Clover Pakistan Limited (PSX: CLOV) was incorporated in Pakistan as a public listed company in 1986. The company is engaged in the sale of consumer durables, food products, chemicals and lubricants as well as import of trade of gantry equipment’s air/oil filter and other car care products.
The company’s activities also include marketing, distribution and post sales support of office automation products, vending machines, fuel dispensers and digital screens.
As per the company notice published on the Pakistan Stock Exchange website on February 25, 2025, the company has now transitioned its core line of business from food products to petroleum products.
CLOV will now be engaged in the business of selling, trading and marketing of all kinds of petroleum and petroleum products, oil, gas, hydrocarbons, petrochemicals, asphalt and bituminous substances.
Pattern of Shareholding
As of June 30, 2025, CLOV has a total of 38.929 million shares outstanding which are held by 3651 shareholders. Local general public has the majority stake of 48.57 percent in the company followed by Banks, DFIs and NBFIs holding 23.93 percent shares of CLOV. Around 23.76 percent shares of the company are held by associated companies, undertakings and related parties. The remaining shares are held by other categories of shareholders.
Historical Performance (2021-25)
CLOV’s topline registered decline until 2023. This was followed by a phenomenal growth in net sales in 2024 and 2025. CLOV posted negative bottomline until 2023. In 2021, CLOV registered the highest net loss which tumbled thereafter. In 2024, CLOV posted net profit which further strengthened in 2025. The margins stayed in the negative zone from 2021 to 2023 except for a positive gross margin in 2022.
In 2024, CLOV’s margins posted significant growth followed by a downtick in 2025. The detailed performance review of the period under consideration is given below.
In 2021, CLOV’s revenue further contracted by 5 percent year-on-year to clock in at Rs.374.44 million. This was because the company streamlined its business and trading activities during the year. CLOV bid farewell to its FMCG business in 2021. Its two marts namely Nisht Mart and Sahar Mart were flooded with rain water, resulting in the closure of both the marts. The sale of lubricants and supply of goods and maintenance services to the energy sector also suffered due to COVID-19. Cost of sales went up by 28.78 percent year-on-year, resulting in gross loss of Rs.24.07 million in 2021. This was against the gross profit of Rs.84.98 million recorded in 2020. Distribution expense grew by only 2 percent year-on-year in 2021 due to rationalized business operations. Administrative expense rose by 57.54 percent year-on-year in 2021 on account of stocks written off as the two marts of the company were full of fresh inventory and packaging materials which were completely destroyed due to rain water. Other income fell by 94.16 percent year-on-year due to decline in profit on saving deposits and also because there was no mark-up on overdue receivables in 2021. CLOV incurred operating loss of Rs.175.10 million in 2021 as against operating profit of Rs.17.92 million recorded in 2020. The company also booked impairment on trade debts worth Rs.4.02 million in 2021. Moreover, the company entirely wrote off Goodwill as there was a massive slump in CLOV’s petrotech business with OMCs. Gestetner, photocopier and office equipment business also extremely suffered due to closure of government offices and embassies on account of COVID-19. CLOV’s net loss grew by 289.77 percent year-on-year in 2021 to clock in at Rs.604.999 million with loss per share of Rs.19.43. This was against the loss per share of Rs.4.98 recorded in 2020.
2022 saw the greatest year-on-year decline of 75 percent in CLOV’s topline which clocked in at Rs.93.27 million. This was due to decline in sales of industrial chemicals, equipments and lubricants as the local economy witnessed significant slowdown due to high inflation, high cost of doing business, decline in the value of local currency as well as political uncertainty. However, 78.78 percent year-on-year plunge in the cost of sales resulted in gross profit of Rs.8.72 million in 2022 as against gross loss of Rs.24.07 in the previous year. GP margin clocked in at 9.34 percent in 2022. Distribution and administrative expense slumped by 45.58 percent and 19 percent year-on-year respectively in 2022 due to decline in headcount which reduced the payroll expense. Besides, there was a plunge in the advertisement expense, rent, rates and taxes and legal and professional charges in 2022. The stock written off in the previous year also created high-base effect for administrative expense in 2022. Operating loss plummeted by 43.52 percent year-on-year in 2022 to clock in at Rs.98.89 million. There was 23.88 percent rise in impairment booked on trade receivables during 2022. Yet the absence of impairment of goodwill trimmed down the net loss by 81.87 percent year-on-year in 2022 to clock in at Rs.109.71 million with loss per share of Rs.3.52.
In 2023, CLOV’s topline slid by 36.30 percent year-on-year to clock in at Rs.59.41 million. This was because the slowdown of economy adversely affected the industrial and chemical sectors. Furthermore, the company’s chemical business was also severely affected due to fluctuation in the global prices. High inflation didn’t let cost of sales to drop comparably resulting in gross loss of Rs.8.19 million in 2023 versus gross profit of Rs.8.72 recorded in 2022. Distribution expense plunged by 25.52 percent in 2023 due to sizeable decline in payroll expense of sales force, advertising budget and travelling expense. Distribution expense would have been much lower had the company not incurred significantly higher operating lease rentals for rented properties. 43.48 percent lower administrative expense incurred by CLOV in 2023 was due to widespread layoffs over the year leaving only 4 employees in 2023 versus 42 employees in 2022. The company recorded 201.11 percent higher other income in 2023 on the back of higher gain on sale of fixed assets, reversal of accumulated depreciation as well as higher profit on bank deposits. CLOV’s operating loss tumbled by 29.25 percent in 2023 to clock in at Rs.69.96 million. Finance cost (or bank charges) nosedived by 97.93 percent in 2023 to clock in at Rs.0.016 million. CLOV’s net loss slumped by 35 percent year-on-year in 2023 to clock in at Rs.71.249 million with loss per share of Rs.2.29.
After four successive years of net losses, 2024 proved to be a year of fortune for CLOV. The company registered 2950.40 percent higher net revenue to the tune of Rs.1812.30 million in 2024. This was due to a staggering rise in sale of petroleum products in 2024. In 2024, petroleum products accounted for 98 percent of the company’s net sales. CLOV registered gross profit of Rs.248.27 million in 2024 with GP margin of 13.70 percent. Distribution expense tumbled by 89.63 percent in 2024 as no rent, rates & taxes, travelling charges and payroll expense were incurred during the year. Administrative expense ticked up by 12.59 percent in 2024 due to higher rent, rates & taxes incurred as well as advances written off during the year. The company also recorded 74.80 percent lower other income in 2024 as it didn’t recognize any gain on sale of fixed assets and profit on bank accounts unlike last year. Other expense mounted by 805 percent in 2024 as the company did provisioning for WWF and WPPF during the year. CLOV registered operating profit of Rs.185.68 million in 2024 with OP margin of 10.25 percent. Finance cost (bank charges) slid by 68.75 percent in 2024. CLOV registered net profit of Rs.192.326 million in 2024 with EPS of Rs.6.18 and NP margin of 10.61 percent.
In 2025, CLOV’s net sales picked up by 102.94 percent to clock in at Rs.3677.86 million. During the year, the company changed its principal line of business from food products to petroleum products. This was the main reason of the company’s robust financial performance during the year. Gross profit grew by 67.15 percent in 2025, however, GP margin tumbled to 11.28 percent due to competitive and volatile market environment. Distribution expense recorded a massive hike of 3341.55 percent in 2025 due to exorbitant commission expense incurred during the year. Conversely, administrative expense dropped by 12.20 percent in 2025 due to high-base effect as the company wrote off advances and incurred bad debt expense in the previous year. Other expense surged by 37.38 percent in 2025 due to higher provisioning done for WWF and WPPF. Conversely, other income deteriorated by 91 percent in 2025 as the company didn’t make any recovery from scrap sales. Operating profit grew by 40.64 percent in 2025, however, OP margin slid to 7.10 percent. Finance cost spiked by 9520 percent in 2025 to clock in at Rs.0.48 million. This comprised of bank charges as the company’s gearing ratio in zero. Net profit improved by 31.75 percent to clock in at Rs.253.398 million in 2025 with EPS of Rs.6.51 and NP margin of 6.89 percent.
Recent Performance (9MFY26)
During the nine-month period of the ongoing fiscal year, CLOV recorded 63.81 percent increase in its net sales which clocked in at Rs.4312.59 million. This came on the back of continuous increase in the company’s operational capacity and strong market demand. Despite increased sales volume, gross profit deteriorated by 18.14 percent in 9MFY26 as the company initiated the bulk sale of lubricant products during the period under consideration which had low margins. The aim was to increase market penetration. GP margin drastically fell from 14.20 percent in 9MFY25 to 7.10 percent in 9MFY26. Operating expense tapered off 36.62 percent in 9MFY26. This might be because of lower freight charges due to bulk sales. Other expense also plunged by 25.50 percent in 9MFY26 likely due to lower profit related provisioning done during the period. Operating profit ticked down by 8.41 percent in 9MFY26 with OP margin clocking in at 5 percent versus OP margin of 9.10 percent recorded in 9MFY25. Finance cost clocked in at Rs. 1.034 million in 9MFY26, up 315.26 percent year-on-year. This comprised of only bank charges as the company is unleveraged. CLOV posted net profit of Rs.196.503 million in 9MFY26, down 7.43 percent year-on-year. This translated into EPS of Rs.5.05 in 9MFY26 versus EPS of Rs.5.45 recorded in 9MFY25. NP margin nosedived from 8.10 percent in 9MFY25 to 4.56 percent in 9MFY26. It is to be noted that during the period under consideration, the company underwent a stock-split of 10-for-1. This resulted in EPS of Rs.0.5 in 9MFY26 versus EPS of Rs.0.55 (calculated in accordance with increased number of shares).
Future Outlook
The parent company of CLOV, Fossil Energy (Private) Limited intends to sell its 23 percent stake in CLOV to the UAE based Irbanah Ventures International (as per the public announcement posted on the PSX on May 08, 2026). This will likely increase the company’s footprint in the Middle Eastern Market which can expedite its supply chain operations. CLOV has also announced its intention to acquire 40 percent stake in Quick Gases (Private) Limited – a company engaged in storage, marketing and distribution of LPG (as per the public announcement posted on the PSX on May 25, 2026). Expanding into new businesses and markets and attaining operational efficiencies will be the key growth drivers for CLOV in the upcoming times.
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