The Organic Meat Company Limited signed an agreement to export $1 million worth of frozen meat to Saudi Arabia, according to a regulatory filing to the Pakistan Stock Exchange (PSX).
The Organic Meat Company Limited (TOMCL) will supply 250 million tonnes of frozen boneless meat to Global Developing Food Industries Company over the course of 10 months.
“The contract execution gives a pathway for (a) positive impact on our company’s business and value for its shareholders,” the regulatory filing said.
The contract makes up about 6.3 percent of the company’s total sales in the past 12 months.
In addition to frozen boneless meat, TOMCL exports chilled beef and mutton and is the only Pakistani company to export frozen white and red offal.
TOMCL is the Pakistani company approved by the Saudi regulatory authority to supply frozen meat via the sea. In April, TOMCL was also approved by the Chinese customs authority to supply heat-treated beef to China.
In addition, in December, the company won a $3.9 million contract to supply frozen boneless meat to the National Food Company (Americana).
TOMCL started production in 2011, and after being listed last year, is now valued at about Rs. 4 billion on the Pakistan Stock Exchange.
The company’s net profit for the last quarter increased 15.1 percent year-over-year (YoY) to Rs. 64.2 million. TOMCL sold 5,106 million tonnes of chilled meat, frozen meat, and frozen offal this year, with foreign sales making up more than 96 percent of its total sales.
The company is considered to have the most diverse product range and market access within the country’s meat export sector. It has gained approvals to export to countries including UAE, Bahrain, Maldives, Hong Kong, Kuwait, Oman, and Qatar.
TOMCL’s share price rose 1.5 percent to Rs. 35.50 on Monday.