KARACHI, Oct 23 (Focus Pakistan) - The Organic Meat Company Ltd spent Rs350 million of the Rs810 million its shareholders chipped in last year on clearing bank loans, it told the Pakistan Stock Exchange (PSX) on Thursday.
TOMCL, a Karachi halal meat exporter, told the bourse it has now used up all the cash from its March 2025 rights offering.
Another Rs260 million paid for a plant to cook beef tripe and process red offal. The last Rs200 million, close to a quarter of the total, went to working capital. The company reported no unutilised funds.
So the lenders’ share beat the company’s spending on new capacity by Rs90 million.
The update follows TOMCL’s Oct 5 results for the year to June 2026, which showed earnings caving.
Net profit sank to Rs112.35 million, from a restated Rs429.79 million. Sales slipped to Rs12.38 billion against Rs14.01 billion in fiscal 2025, a drop of nearly 12%. Per-share earnings went from Rs2.50 to just 57 paisa.
Savings on debt costs and tax relief cushioned the results, according to an analysis by Mettis Global. But lower sales, pressure on gross margins and higher allowances for credit losses outweighed those gains, it said.
The numbers indicate that cutting debt eased TOMCL’s interest burden but could not offset a slowdown in its core export business.
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The Oct 22 filing did not say how much interest the company saved by retiring the loans. It also gave no breakdown of how TOMCL spent the Rs200 million working-capital allocation.
There was no word on the tripe and offal plant either. The filing says nothing about whether it runs commercially or has sold anything abroad yet.
Tripe comes from a cow’s stomach. Red offal, which TOMCL already exports, takes in liver, kidneys and heart. A cooking line lets the company sell some of these as a ready product rather than raw.
The jump in credit-loss allowances matters for a business like this one. Meat exporters buy cattle, run the slaughterhouse and book cargo space long before an overseas importer pays up. When provisions climb, management is effectively flagging money it may see late, or never.
In a rights issue, existing shareholders get first call on new stock, in line with what they already own.
This was TOMCL’s second trip to equity investors. Back in 2020 it floated 40 million shares at Rs20 each, pulling in Rs800 million at listing. That offering drew bids worth Rs1.37 billion, nearly twice the initial issue size.
TOMCL dates back to 2010. It sells chilled and frozen beef, mutton, camel meat and offal, mostly to the Middle East, and has since pushed into China and Central Asia, among other markets.
TOMCL counts BDO Ebrahim & Co as its auditor and has about 196.3 million shares outstanding, according to PSX data.
Shareholders can question the board at the company’s annual general meeting, which TOMCL has called for Monday, Oct 27, at its corporate office in Karachi.
Investors are likely to press management on the interest savings from the loan repayment, the timeline for the processing facility and the rise in bad-debt provisions.
