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 grand parent 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.

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 432,000MT per annum. Utilization levels are posted at ~42% during FY25. Breeding farms, located across Pakistan, are fully utilized have a utilization capacity of ~67%. The Company's GP hatcheries, located in Kot Momin, have a utilization level of ~51% during FY25, while PS hatcheries reported a utilization level of ~57% in FY25.

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 51 billion and a solid equity foundation of around PKR 16 billion as of FY25. During the same year, the Group achieved a turnover of PKR 91 billion, reflecting strong business performance and market presence. Additionally, the Group reported a profit after tax (PAT) of around PKR 3 billion, underscoring its effective operational strategies and sound financial management. As of 1QFY26, total assets are recorded at PKR 47.7bln and PAT of PKR 1 bln.

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 andare 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 f inancial statements of the Company for year ended Jun-25. 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 poultry feed industry in Pakistan is characterized by a competitive market structure consisting of approximately 215 feed mills. The sector is relatively unorganized, with sales heavily dependent on the poultry and livestock industries and primarily conducted through household premises or shops. Key industry dynamics are driven by the availability and pricing of its two primary raw materials: maize, for which Pakistan is self-sufficient , and soybean meal, which is largely dependent on imported soybean seeds. This reliance on imports makes the sector vulnerable to international price fluctuations and exchange rate volatility. Operationally, the industry faces significant credit risk, as approximately 90% of sales to controlled sheds are made on credit. While the sector's turnover declined by 7.7% in FY24 due to lower demand from the poultry segment , net margins recently improved to 3.5% as production costs eased.

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).

Jadeed Feeds reported a total revenue of PKR 82,322 million for FY25, reflecting a marginal year-on-year decline of 3.9% from the PKR 85,640 million recorded in FY24. This contraction in the topline is primarily attributed to the cessation of egg export operations, which previously bolstered international sales volumes. The company’s revenue stream remains concentrated across two core segments: Day-Old Chicks (DOC), which contributed a majority share of 55%, and Poultry Feed, accounting for the remaining 45%. Despite the slight annual dip, the 1QFY26 revenue of PKR 21,878 million suggests a stabilized quarterly run rate; however, the shift toward a purely domestic sales mix may pressure margins if local demand fluctuates or if rising input costs cannot be fully passed through to consumers. This performance underscores a strategic reliance on the DOC segment to drive growth while highlighting the need to diversify revenue streams or resume export activities to offset the current stagnant growth in the poultry feed market.

Jadeed Feeds demonstrated a notable strengthening of its bottom line in FY25, as gross margins expanded to 11.5% from 10.8% in the preceding year. This margin enhancement was primarily fueled by a 5% reduction in Cost of Goods Sold (COGS)—largely due to softening raw material prices—which more than offset the marginal decline in top-line revenue. This operational efficiency, coupled with a disciplined approach to debt, led to a significant surge in the net profit margin to 3.9% (up from 2.4% in FY24). A pivotal driver of this profitability was the 65% reduction in finance costs, which plummeted from PKR 2,746 million to PKR 955 million, suggesting either a strategic deleveraging of the balance sheet or a favorable shift in the interest rate environment. While elevated administrative expenses exerted some upward pressure on operating overheads, the substantial savings in interest payments and optimized procurement strategies effectively fortified the company’s net earnings, positioning it for greater financial resilience in 1QFY26, net profit margin reporting at 6.2%.

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

Jadeed Feeds witnessed a significant transformation in its cash conversion cycle during FY25, characterized by a strategic buildup of inventory and a major shift in its trade credit position. Inventory turnover slowed as total inventory days climbed from 37 to 51 days, driven by a deliberate increase in raw material holdings (from 17 to 26 days) and a moderate rise in finished goods, which may indicate a strategic stocking of inputs to hedge against future price volatility. While the company optimized its liquidity through aggressive receivable management—slashing debtor days from 6 to a mere 2 days—the most impactful shift occurred in its procurement strategy, where payable days nearly doubled from 30 to 58 days. This substantial extension in creditor payments, likely reflecting stronger bargaining power or revised supplier terms, successfully offset the higher inventory carrying costs. Consequently, the company transitioned to a negative net working capital cycle of -4 days from a positive 14 days in FY24; this negative cycle is a highly favorable indicator of operational liquidity, as it implies the business is effectively financing its inventory growth through supplier credit rather than external debt.

Jadeed Feeds demonstrated a robust strengthening of its liquidity profile in FY25, with Free Cash Flow from Operations (FCFO) growing to PKR 6,947 million from PKR 5,553 million in FY24, underscoring a high quality of earnings and improved cash conversion. This upward trajectory was significantly bolstered by a disciplined reduction in finance costs, which plummeted by approximately 65%, driving the FCFO-to-finance cost ratio to a healthy 7.3x and the EBITDA interest coverage ratio to a stellar 10.0x. While the total coverage ratio saw a technical dip to 0.6x—likely due to the timing of scheduled debt repayments or a shift toward shorter-term financing structures—the broader metrics indicate a vastly superior capacity to service debt compared to the previous year. This enhanced solvency, fueled by the transition to a negative working capital cycle and lower interest burdens, provides the company with significant financial "dry powder" to pursue capital expenditures or organic growth initiatives without compromising its credit stability.

The Company's capital structure experienced a significant expansion in FY25, with total debt rising to PKR 13,862 million from PKR 7,754 million, primarily to fund working capital requirements as evidenced by a short-term running finance concentration of 85.9%. Despite this nominal increase in leverage, the company’s risk profile remains anchored by a growing equity base of PKR 13,205 million, bolstered by strong profit retention. While the gearing ratio (debt-to-debt-plus-equity) shifted to 51.2% from 39.4%, the company maintains a balanced capital mix; however, the heavy skew toward short-term instruments introduces heightened sensitivity to interest rate volatility and reinvestment risk. To optimize its balance sheet, the company should consider a strategic terming-out of its debt—converting high-cost short-term lines into long-term facilities—which would better align its maturity profile with long-term asset growth and insulate its cash flows from sudden shifts in the monetary environment, especially given the current strength of its interest coverage metrics.