Yunus Textile Mills Limited ("YTML" or "the Company") is a public unlisted Company, limited by shares incorporated in Pakistan on April 17, 2007, under the repealed Companies Ordinance, 1984, now Companies Act, 2017.

Yunus Brother Group (YBG), established in 1962 as a trading house, has evolved into one of Pakistan’s most prominent and diversified business conglomerates. Over the decades, YBG has expanded its footprint across a wide array of industries, reflecting its strategic vision and commitment to sustainable growth. The group has a strong presence in textile domain and has ventured into multiple other sectors over the years, such as building materials, real estate, power generation, chemicals, pharmaceuticals, fast-moving consumer goods (FMCG), and the automotive sector. YBG is also recognized for its philanthropic initiatives, actively contributing to healthcare, education, and community development across the country.

YTML is recognized as the flagship Company of the YBG (Yunus Brother Group), specializing in the manufacturing and export of knitted, woven, and stitched fabrics, as well as various textile articles. The Company operates through a robust infrastructure consisting of nine production units, each playing a key role in the textile manufacturing process. These units are involved in every major stage, including spinning (Units VI and IX), weaving (Units I, and VII), processing (Unit I), and stitching (Units I, II, III, and VII), spread across multiple locations. This integrated setup allows the Company to maintain strict quality control at every step, ensuring consistency and efficiency in its operations. The registered office of the Company is located at H-23/1, Landhi Industrial Area, Karachi.

YTML is a wholly-owned subsidiary of a large business conglomerate, YB Holdings (Private) Limited owned by the Tabba family.

The Company’s entire ownership stake is held by the sponsors through YB Holdings (Private). Limited, ensuring strong leadership and strategic continuity. Key roles are clearly defined among family members, reflecting the presence of a formal succession plan that enhances operational stability. Looking ahead, the Company’s ownership structure is expected to remain stable in the foreseeable future, supporting its long-term growth and sustainability.

YB Group’s journey from its origins as a trading house in 1962 to becoming one of Pakistan’s largest exporters of home textile products is a testament to the vision and entrepreneurial leadership of the Tabba family. Over the decades, the Group has not only achieved a considerable presence in the textile sector but has also strategically diversified its business portfolio. This evolution reflects a forward-thinking approach, with successful expansion into other key industries such as power generation, the automobile, and the communication sectors.

The financial strength of YTML emerges from its remarkable presence in the local and international domain with five operational subsidiaries namely (i) Lucy Investments B .V. - Netherlands, (ii) Yunus USA, Inc. (Royale Linens, Inc.), (iii) Future Home - France, (iv) Lucky Foods (Private) Limited, and (v) Yunus Textile Mills UK Limited. In FY24, the Company exhibited a strong financial performance, securing a consolidated topline of PKR 78.2bln and net profitability of PKR 22.7bln.

The eight-member board comprises seven male directors and one female director. The board composition includes four non-executive directors, two independent directors and two executive directors. YTML has adopted the best corporate governance practices depicting the essence of a sound governance framework.

Mr. Muhammad Ali Tabba, Chairman of YB Group, possesses over 30 years of experience and serves as Vice Chairman of Lucky Core Industries Limited. Mr. Muhammad Sohail Tabba holds a directorship position at Lucky Cement and Lucky Motor Corporation Limited. Mr. Imran Yunus Tabba and Mr. Jawed Yunus Tabba serve as the key decision-makers at Lucky Textile Mills Limited. Ms. Zulekha Tabba holds a master’s degree from the London School of Economics. Mr. Khaldoon Bin Latif, a LUMS graduate with 15 years of experience in capital markets, previously served as the CEO of KASB Funds Limited. Mr. Saleem Zamindar, who holds an MBA from Durham University, is a director at Sindh Insurance Limited.

The Company has two key board committees in place: the Audit Committee and the Human Resources (HR) Committee. Its commitment to corporate governance is further reflected through regular meetings of the Board of Directors (BoD), where discussions focus on operations, performance, and progress toward strategic objectives. In FY24, five board meetings were held, with strong attendance from all members. Draft minutes were formally documented for each meeting, underscoring the Board’s active involvement and dedication to transparency.

To uphold high standards of transparency, Yousuf Adil Chartered Accountants have been appointed as the external auditors of the Company. They expressed an unqualified opinion on the financial statements of the Company for the period ended June 30th, 2024. The Company has an in-house internal audit department, led by Mr. Junaid Shekha, a fellow Chartered Accountant, which reports directly to the Board Audit Committee.

The Company maintains a well-structured organizational framework, characterized by distinct departments responsible for core functions, namely: (i) Finance & Accounts, (ii) Marketing, (iii) Technical Production, (iv) Information Technology, (v) Human Resources, and (vi) Procurement. Each department is overseen by a dedicated management team reporting directly to the COO and all Heads of Departments (HODs).

The CEO, Mr. Muhammad Hassan Tabba graduated from Bentley University in Business & Finance. He plays a pivotal role in developing corporate strategies for YTML and holds a directorship position on the board of the Aziz Tabba Foundation. The COO, Mr. Mohammad Nisar Palla graduated from San Jose State University, CA and possesses over ~3 decades of diversified experience. The CFO, Mr. Altaf Hussain Makna has been associated with the Company since 2011. He is a fellow Chartered Accountant.

The Company has three formal management committees in place—the Steering Committee, the Succession Planning Committee, and the Human Resources (HR) Committee—each playing a vital role in guiding strategic and operational matters. Regular meetings, chaired by the CEO, are held to ensure smooth day-to-day operations, review progress on key initiatives, address follow-up actions, and resolve any emerging issues proactively. 

The Company has developed an in-house Oracle application to provide an integrated, seamless experience that enhances operational efficiency, reduces costs, and drives business growth with its comprehensive features and user-friendly interface. The Company's daily and monthly MIS reports include comprehensive performance data for all segments, which is reviewed by the senior management.

The Company has earned a wide range of internationally recognized certifications, reflecting its commitment to quality, sustainability, and responsible manufacturing. These include OEKO-TEX® Standard 100, which ensures products are free from harmful substances; OEKO-TEX® STeP, certifying sustainable and socially responsible production; ISO 9001 for robust quality management systems; Cradle to Cradle Certified® Silver, which assesses product safety and environmental impact; and the Go Green Office certification for eco-friendly workplace practices. These certifications are supported by stringent internal quality assurance procedures—such as raw material inspections, in-process controls, and final product testing, indicative of a strong control environment.

The textile exports of the country reached USD 16.7bln in FY24, a slight increase from USD 16.5bln in the previous year, reflecting a growth of 0.93% YoY. The highest contribution came from the composite and garments segment at USD 9.1bln, followed by the weaving segment at USD 6.5bln and the spinning segment at USD 1.0bln. During 8MFY25, the textile exports stood at USD 12.2bln. Pakistan's exports to the USA were USD 4.02bln in FY24 and USD 2.83bln in 8MFY25. Recently, the USA imposed a 29.0% tariff on Pakistani exports. The subsequent impact on the broader dynamics of Pakistan's textile industry, as well as the adaptability of textile manufacturers, will be assessed in due course.

YTML is a leading home textile exporter of the country with a healthy market share in the export of textile made-ups. The Company enjoys a strong franchise and is recognized as a quality product manufacturer.

The Company's revenue base remains predominantly export-driven, with exports accounting for approximately 96% of total revenue. YTML achieved a remarkable 3-year CAGR of 14.7% from June 2022 to June 2024 and reached PKR 74.6bln (FY23: PKR 66.9bln). The 11.5% year-over-year growth was primarily driven by improved pricing of home textile products in the international market, along with a major increase in volumes for home textile and grey fabric segments, despite a relatively stable exchange rate environment. Local sales continue to contribute minimally to overall revenue. The Company’s primary export destinations include the USA, Europe, the UK, and other regions. Among these, the USA remains the largest export market, accounting for a significant portion of revenue, indicating a degree of geographic concentration risk. Nevertheless, the Company’s long-standing relationships with top-tier international clients such as Target, Sainsbury's, Carrefour, and Kohl’s etc, provide comfort. The imposition of reciprocal tariffs by the USA presents a substantial challenge and is expected to negatively impact business volumes. However, the management anticipates a notable potential growth in exports in contrast with the other countries that currently impose higher tariffs than those applicable to Pakistan. While the immediate impact is expected to be limited, the full material effect is likely to unfold in the coming quarters.

The Company's gross profit margin (FY24: 27.8%; FY23: 30.8%) surpassed its industry peers in core profitability amidst escalated energy costs and expensive raw material procurement. A considerable portion of dividend income (FY24: PKR 4.0bln; FY23: PKR 3.2bln) has bolstered the profitability matrix. Due to the payment of short-term borrowings (STBs), the finance cost-to-sales ratio inched down (FY24: 0.8%; FY23: 1.9%). Correspondingly, the Company's bottom line portrayed a sizeable improvement (FY24: PKR 16.0bln; FY23: PKR 14.0bln).

To manage energy cost risks, the Company has already installed ~33.85 megawatt of renewable energy capacity, consisting of a solar power plant and a wind turbine. It has also installed a ~9.60 megawatt wind turbine which is currently opeartional. YTML has surpassed its projected topline and profitability in monetary terms for FY24.

The Company's working capital requirements are a function of its inventory days and trade receivable days, for which it solely relies on internally generated cash flows. During FY24, the net working capital cycle was reported at 123 days (FY23: 130 days), due to a reduction in the inventory cycle to 110 days (FY23: 115 days). The Company holds a high borrowing capacity as evidenced by the short-term trade leverage of 89.6% (FY23: 77.7%). The Company has maintained a strong liquidity profile, with a current ratio of 2.9x, indicating a strong ability to meet its short-term obligations. 

Robust growth in the PBT has supplemented the free cash flows from operations (FCFO) reported at PKR 17.4bln (FY23: PKR 15.7bln). This improvement in FCFO, coupled with a dilution in finance cost, has beefed up the Company's EBITDA/Finance cost (FY24: 34.3x; FY23: 13.4x) and core operating coverage (FY24: 5.8x; FY23: 4.7x), indicating the prudent financial management. However, the Company’s debt payback period further improved and stood at 0.9x (FY23: 1.2x).

The Company has maintained a favourable capital structure. The Company's debt profile is a blend of temporary economic refinance facility (TERF) and long-term finance facility (LTFF). The management strategically offloaded its STBs, which led to a decline in total debt (FY24: PKR 15.2bln; FY23: PKR 20.6bln). Despite the dividend payout of PKR 999mln, the Company's equity base enhanced to PKR 86.6bln (FY23: PKR 71.6bln), primarily driven by the plowback of healthy retained earnings from the prior years.