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 48.57percent 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 (2019-25)
After posting a staggering rise in 2019, 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 from 2020 to 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 which had reached their optimum level in 2019, stayed in the negative zone from 2020 to 2023 except for positive gross and operating margins in 2020 and a positive gross margin in 2022. In 2024, CLOV’s margins posted significant growth followed by a downtick in 2025 (see the graph of profitability ratios).
The detailed performance review of the period under consideration is given below.
In 2019, CLOV’s topline boasted a whopping year-on-year growth of 691.12 percent to clock in at Rs.1243.97 million.
During the year, CLOV merged with Hascombe Business Solutions which provideda new line of business to the company i.e. office automation, vending machines, digital screens etc. 2019 proved to be the best year in CLOV’s history as it touted an impressive revenue which mainly came on the back of trading and services division of the company.
High cost of sales as well as operating expenses speak volumes of the company’s growing operations and the associated increase in the workforce. With 1339.55 percent year-on-year increase in CLOV’s gross profit, GP margin jumped up to 36.55 percent in 2019 from GP margin of 20.10 percent recorded in 2018.
Operating profit also boasted a year-on-year rise of 825.75 percent in 2019, culminating into OP margin of 25.63 percent in 2019 versus OP margin of 21.90 percent recorded in 2018.
The company had a very low gearing ratio and its finance cost mainly comprisedof bank charges which grew by 83.95 percent year-on-year to clock in at Rs.2.05 million in 2019. CLOV’s net profit rose by 967.41 percent year-on-year in 2019 to clock in at Rs.252.496 million with NP margin of 20.30 percent versus NP margin of 15 percent posted in 2018.
The shares issued in lieu of amalgamation diluted the growth of EPS which posted 223.11 percent year-on-year growth to clock in at Rs.8.11 in 2019.
It seems like CLOV’s luck ran out in 2020. After a tremendous growth witnessed in 2019, CLOV’s topline tumbled by 68.29 percent year-on-year in 2020 to clock in at Rs.394.43 million. This was due to completion of one-off projects last year. Moreover, the outbreak of COVID-19 during the year also took its toll on the business operations of CLOV.
Cost of sales shrank by 60.80 percent year-on-year in 2020 translating into GP margin of 21.55 percent.
Administrative expense declined by 46.41 percent year-on-year in 2020 due to lower payroll expense as the number of employees was reduced to 109 in 2020 from 132 in 2019. Furthermore, lesser travelling expense, repair and maintenance charges as well as office and utility expense on account of lockdown imposed during the year also kept administrative expense in check in 2020.
Conversely, distribution expense posted 135.73 percent year-on-year growth in 2020 on account of higher payroll expense of sales force as well as increased rent, rates and taxes incurred during the year. Other income multiplied by 2018.60 percent year-on-year in 2020 on account of mark-up income on overdue receivables as well as profit on bank deposits.
Robust other income couldn’t save operating profit from posting a steep fall of 94.38 percent year-on-year in 2020 with OP margin sliding to down to 4.54 percent. Finance cost grew by 48.51 percent year-on-year in 2020 to clock in at Rs.3.05 million. What literally turned the tables for CLOV and pushed its bottomline into net loss was the impairment of goodwill worth Rs.162.88 million in 2020. The company registered net loss of Rs.155.218 million with loss per share of Rs. 4.98 in 2020.
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 andSahar 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. 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. 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.
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 leavingonly 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 (1QFY26)
During the first quarter of the ongoing fiscal year, CLOV recorded 68.55 percent increase in its net sales which clocked in at Rs.1391.29 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 48.66 percent in 1QFY26 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 12.38 percent in 1QFY25 to 3.77 percent in 1QFY26. Operating expense mounted by 352.29 percent in 1QFY26 due to increased capacity, higher production and improved sales volume. Profit related provisioning appears to be the cause of other expense of Rs.2.319 million recorded in 1QFY26 versus no other expense recorded in the comparable period of the previous year.
Operating profit plunged by 68.14 percent in 1QFY26 with OP margin clocking in at 2.24 percent versus OP margin of 11.87 percent recorded in 1QFY25. CLOV posted net profit of Rs.29.153 million in 1QFY26, down 66.75 percent year-on-year. This translated into EPS of Rs.0.75 in 1QFY26 versus EPS of Rs.2.25 recorded in 1QFY25. NP margin nosedived from 10.62 percent in 1QFY25 to 2.10 percent in 1QFY26
Future Outlook
The impending strategic partnership with Fossil Energy Private Limited (the parent company) will benefit CLOV as the former plans to construct 50 filling/service stations over the next three years with CLOV appointed as a sole dealer for its site operations – both for the existing and upcoming service stations.
This will offer tremendous opportunity to CLOV to revive its financial performance and market presence. Furthermore, the change in the company’s line of business from food products to petroleum products will also continue to result in phenomenal growth in topline and profitability.