followed a similar trend and stood at ~0.3% during FY24 (FY23: ~0.4%) due to the trickle-down effect indicating a squeeze in overall profitability. The company will need to either control costs more effectively or drive revenue growth through volume or pricing adjustments to stabilize net margins in the future.

The Group has started a commercial venture for the construction of 35 storage facility. Land has been acquired and partial sale and partial rental business model would be followed.

Gross working capital days remained significantly low at 1 day from 2 days in FY24, driven by a sharp decrease in inventory holding days. Raw material holding days dropped to 59 days from 124 days, while finished goods days halved to 2 days from 10 days, reflecting enhanced inventory controls and precise demand forecasting. Trade receivables days stood at 19 days (FY24: Nil), showcasing efficient credit controls and timely collections. On the other hand, trade payables days clocked at 1 day (FY24: 2 days), suggesting improved supplier credit terms that supported liquidity. Consequently, net working capital days fell to 79 days from 133 days, substantially improving the Company’s liquidity position. Despite these operational efficiencies, leverage ratios rose, with short-term trade leverage and total leverage reaching 69.8% and 66.4%, respectively, up from 19% in FY23.

The Company’s stability in coverage metrics during FY24, reflecting better financial risk management. The EBITDA-to-Finance Cost ratio remains at 0.9x (FY23: 0.9x), indicating stronger earnings relative to interest obligations. Free cash flows decreased and stood at ~PKR 681mln during FY24 (FY23: ~PKR 928mln) due to a decrease in net income. However, finance cost decreased as a result of reduced interest rates and stood at PKR 755mln (FY23: PKR 1,082mln)

The debt of the Company comprises ~97% short-term loan - running finance - availed for the purpose of working capital and ~3% lease liability. The total debt of the Company stood at ~PKR 868mln as of FY24 (FY23: ~PKR 3,620mln) against an equity base of ~PKR 3,309mln (FY23: ~PKR 3,251mln) due to improved unappropriated profits. As a result, debt to debt plus equity ratio remains low leveraged and stood at ~20.8% as of FY24 (FY23: ~52.7%).