Al Shaheer Corporation Limited

Al Shaheer Corporation Limited (PSX: ASC) initiated its operations as a partnership concern in 2008. It went public in 2015. The principal activity of the company is trading of a wide variety of halal meat including mutton, beef, chicken and fish.

The company was initially only focusing on export market and over the years, expanded its outreach across the GCC countries.

The company started its local operations in 2010 through a chain of retail stores named Meat One. Khaas is another brand of ASC which was initiated in 2014 with an aim to target the neighborhood butcheries. The company has also opened up its meat sections in high traffic superstores. ASC also serves institutional clients with bulk orders.

Pattern of Shareholding

As of June 30, 2025, the company has a total of 374.924 million shares outstanding which are held by 4967 shareholders. Local general public has the majority stake of 70.88 percent in ASC followed by Banks, DFIs and NBFIs holding 1.07 percent shares.

Around 1 percent of the company’s shares are held by Modarabas & Mutual funds and 0.87 by Insurance companies. Foreign public accounts for 0.48 percent shares of ASC. The remaining shares are held by other categories of shareholders.

Performance Trail (2019-25)

The topline of the company which dropped until 2020 took off until 2023. This was followed by a decline in net revenues in 2024 and 2025. Among all the years under consideration, the bottomline posted year-on-year growth only in 2019.

ASC’s net profit started tapering off since 2020 to record net loss in 2022. Net loss further escalated in 2023 and 2024. Conversely, in 2025, net loss significantly shrank. Gross and operating margins of the company which were on the rise until 2020 posted a drastic decline thereafter.

Net margin started its downward journey since 2020 and ended up in the negative territory since 2022. A detailed analysis of the period under consideration is given below.

In 2019, ASC’s revenue plunged by 22 percent year-on-year to clock in at Rs.4188.67 million. This came on the back of lackluster growth across various business segments. Export sales dropped by 7 percent year-on-year.

Almost half of the Meat One and Khaas outlets which were not delivering satisfactory sales were shut down during the year to focus on the high performing stores. Institutional sales also remained under pressure due to intense competition from the unorganized sector which made the company streamline its clientele and eliminate the clients which were offering very low or no margins. These turnaround operations enabled the company to reduce its cost of sales by 28.92 percent year-on-year. This resulted in a marginal 1.34 percent year-on-year rise in gross profit in 2019.

However, GP margin considerably improved from 22.73 percent in 2018 to 29.55 percent in 2019. Administrative and distribution expense also posted 19.94 percent year-on-year decline during the year mainly on the back of lower cargo expense, salaries and wages as well as rent, rates and taxes.

ASC squeezed its workforce from 675 employees in 2018 to 420 employees in 2019. Other income lent a helping hand and boasted a tremendous 154.49 percent year-on-year growth in 2019 particularly on the back of exchange gain due to Pak Rupee depreciation.

Operating profit grew by around 12197.68 percent in 2019 with OP margin of 9.50 percent as against OP margin of 0.1 percent recorded in 2018. Finance cost grew by 339.36 percent in 2019 due to higher discount rate. ASC’s gearing ratio stayed intact at 31 percent in 2019.

The company posted net profit of Rs.199.96 million in 2019 as against net loss of Rs.54.71 million posted in the previous year. EPS stood at Rs.1.25 in 2019 as against loss per share of Rs. 0.36 in 2018. The company recorded NP margin of 4.77 percent in 2019 which is the highest among all the years under consideration.

In 2020, ASC’s net sales shrank by 6.61 percent to clock in at Rs.3912.01 million. While export sales showed growth momentum in 2020, the other three segments – Meat One, Khaas and institutional sales remained under pressure due to liquidity crunch as well as price wars in the industry which was greatly dominated by informal players.

Meat one started showing signs of growth in the last quarter of 2020 when COVID-19 struck and people started choosing hygienic alternatives.

However, this was counterbalanced by a major dent in institutional sales as offices, restaurants, marriage halls etc were completely shut down due to lockdown imposed by the government.

Curtailed sales also cut down the cost of sales which resulted in 3.6 percent year-on-year growth in gross profit with GP margin clocking in at 32.78 percent – the highest among all the years under consideration.

Operating expense shrank by 14.71 percent year-on-year in 2020 mainly on the back of lower rent, rates and taxes as well as salaries and wages. ASC further streamlined its workforce to 373 employees in 2020. Other income thinned down by 68.35 percent in 2020 due to low exchange gain.

Operating profit of ASC grew by 13 percent year-on-year in 2020 with OP margin clocking in at 11.50 percent.

Finance cost grew by 90.60 percent year-on-year in 2020 on the back of increased lease liabilities and government grant coupled with higher discount rate during the initial quarters of FY20. The company also issued 57.84 million right shares during the year which pushed down its gearing ratio to 25 percent in 2020.

Enormous rise in finance cost resulted in bottomline narrowing down by 13.79 percent year-on-year to stand at Rs.172.39 million in 2020. Lower net profit coupled with the issue of right shares during the year resulted in EPS of Rs.1.01 in 2020. NP margin lowered to 4.41 percent in 2020.

ASC’s topline posted a stunning 37.21 percent year-on-year growth to clock in at Rs.5367.51 million in 2021. This was on the back of superior performance across the business segments.

However, higher prices of livestock due to elevated food inflation compressed the GP margin to 24.55 percent in 2021 despite 2.76 percent year-on-year growth in gross profit. It is surprising to see that the company could keep a check on its operational expense which dropped 2 percent year-on-year in 2021 despite significant growth in sales volume and business activity.

During the year, the company hired additional resources which took its workforce to 426 employees. Other income and other expense didn’t behave favorably during the year.

Other expense grew by 774.59 percent in 2021 on the back of a massive exchange loss while other income nosedived by 99.40 percent in 2021 on the back of one-off income generating events which happened in 2020 but were missing in 2021. These included gain on re-measurement of short-term investment, unwinding of interest on sales tax bonds etc. These blockages didn’t allow the topline growth to trickle down and resulted in 34.88 percent year-on-year drop in operating profit.

OP margin also shrank to 5.46 percent in 2021. Finance cost ticked down by 39.10 percent in 2021 on the back of low discount rate. Lower short-term borrowings and issuance of 99.98 million right shares in 2021 pushed down ASC’s gearing ratio to 21 percent. The bottomline shrank by 34.64 percent year-on-year to clock in at Rs.112.68 million in 2021 with EPS of Rs.0.38 and NP margin of 2.1 percent.

In 2022, the topline continued its growth trajectory and posted 12.59 percent year-on-year growth to clock in at Rs.6043.33 million. This came on the back of robust institutional sales while export sales and retail outlets remained under pressure due to rising prices of livestock, utilities as well as challenges on economic and political front.

During the year, ASC also commenced its frozen and processed food facility at Lahore and launched the brand “Chefone” which was showcased at leading stores across Pakistan. The record breaking inflation took its toll on the gross profit of ASC which thinned down by 36.75 percent year-on-year with GP margin of 13.80 percent in 2022.

Administrative and distribution charges which were contained in the previous years, posted a jump of 49.18 percent year-on-year in 2022 on the back of a rise in marketing and advertising expense, depreciation expense as well as salaries and wages. In 2022, ASC’s workforce expanded to 725 employees.

Other income performed exceptionally well to clock in at Rs.571.21 million due to massive exchange gain recognized during the year on account of sharp depreciation of Pak Rupee. Operating profit weakened by 77.62 percent year-on-year in 2022 with OP margin clocking in at 1.1 percent.

Finance cost magnified by 63.71 percent year-on-year in 2022 due to record high discount rates coupled with increased borrowings. ASC’s gearing ratio bounced back to 30 percent in 2022. ASC posted net loss of Rs.238.819 million in 2022 with loss per share of Rs.0.80.

In 2023, ASC posted 13.93 percent year-on-year rise in its net sales which clocked in at Rs.6884.92 million. Poultry and processed foods business performed well during the year as the company made relentless efforts to expand in the institutional and HORECA segment.

The company had already entered into agreements with McDonalds and Hardees for the supply of beef patties across Pakistan. Institutional sales registered year-on-year growth of 257 percent in 2023.

Export sales failed to impress in 2023 due to depressing local and global macroeconomic factors. Similarly, retail segments i.e. Meat One also suffered during the year owing to unprecedented hike in the prices of utility and livestock. The aforementioned factors inflated ASC’s cost of sales by 20.67 percent in 2023 resulting in 28.25 percent lower gross profit and GP margin of 8.69 percent.

Operating expense grew by a paltry 1.05 percent in 2023 mainly on account of higher payroll expense, depreciation expense, marketing & advertising expense as well as utility expense incurred during the year.

In 2023, ASC rationalized its workforce to 658 employees. Other expense escalated by 30878 percent in 2023 mainly on account of hefty allowance booked for ECL.

However, this was majorly offset by 91.41 percent greater other income recorded during the year which was the consequence of handsome exchange gain owing to Pak Rupee depreciation. This was despite thinner export sales recorded during the year. For the first time over the period under consideration, ASC registered operating loss worth Rs.930.38 million in 2023.

To further worsen the bottomline, finance cost mounted by 74.43 percent in 2023 on account of higher discount rate and increased borrowings. Gearing ratio stood mounted to 41 percent in 2023. ASC’s net loss magnified by 664.80 percent to clock in at Rs.1826.49 million in 2023 with loss per share of Rs.5.54.

In 2024, ASC’s net sales drastically fell by 89.48 percent to clock in at Rs.724.44 million. This was due to governance issues faced by the company as most members of the board resigned.

The company’s production facilities operated at its minimum capacity. Out of the installed capacity of 75.187 million kilograms, the company utilized only 2.77 percent capacity. Higher fixed cost per unit due to lower capacity utilization resulted in gross loss of Rs.629.74 million in 2024.

Operating expense faded by 54 percent in 2024 mainly on account of lower payroll expense as the company downsized its workforce from 658 employees in 2023 to 101 employees in 2024. Other expense surged by 72.85 percent in 2024 due to higher allowance booked for ECL on trade debts.

No exchange gain recorded during the year resulted in 97.19 percent decline in other income in 2024. Operating loss mounted by 267.56 percent to clock in at Rs.3419.68 million.

Finance cost thinned down by 84.46 percent due to settlement of a significant portion of long-term loan. While external borrowings were reduced during the year, smaller equity due to higher accumulated losses resulted in a gearing ratio of 77 percent in 2024. Net loss soared by 92.10 percent to clock in at Rs.3508.62 million in 2024. This translated into loss per share of Rs.9.36 in 2024.

In 2025, net sales further descended by 73.12 percent to clock in at Rs.194.75 million. The company continued to face governance issues in 2025 too with the position of board members vacant at different intervals of the year.

The company defaulted on its financial obligations and negotiations took place throughout the year. Capacity utilization further eroded to 1.79 percent in 2025. ASC’s activity remained limited to tolling operations in 2025. Higher fixed cost despite suspended operations resulted in gross loss of Rs.295.17 million in 2025, down 53.13 percent year-on-year.

Operating expense tumbled by 76.13 percent in 2025 due to curtailed payroll expense as number of employees was reduced to 77 in 2025. No other expense was recorded in 2025. Other income of Rs.53.67 million recorded in 2025 mainly comprised of rental income from plant premises. ASC recorded 88.61 percent lower operating loss to the tune of Rs.389.63 million in 2025.

Failure to meet its financial obligations and pay interest/mark-up resulted in no finance cost in 2025. Gearing ratio clocked in at 87 percent in 2025. Net loss was recorded at Rs.392.08 million in 2025, down 88.83 percent year-on-year. This translated into loss per share of Rs.1.05 in 2025.

Future Outlook

The company has been facing grave operational, financial and regulatory challenges. These included breach of T&Cs of financing facilities, frozen bank accounts, regulatory examinations, non-realization of export receivables as well as recurrent legal proceedings.

The company is also placed on PSX’s non-compliant segment. ASC has been incurring net losses since 2022. As of June 30, 2025, its accumulated losses stood at Rs.4836.45 million. Current liabilities exceeded current assets by Rs.3214.18 million.

The newly formed board is actively working to address the ongoing issues facing the company which included revival of operations, financial and operating restructuring as well as diversification into new sectors.