Olympia Chemicals Limited (Hereinafter referred to as '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 Company’s registered office is located at 25-A Davis Road, Lahore, Pakistan. It operates two manufacturing facilities: Unit I, situated in Warcha, Tehsil Quaidabad, District Khushab, and Unit II, located at 45-KM Multan Road, Tehsil Pattoki, District Kasur.

Initially, Olympia Chemicals Limited began its operations with a production capacity of 120 tons per day (TPD) of soda ash. The Company then planned a series of expansions in different phases. In Phase I, the capacity was increased to 240 TPD. During the second phase, production was further enhanced to 300 TPD, and in the third phase, the Company achieved a capacity of 750 TPD. In the fourth phase of expansion, an additional 250 TPD was added, bringing the total production capacity to 1,000 TPD. This capacity also includes the production of 160 TPD of sodium bicarbonate. Olympia Chemicals Limited is recognized as a pioneer in producing refined sodium bicarbonate in Pakistan.

Olympia Chemicals Limited is primarily engaged in the manufacturing and marketing of alkaline chemicals, their by-products, and detergents. The Company’s main products include Soda Ash (Dense Grade), Soda Ash (Light Grade), and Refined Sodium Bicarbonate. These operations are supported by strict quality control systems to ensure consistency and compliance with industry standards. Raw material procurement and supply chain management are integral to maintaining uninterrupted production, while engineering and maintenance teams oversee plant efficiency and reliability. Safety, health, and environmental practices are embedded in daily operations, focusing on workplace safety, waste management, and emissions control. Strategic operations emphasize sustainability, digital integration, and continuous improvement, enabling Olympia Chemicals Limited to remain competitive and efficient in its industry.

Olympia Chemicals Limited is a family-owned enterprise, with its ownership vested in the Monnoo family. The shareholding of the Company is distributed among four family groups. Mr. Hamayun Monnoo and his family hold 25% of the shares, reflecting a significant stake in the Company’s management and strategic direction. The largest portion of ownership, ~36%, belongs to Muhammad Shakil Monnoo and his family, giving them a leading role in the Company’s overall governance. Meanwhile, Muhammad Khurshid Monnoo and his family and Muhammad Nasir Monnoo and his family each hold ~19.33%, ensuring that both groups maintain equal representation in the ownership structure.

The operations of Olympia Chemicals Limited are predominantly overseen by Muhammad Shakil Monnoo, who has been an integral part of the organization since its inception in 1995. With nearly three decades of continuous association, he has emerged as a central figure in steering the Company’s growth and long-term success. A seasoned entrepreneur, Mr. Monnoo brings with him a wealth of knowledge and expertise, cultivated through years of hands-on experience across diverse industries. His broad skill set, combined with strategic foresight, enables him to address complex business challenges with confidence while simultaneously identifying and capitalizing on emerging opportunities. Renowned for his leadership qualities and visionary approach, Mr. Monnoo continues to play a decisive role in shaping the Company’s future direction. His ability to balance operational efficiency with innovation has been instrumental in maintaining Olympia Chemicals Limited’s competitive edge in the market. Under his guidance, the Company has not only expanded its production capacity but also strengthened its reputation as a pioneer in refined sodium bicarbonate manufacturing in Pakistan.

The Company’s owners have accumulated decades of experience in the chemicals industry, giving them a strong foundation of technical knowledge and practical insights. Over the years, they have developed a thorough understanding of industry trends, operational challenges, and customer requirements, which has guided the Company’s growth and stability. Their approach emphasizes consistent quality, innovation, and adaptability. This has enabled the Company to respond effectively to market fluctuations, regulatory changes, and technological advancements. By investing in modern manufacturing practices and research initiatives, the Company has maintained competitiveness and ensured that its products meet recognized standards. One of the Company’s notable achievements is its position as the second-largest manufacturer of Soda Ash products in Pakistan. This standing reflects both production capacity and the ability to deliver reliable products that serve diverse applications, including glass manufacturing, detergents, textiles, and other chemical processes. The Company’s output supports both domestic industries and international markets, contributing to wider economic activity. In addition to production, the Company places importance on sustainable practices, workforce development, and customer relationships. These priorities have helped establish its reputation as a dependable participant in the chemicals sector. By combining long-term experience with forward-looking strategies, the Company continues to play a role in the ongoing development of the industry.

The group maintains a broad and diversified business portfolio, with established operations in poultry, animal feeds, and frozen foods. This diversification reflects a deliberate strategy to engage with multiple industries, thereby reducing exposure to sector-specific risks and creating opportunities for sustained growth. Its financial position is recognized as strong, supported by consistent performance and prudent investment practices. This foundation enables the group to maintain ongoing operations, pursue expansion initiatives, and explore new ventures with confidence. The ability to allocate resources effectively across different business areas demonstrates resilience and adaptability in the face of changing market conditions. Its financial position is recognized as strong, supported by consistent performance and prudent investment practices. This foundation enables the group to maintain ongoing operations, pursue expansion initiatives, and explore new ventures with confidence. The ability to allocate resources effectively across different business areas demonstrates resilience and adaptability in the face of changing market conditions. Such financial strength contributes to the group’s long-term stability and enhances its capacity to respond to evolving consumer demands, regulatory requirements, and global industry trends. By balancing diversification with financial discipline, the group continues to reinforce its role as a reliable participant in multiple sectors of the economy.

The Company’s board is composed of nine members, each contributing varied professional and personal experiences to the leadership structure. A distinctive feature of this board is that all members are close family, which reflects a strong sense of unity, shared values, and collective purpose in guiding the organization’s strategic direction. This family-centered composition has fostered cohesion and alignment in decision-making. At present, the board is chaired by Muhammad Shakil Monnoo, whose leadership underscores the family’s active involvement in shaping the Company’s long-term vision. His role highlights the importance placed on continuity and the preservation of family-led governance traditions. However, the current structure also presents an opportunity for enhancement. The absence of independent directors limits the diversity of perspectives available to the board. Incorporating independent members could strengthen governance practices by introducing external viewpoints, improving oversight, and aligning the Company’s governance framework with internationally recognized best practices. By balancing family unity with independent perspectives, the board could further enhance transparency, accountability, and strategic adaptability, ensuring that its leadership remains resilient and responsive to evolving industry and regulatory demands.

Muhammad Shakil Monnoo serves as the Chief Executive Officer, bringing more than three decades of business experience to the organization. His leadership is informed by deep industry knowledge and strategic insight, which guide the Company’s overall direction and long-term planning. The remaining board members are accomplished professionals with diverse backgrounds and expertise across various fields. Collectively, they contribute a wide range of skills, perspectives, and practical knowledge that strengthen the board’s ability to address complex challenges and adapt to changing market conditions. This combination of seasoned leadership and varied professional experience supports a dynamic approach to governance and operations. It enables the group to balance continuity with adaptability, ensuring that decisions are informed by both long-standing industry understanding and fresh perspectives from different disciplines.

During the IHFY26, the board convened on two occasions, reflecting its commitment to governance and strategic oversight. Attendance was strong, with the majority of members actively participating, which demonstrates an organized and engaged leadership approach. These meetings provided a platform for reviewing performance, discussing key initiatives, and ensuring alignment with the Company’s long-term objectives. In addition to its formal sessions, the board has established a management committee known as the Plant Operational Review Committee. This committee is composed of senior operational leaders, including the General Manager of the plant site, the Manager of Mechanical & Maintenance, the Manager of the Powerhouse, the Manager of Production, and the Manager of Administration. The committee’s mandate is to oversee operational excellence, monitor plant performance, and address plant-specific challenges. By involving managers directly responsible for critical functions, the board ensures that operational issues are addressed promptly and effectively. This structure highlights a proactive approach to governance, with a clear emphasis on efficiency, accountability, and seamless plant operations.

The Company’s external audit is conducted by UHY Hassan Naeem & Co., Chartered Accountants, a firm that is QCR-rated and holds an “A” category position on the State Bank of Pakistan’s panel of auditors. This classification reflects the firm’s recognized standing and compliance with regulatory standards. For the financial year ended June 30, 2025, the auditors issued an unqualified opinion on the Company’s financial statements.

The Company has established a well-defined management structure designed to promote efficiency, clarity, and accountability across its operations. This framework is organized into functional departments, each with specific responsibilities and clearly delineated roles. Such an arrangement ensures that decision-making processes are streamlined, coordination between departments is strengthened, and accountability is maintained at every level. By assigning responsibilities in a structured manner, the Company enables employees to understand their objectives and contributions within the broader organizational context. This clarity supports smoother workflows, reduces duplication of effort, and enhances overall operational effectiveness. The management structure also facilitates better communication and collaboration among departments, allowing the Company to respond more effectively to challenges and adapt to evolving business needs. In doing so, it provides a foundation for consistent performance and supports the long-term sustainability of the organization.

The Company is supported by a team of experienced professionals who contribute diverse expertise and perspectives to its operations. At the forefront of this team is Mr. Masood Khaliq, the Chief Operating Officer, whose career spans more than five decades. His extensive background reflects versatility and a deep understanding of industry practices, providing continuity and strategic guidance to the organization’s operational framework. Complementing this leadership is Mr. Irfan Majeed Chughtai, a Chartered Accountant with over 44 years of professional experience. His financial expertise and strategic insight strengthen the Company’s financial management and planning, ensuring sound decision-making in areas critical to long-term sustainability. Other members of the management team, each seasoned in their respective fields, contribute meaningfully under the structured guidance of departmental heads, the COO, and the Chief Financial Officer. This collective experience supports effective coordination, accountability, and adaptability across the Company’s operations. The management framework, built on clear leadership roles and professional expertise, reflects the Company’s emphasis on operational discipline and informed decision-making. It provides a foundation for consistent performance and reinforces the organization’s ability to respond to evolving industry demands.

The Company has established a central management committee to ensure effective coordination across its operations. Serving as the apex decision-making body, the committee is composed of senior management representatives, underscoring its pivotal role in guiding the organization toward its strategic objectives. The committee convenes on a monthly basis under the leadership of the chairman, providing a structured forum to evaluate performance, address critical operational issues, and set priorities for the coming period. These regular meetings reinforce accountability and ensure that strategic decisions are closely aligned with the Company’s long-term goals. Supporting the committee’s work are key functional departments, including Purchase, Finance, and Credit, each tasked with achieving defined monthly targets. This integration of departmental responsibilities into the committee’s oversight framework strengthens operational discipline and ensures that performance objectives are consistently monitored. By combining strategic oversight with departmental accountability, the management committee provides a mechanism for maintaining operational efficiency, enhancing coordination, and ensuring that the Company remains responsive to evolving business demands.

The Company has integrated Microsoft Dynamics ERP into its operations, reflecting its commitment to utilizing advanced technology for effective information management. This enterprise resource planning system provides a centralized platform that streamlines reporting processes and ensures the smooth flow of information across all levels of the organization. A key feature of the ERP is its ability to generate customized Management Information System (MIS) and dashboard reports tailored to the needs of the board and senior management. These reports deliver timely and relevant data, supporting informed decision-making and enhancing oversight of both strategic and operational matters. Beyond reporting, the ERP’s robust functionalities strengthen internal controls and improve accountability. By standardizing processes and providing real-time visibility into operations, the system enhances efficiency and supports governance standards. This integration of technology into management practices enables the Company to maintain operational discipline while adapting to evolving business requirements.

The Company has established a strong control environment, supported by a robust internal control and quality assurance framework, covering its financial reporting, business planning, and production processes. These controls are designed to ensure accuracy, reliability, and timeliness of information, while promoting operational efficiency and compliance with internal policies and regulatory requirements. The financial reporting and planning functions are subject to structured review and oversight mechanisms, enabling effective monitoring of performance against defined targets and early identification of variances. Similarly, the production processes are governed by well‑defined standard operating procedures (SOPs) and quality checks to maintain consistency, efficiency, and product reliability. In addition, Olympia Chemicals has entered into technical collaboration agreements with internationally recognized firms, which provide access to advanced technologies, best practices, and industry expertise. These collaborations play a key role in ensuring that international quality standards are consistently adhered to, enhancing product quality, process optimization, and overall competitiveness in both domestic and export markets. Collectively, the Company’s strong control environment, disciplined internal processes, and international technical partnerships support effective risk management, operational resilience, and sustainable long‑term performance.

During the period under review, the domestic Soda Ash market remained under stress, reflecting weak demand conditions and an adverse macroeconomic environment. Domestic sales declined by ~11% compared to the same period last year (SPLY), mainly due to subdued downstream demand amid reduced purchasing power and lower industrial activity. Export sales declined by ~36% year‑on‑year, as weakening global commodity prices compressed margins and curtailed export volumes. In addition to demand‑side pressures, dumped imports—particularly from Turkey and Kenya—intensified competitive challenges, negatively impacting domestic manufacturers’ pricing power and sales volumes. In response, anti‑dumping duties were imposed in January 2026 on soda ash imports from Turkey (ranging from 3.49% to 5.58%) and Kenya (12.54%), following a preliminary determination that such imports had caused material injury to the local industry. These duties, initially imposed for four months, are expected to provide temporary relief and structural support to domestic producers by restoring pricing discipline and reducing unfair competition. Despite these regulatory measures, the domestic economic environment remained challenging, characterized by high inflation, tight monetary conditions, and weak construction‑sector activity. Consequently, the Soda Ash industry continued to operate below optimal capacity utilization levels. In FY25, total domestic Soda Ash demand declined by around 4% to 590,000 tons, while installed industry capacity stands at 910,000 tons, indicating a sizeable capacity overhang. Soda Ash production depends on key raw materials such as sodium chloride (salt), limestone, coal, and ammonia, exposing producers to energy‑ and input‑cost volatility. Within Pakistan’s Large‑Scale Manufacturing (LSM) index, Soda Ash accounts for around 0.1% of the chemicals segment, reflecting its modest statistical weight, despite being an essential industrial input. Soda Ash is a critical raw material used primarily in the manufacturing of glass, detergents, chemicals, and various industrial products. It is an anhydrous white powder or granular material, produced in light and dense grades, each catering to different industrial applications. Demand for Soda Ash remains closely linked to construction and glass industry performance, which remained weak during the reviewed period. In contrast, demand for sodium bicarbonate (food grade) remained relatively resilient, supported by sustained consumption from the poultry, confectionery, and food processing sectors, partially offsetting weakness in industrial demand. Currently, nearly 90% of domestic Soda Ash demand is met through local production, with imports now reduced to a minimal level following regulatory interventions. Looking ahead, the industry is expected to benefit from export opportunities, as sufficient installed capacity exists to cater to regional and international markets. Should global prices stabilize and anti‑dumping measures remain in force, exports could play a meaningful role in improving capacity utilization, supporting margins, and strengthening the long‑term outlook for domestic Soda Ash manufacturers.

The Soda Ash market in Pakistan is highly concentrated, with Lucky Core Industries holding an estimated ~60% market share, followed by Olympia Chemicals with around ~30%, while the remaining ~10% of domestic demand is met through imports. Within the local manufacturing landscape, Olympia Chemicals ranks as the second‑largest producer of Soda Ash, positioning the Company as a key participant in the industry. In terms of potential new competition, a prominent textile group announced on April 27, 2023 that its wholly‑owned subsidiary, Sapphire Chemicals (Private) Limited, intends to establish a Soda Ash manufacturing facility with an annual capacity of 220,000 tons at a proposed plant in Khushab. The subsidiary’s scope of operations includes the manufacturing, processing, refinement, distribution, import, export, and trading of a wide range of chemical products. However, the proposed project has not yet commenced production. Additionally, the said local business group has obtained approval under the Special Economic Zone (SEZ) framework for the development of a new Soda Ash manufacturing facility, which is expected to become operational within the next three years. Despite regulatory approvals, the project continues to face several execution challenges, most notably water supply constraints in the project area, which may affect timelines and feasibility. Overall, barriers to entry in the Soda Ash industry remain strong, given the requirement for substantial capital investment, long project gestation periods, infrastructure dependencies, and access to critical inputs such as water and energy. These factors limit the threat of rapid new capacity additions and support the competitive positioning of existing players. Furthermore, the export potential for Soda Ash remains strong, supported by steady regional and international demand. This provides an opportunity for established domestic manufacturers to diversify revenue streams, enhance capacity utilization, and pursue growth in international markets, thereby strengthening long‑term industry prospects.

During IHFY26, the Company’s top‑line revenue increased moderately, reaching PKR 10,997 million, compared to PKR 22,496 million in FY25. The Company’s revenue base remains well diversified, operating across both business‑to‑business (B2B) and business‑to‑consumer (B2C) segments. Consumer exposure is primarily driven by its detergents business, which provides stability and helps mitigate concentration risk. This diversified mix supports resilience across varying market cycles and enhances the sustainability of earnings. Within the product portfolio, Soda Ash continues to be the largest revenue‑contributing segment. As a critical input for multiple downstream industries, Soda Ash benefits from strong demand fundamentals and broad end‑use applications. Its contribution not only underpins the Company’s top‑line growth but also reinforces its strategic positioning within the industry, serving as a cornerstone of long‑term competitiveness.

During IHFY26, the Company experienced a contraction in profitability margins, largely driven by prevailing cost‑push inflationary pressures. The gross margin declined to ~12.4%, compared to ~17% in FY25, reflecting higher input and operating costs that could not be fully transferred to customers. Similarly, the operating margin fell to around ~9% in IHFY26, down from ~14% in FY25, as elevated raw material prices, utility expenses, and other operating overheads weighed on performance. On the financing side, however, the Company reported a notable improvement. Finance costs decreased significantly to PKR 112 million in IHFY26, compared to PKR 332 million in FY25. This reduction highlights a more efficient financing structure during the period. Consequently, net profit for IHFY26 was recorded at PKR 735 million, compared to PKR 2,177 million in FY25. The year‑on‑year decline in net profitability was primarily attributable to margin compression resulting from inflationary cost pressures, despite the benefit of reduced finance costs.

The Company operates in products that constitute essential raw materials for a wide range of downstream industries, including sectors where continuity of supply is critical for uninterrupted production. This diversified end‑use base reduces dependency on any single industry and provides a strong foundation for business stability, resilience, and long‑term growth, even during periods of economic volatility. Management follows a well‑defined and structured business plan, developed on the basis of realistic market assumptions, demand projections, and operating conditions. The planning framework incorporates prudent risk assessment, alignment with industry trends, and disciplined resource allocation to ensure sustainable performance. To ensure effective execution, the Company has established a robust performance monitoring mechanism, under which actual operating and financial results are reviewed against planned targets on a regular and periodic basis. These reviews are conducted by senior management and focus on key parameters such as volumes, margins, working capital, and cash flows. Any material variances are promptly analyzed, and corrective actions are implemented in a timely manner, thereby strengthening operational control and strategic oversight. Overall, this combination of essential product positioning, diversified end‑market exposure, disciplined planning, and close performance monitoring provides the Company with a strong platform for sustainable growth and effective risk management.

During IHFY26, the Company’s inventory days increased to 62 days, compared to 52 days in FY25, reflecting a buildup in inventory levels during the period. At the same time, trade receivable days improved to 36 days, down from 40 days in FY25, indicating stronger collection efficiency and tighter credit control. As a result of these movements, the Company’s gross working capital days rose to 98 days in IHFY26, compared to 92 days in FY25, primarily driven by higher inventory holding. On the payables side, trade payable days increased to 43 days, up from 40 days in FY25, providing partial offset through improved supplier credit terms. Consequently, net working capital days stood at 55 days in IHFY26, compared to 52 days in FY25, reflecting a modest increase in net funds locked in working capital, largely attributable to elevated inventory levels despite improvements in receivable management and slightly extended payables.

The Company reported operating cash flows of PKR 1,223 million during IHFY26, in FY25 it was reported at PKR 3,228 million. Despite the contraction in operating cash flows, the Company’s financial resilience is underscored by its strong interest coverage ratio. The ratio improved significantly to ~10.9x in IHFY26, compared to ~8.2x in FY25. This enhancement demonstrates the Company’s strengthened capacity to meet interest obligations, supported by prudent financial management and operational efficiency. Overall, while cash flow generation has weakened, the improvement in coverage metrics provides comfort regarding the Company’s ability to withstand financial pressures and maintain stability in its debt servicing profile.

The Company’s capital structure remains moderately leveraged. As of IHFY26, overall leveraging stood at ~17.2%, compared to 14.5% in FY25, indicating a gradual increase in financial gearing. A notable development during the period was the significant rise in short‑term borrowings, which escalated to nearly ~34% in IHFY26 from ~10.8% in FY25. This sharp increase reflects greater reliance on short‑term funding sources, thereby heightening liquidity risk and exposing the Company to refinancing pressures. While the leverage position remains moderate, the shift toward short‑term debt underscores the importance of prudent financial management. Sustaining a balanced debt profile and strengthening cash flow generation will be critical to maintaining stability in the Company’s capital structure going forward.