MARKET ANALYSIS

ORGANIC MEAT IN $1M DEAL TO EXPORT FROZEN FOOD

The Organic Meat Company Ltd (TOMCL) has signed a $1 million contract to supply frozen boneless meat to a Middle East-based food processor, under a 10-month period it will supply 250 metric tonnes of meat to Global Developing Food Industries Company, Saudi Arabia. It’s the first Pakistani company that’s been approved by the Saudi Food and Drug Authority to export frozen meat via sea to Saudi Arabia. The contract value is worth roughly 6.3% of the company’s sales in the trailing 12 months. TOMCL began production in 2011 and became listed last year and is currently valued almost Rs4bn on the Pakistan Stock Exchange. Its net profit for the latest quarter was Rs64.2m, up 15.1pc from a year ago. Its share price increased 1.5pc to Rs35.50. Foreign sales constitute more than 96pc of its total sales. Its Middle East-based customers are switching from fresh chilled to frozen meat as the sales of the former dropped by one-third in the latest quarter. However, volumetric sales of frozen meat grew 77pc. The UAE is the company’s largest market with a 72pc share in volumetric sales. TOMCL exports frozen white and red offal, sourced from other local players.