Karachi, October 12, 2021 (PPI-OT): TOMCL: Briefing session key takeaways
The Organic Meat Company Ltd (TOMCL) held its corporate briefing session yesterday to discuss FY21 results and the outlook of the company. We present key takeaways from the session.
The Organic Meat Company Ltd (TOMCL) announced its FY21 result on 1st October, 2021 wherein the company posted earnings of Rs303.5mn translating into an EPS of Rs2.7 (compared to an EPS of Rs2.4 in FY20). The company also announced 10% Bonus shares with the result.
Sales volume of chilled meat to CIS markets fell during the outgoing year due to impediments in transit, Offal business on the other hand showed impressive growth owing to availability of a wider range of offal products. Exports of fresh chilled meat accounted for roughly half of the total sales of the company whereas, frozen meat exports constituted 32% of sales. Fresh chilled meat’s volume dropped by 36% while Frozen meat export volumes grew by 78% during the year. As per the management, a revenue target of Rs5bn has been set for FY22.
TOMCL is the only meat company in Pakistan dealing in exports of Offal products. The company plans to start the Offal facility in Korangi from Nov-2021 as it expects significant demand from China. The facility will also have a heat-treated meat processing unit with a capacity of 300tons/month.
TOMCL has obtained all necessary approvals from Chinese authorities for the export of cooked/heat treated meat and governments of Pakistan and China are currently finalizing the protocols. Meanwhile the company has already sent product samples to China and export orders are expected in the coming months.
The company has plans to acquire an existing facility at the Karachi Export Processing Zone (EPZ) to capitalize on the duty-free import of Raw material for the processing of Offals to export it to Asian countries.
The company has obtained approvals from USDA (FDA) for export of de- hydrated pet food to the US and management plans to expand its pet food product portfolio. The pet food segment would add around Rs200mn to the topline by FY23.
TOMCL is setting up an animal fattening farm right next to its Gadap processing plant. Company has already sourced 3,500 animals and 5 out of 7 sheds are ready. This will enable the company to develop its own source of raw materials, going forward. Currently 25% of the raw material requirements are being met through this farm.