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or "the Company") is a public unlisted Company, limited by shares incorporated in Pakistan on April 17, 2007, under the repealed Companies Ordinance, 1984, now Companies Act, 2017.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. The Company exhibited a strong financial performance, securing a consolidated topline of PKR 44.83bln and net profitability of PKR 8.95bln as of 1HFY26.

The seven-member board comprises six male directors and one female director. The board composition includes two non-executive directors, three 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 assumed the role of Chief Executive at Lucky Cement Limited (LCL), succeeding his late father in 2005. His leadership extends well beyond the cement industry, as he holds prominent positions as Chairman of Yunus Textile Mills Limited, Lucky Motors Corporation, Lucky Electric Power Company Limited, and Gadoon Textile Mills Limited. He additionally serves as Vice Chairman of Lucky Core Industries Limited (formerly ICI Pakistan Limited). He is also Chairman of National Resources Limited (NRL), a mining company that has received exploration leases in the Chagai district of Balochistan. The company is currently exploring the area by introducing modern mining methods, engaging world-class consultants, and training local engineers for sustainable development. Beyond the corporate sphere, Mr. Tabba plays a pivotal role in industry and community organizations. He serves as Chairman of the All-Pakistan Cement Manufacturers Association, and his previous responsibilities included the Chairmanship of the Pakistan Textile Council and the Pakistan Business Council.

Mr. Muhammad Hassan Tabba is the Chief Executive Officer of Yunus Textile Mills Limited (YTML). He graduated from Bentley University, Massachusetts, USA, in 2019 with a degree in Business and Finance. Following his graduation, he has been actively involved in developing corporate strategies. He also serves as Director at Lucky Cement, Gadoon Textile Mills, Lucky Energy, Yunus Energy, Lucky Renewables, Lucky Textile Mills, Lucky Electric Power Company, Lucky Land Mark, and YB Pakistan Limited. He is also associated with the Aziz Tabba Foundation, a not-for-profit organization engaged in community welfare initiatives.

Mr. Jawed Tabba, Vice Chairman of YBG, serves as Chief Executive Officer and Director of Lucky Textile Mills Limited. He sits on the Board and related sub-committees of Lucky Cement Limited, ICI Pakistan Limited, Gadoon Textile Mills Limited, and Lucky Motors Corporation. He is actively involved in the formulation of vision, strategy, and governance structures across these companies and also oversees the LuckyOne Real Estate Project. Socially Mr. Jawed Yunus Tabba is extensively engaged in community welfare projects which include the Aziz Tabba Foundation (ATF), which is working extensively in the field of social welfare, education, health and housing. He is also a Member of Young President Organization (YPO).

Mr. Muhammad Sohail Tabba became Chairman of Lucky Core Industries Limited (formerly ICI Pakistan Limited) in 2014 and was appointed Chairman of the Board of Lucky Cement Limited in 2023. He previously served as Chairman of the Board of Nutrico Morinaga (Pvt.) Limited. In addition to serving as Chairman of Yunus Energy Limited and Chief Executive Officer of Lucky Energy (Private) Limited and LuckyOne (Private) Limited, Mr. Tabba serves as Director of Lucky Motor Corporation Limited and several other group companies. He is also a Director of the Aziz Tabba Foundation, which operates the Tabba Heart Institute and Tabba Kidney Institute, alongside various other welfare initiatives.

Ms. Saba Kamal holds an MBA from the Institute of Business Administration (IBA), Karachi, and has completed several certifications and training programmes at IBM Centers and through INSEAD, Boston University, and the China Europe International Business School (CEIBS). She has completed her Director certification from the Pakistan Institute of Corporate Governance and currently serves on the Board of Packages Limited. She is also a member of the IBA Board of Governors. Ms. Kamal brings over three decades of experience in Information Technology, including more than 20 years in senior leadership positions with IBM in Pakistan and internationally.

Mr. Yacoob Suttar is a Fellow Member of both the Institute of Chartered Accountants of Pakistan and the Institute of Cost and Management Accountants of Pakistan, with over 40 years of experience in Pakistan and internationally. He previously worked in Saudi Arabia as Finance Controller of a large Saudi company. Within Pakistan, he spent 17 years with Engro Corporation in various capacities, including project development. He has also served as Chief Executive Officer of Asia Petroleum Limited, Deputy Managing Director of Pakistan State Oil Company Limited, and Non-Executive Director of Pakistan Refinery Limited. He served as President of the Institute of Chartered Accountants of Pakistan for the term 2014–15 and as a Board Member of the International Federation of Accountants (IFAC) from 2017 to 2023.

Mr. Khaldoon bin Latif is a LUMS alumnus and has completed several capital market courses with the CFA Association, Daiwa, J.P. Morgan, and the Bahrain Institute of Banking and Finance (BIBF). He has also completed the Director Certification Programme from IBA. He has been a member of the Mutual Fund Association of Pakistan for over six years and served as its Vice Chairman during FY2021–22. He is a Non-Executive Director of IIBank LLC, a bank holding company based in Bahrain with operations across Africa and Europe. He is a former Board Member of TRG Pakistan and Pace Pakistan.

The Company has three board committees in place: the Audit Committee, the Human Resources (HR) Committee and Environment and Social Governance (ESG) Committee. The Company's 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 FY25, five board meetings were held, with strong attendance from all members. Meeting 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, 2025. The Company has an in-house internal audit department, led by Mr. Mahmood Anwar, a Certified Internal Auditor (CIA), 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, Massachusetts, USA, in 2019 with a degree in Business and Finance. Since his graduation, he has been actively involved in developing and executing corporate strategies across the Group. He also serves as Director on the boards of Lucky Cement, Gadoon Textile Mills, Lucky Energy, Yunus Energy, Lucky Renewables, Lucky Textile Mills, Lucky Electric Power Company, Lucky Land Mark, and YB Pakistan Limited. In addition, he is associated with the Aziz Tabba Foundation, a not-for-profit organization engaged in a range of community welfare initiatives.

The COO, Mr. Mohammad Nisar Palla, is a graduate of San Jose State University, California, USA, and brings with him over three decades of diversified professional experience across the textile sector. The CFO, Mr. Altaf Hussain Makna, has been associated with the Company since 2011. He is a Fellow Chartered Accountant and carries more than three decades of professional experience in financial management and corporate reporting.

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.

Textile exports reached USD 17.9 billion in FY25, a modest rise from USD 16.7 billion the previous year, reflecting a 7.2% year-over-year growth. The largest contribution came from the composite and garments segment, at USD 14 billion, which included the weaving segment at USD 1.8 billion and the spinning segment at USD 0.7 billion. The production of cotton cloth in FY25 declined by approximately 0.7% year over year, reaching around 877.1 million square meters. During FY25, about 25.3% of the cotton cloth produced was exported (compared to roughly 27.2% in FY24), with the rest used for the domestic market. The country's fabric exports fell by approximately 4.4% in FY25 (FY24: up about 5.8% YoY), with approximately 23.4% of Pakistan's cotton cloth exports going to Bangladesh (compared to about 19.9% in FY24), followed by the USA with about 8.1% of cotton cloth exports (compared to approximately 7.8% in FY24). In FY25, the transition from the final tax regime to the normal tax regime is expected to affect the profitability of export-oriented units, with a 29% tax on profits and a super tax of up to 10%. The recent removal of GST exemption (Finance Bill, 2025) on textile inputs for exporters registered under the Export Facilitation Scheme (EFS) will offer tax protection and create a level playing field for domestic cotton and yarn producers. Currently, internat ional cotton prices are higher than the price of locally produced cotton. The gap has widened to approximately 9.8 cents per pound (as of July 18, 2025), resulting in an average increase of about USD 36.8 per bale of imported cotton. A greater reliance on imported cotton could Lead to higher raw material costs, ultimately impacting yarn prices and profit margins for the sector. Conversely, energy and finance costs are expected to stay within a range, given the projected reduction in interest rates and the absence of any major energy tariff increases. Considering the current climate change, flooding in major cotton regions, and shifting crop patterns, the target of approximately 10.2 million bales for FY26 appears challenging.

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-oriented. Over the last three years, the Company's topline exhibited a cumulative growth of approximately 6.7%, from June 2023 to June 2025, underpinned by a steady expansion in business volumes despite a challenging operating environment and intensifying competition from regional players. This positive momentum carried into 1HFY26, with the Company recording healthy quarter-on-quarter revenue growth, reflecting continued traction in core markets and improving demand visibility.

On the business front, the Company maintains a well-diversified geographical export presence spanning major international markets, including the United States, Sweden, France, Denmark, the United Kingdom, Hong Kong, Italy, and other destinations. While top-client concentration remains slightly elevated, the Company's entrenched relationships with established international buyers, built over extended periods of consistent engagement provide comfort with respect to revenue stability and order flow continuity.

During 1HFY26, the Company's profitability indicators demonstrated a notable recovery. Improved cost absorption, easing input cost pressures, and stronger operational throughput collectively supported a meaningful improvement in core margins. Notably, the Company's strategic initiative to invest in solar and wind turbine projects yielded tangible benefits during the period, materially curtailing reliance on the national grid and conventional energy sources, thereby reducing the per-unit cost of production. Concurrently, meticulous allocation of surplus funds into capital market instruments and strategic investments further augmented the earnings base, generating a stable stream of non-core income that provides a meaningful cushion to the overall profitability.

To mitigate energy cost risks and enhance operational efficiency, the Company has made substantial investments in renewable energy infrastructure, including large-scale solar and wind power projects, alongside Balancing, Modernization, and Replacement (BMR) initiatives across its existing facilities. These measures have strengthened the Company's cost competitiveness, and provides a degree of insulation against volatility in energy tariffs, while simultaneously improving overall operational efficiencies across segments.

Going forward, management remains optimistic about the Company's revenue trajectory over the near-to-medium term, supported by sustained demand from its existing customer base and the progressive onboarding of new clients across key export markets.

The Company finances its working capital requirements through a combination of internally generated cash flows and short-term borrowings. During 1HFY26, the working capital cycle lengthened relative to the prior year, primarily reflecting a higher inventory holding period and a moderation in trade receivable realization. While this exerted upward pressure on working capital requirements, it remained broadly consistent with the scale and nature of the Company's operations. The Company continues to maintain considerable financial flexibility, supported by a sizeable equity base, strong banking relationships, and ample borrowing headroom. A healthy level of current assets relative to short-term obligations further support the robust liquidity profile, providing adequate capacity to meet operational and financial commitments.

Cash flow generation remained appreciable during 1HFY26, supported by stronger profitability and sustained operational performance. The improvement in pre-tax earnings translated into solid free cash flows from operations, reinforcing the Company's capacity to fund core business requirements from internal resources. This, alongside a moderation in financing costs, enhanced debt servicing capacity and coverage metrics during the period under review. This depicts the prudent financial management and a resilient earnings base. The Company's ability to generate sufficient operating cash flows continues to serve as a buffer against financial obligations while supporting any business expansion.

The Company maintains a conservative capital structure, characterized by a modest reliance on external debt financing and a strong, well-capitalized equity base. The borrowing profile comprises a mix of concessionary financing facilities and trade-related borrowings from State Bank of Pakistan, structured to support working capital and export operations while optimizing overall funding costs. During 1HFY26, debt levels increased modestly, driven by increase in utilization of short-term borrowings in line with topline growth. Nevertheless, overall leverage remained within manageable bounds, consistent with the Company's prudent financial policy and conservative approach to capitalization. The financial risk profile continues to be underpinned by a sizeable and steadily growing equity base, following the consistent retention of earnings over the successive periods.