Lahore: Shezan International Ltd. (SHEZ) shared its FY25 results and future outlook during an analyst briefing, revealing significant financial growth and strategic expansion plans.
The company reported a gross revenue of PkR13.1 billion for FY25, marking a 12% increase from the prior year's PkR11.8 billion. This growth was attributed to expanded market reach and timely price adjustments.
Earnings for the year reached PkR163 million, a notable turnaround from a loss of PkR463 million in FY24. This positive shift was primarily due to improved gross margins.
Local sales saw an 11% increase, reaching PkR12 billion, driven by heightened domestic demand. Export sales also rose by 17% to PkR1.1 billion as the company expanded its presence in Europe, North America, and Canada.
Looking ahead, Shezan's management anticipates revenue growth of 10-15% in FY26. Export sales are also expected to rise by 10-15%, supported by a growing distribution network in key markets.
The company's gross margin improved to 25%, up from 20% in the previous year, thanks to cost optimization measures. Management expects these margins to remain stable in FY26.
Juices and drinks remain a significant part of Shezan's portfolio, contributing approximately 70% to its revenue with a market share of 20%.
Additionally, the company has launched a water plant, with production focused in Lahore and its surrounding areas. The local market is increasingly favoring domestic brands, a trend Shezan aims to capitalize on.
Management does not foresee any reduction in the Federal Excise Duty in coming years but remains committed to ensuring it does not increase.
The company’s current stock is not part of AKD Securities Limited's formal coverage.