The Organic Meat Company Limited (PSX: TOMCL) reported a 74% decline in annual profit for fiscal year 2026. The company attributed the financial pressure partly to disruptions caused by the US-Iran War.
The company’s profit fell to $405,000 in FY26, compared with $1.52 million in the previous fiscal year. Its revenue also declined as shipping difficulties affected exports to Gulf markets.
According to the reported financial results, TOMCL’s sales dropped by more than 11% during the year. Revenue decreased to $44.4 million from $50.5 million in FY25.
The US-Iran War disrupted shipping routes across the Gulf region. These challenges made it harder for the company to fulfil export orders and meet delivery commitments.
Shipping Disruptions Affect Export Operations
The Organic Meat Company exports beef, mutton, and camel meat to more than 16 countries. Its key international markets include the United Arab Emirates and Saudi Arabia.
The company depends on regional shipping networks to deliver meat products to overseas customers. However, disruptions linked to the US-Iran War complicated transportation and export operations.
These difficulties affected the company’s ability to complete shipments as planned. Delays and logistical challenges also placed pressure on its overall business performance.
The Gulf region remains an important destination for the company’s meat exports. Disruptions affecting these markets can influence sales, delivery schedules, and operating costs.
Gross and Operating Profits Record Significant Declines
TOMCL also reported a substantial decline in gross profit during FY26.
Its gross profit fell by 24% to Rs. 1.09 billion. The company had recorded a higher gross profit in the previous fiscal year.
Operating profit experienced an even sharper decline. It dropped by 62% to Rs. 248.91 million during the financial year.
The decline reflects growing pressure on the company’s operating performance. Lower sales and difficulties in export operations contributed to the challenging business environment.
Meanwhile, administrative expenses increased by 4% to Rs. 281 million. Provisions for expected credit losses also rose by 34% to Rs. 212 million.
These increases added further pressure to the company’s financial results. Higher expenses can reduce profitability when revenue and operating income are already declining.
Lower Finance Costs Provide Limited Relief
Despite the weaker results, TOMCL recorded a reduction in finance costs during FY26.
Finance costs decreased by 54% to Rs. 64 million. This reduction provided some relief amid declining sales and operating profits.
However, the savings were insufficient to offset the broader financial challenges. The company continued to report a significant fall in annual earnings.
Earnings per share also declined considerably during the year. The figure dropped to Rs. 0.57 in FY26 from Rs. 2.50 in FY25.
Company Faces Challenges Amid Regional Uncertainty
The company’s latest financial results highlight the impact of export disruptions on its business performance. Its dependence on international markets exposes operations to regional shipping and logistical challenges.
The US-Iran War has created additional uncertainty for businesses relying on Gulf trade routes. For TOMCL, these disruptions coincided with lower sales and declining profitability.
The company’s future performance will depend partly on export conditions and its ability to manage operational costs. Changes in regional shipping conditions could also affect deliveries to key international markets.
In other news read more about US-Iran Talks May Resume as Pakistan and Qatar Considered for Mediation
For now, TOMCL’s FY26 results show a sharp decline in profitability compared with the previous year. The reported figures underline the financial pressure facing the meat exporter amid regional trade disruptions.
