⚡ Flash Summary

Shezan International Limited’s corporate briefing session for FY 2024-25 reveals a mixed performance. Revenue has seen a gradual increase over the past few years, reaching PKR 9.183 billion in 2025. However, profit after tax has been volatile, with a significant loss in 2024 followed by a recovery to PKR 163 million in 2025. The company faces challenges including flood-related disruptions and the impact of Federal Excise Duty (FED) on its products.

📌 Key Takeaways

• Established in 1964, Shezan focuses on juices and drinks. 🥤
• Company has manufacturing units in KPK and Sindh. 🏭
• Revenue increased from PKR 7.313 billion in 2020 to PKR 9.183 billion in 2025. 📈
• Federal Excise Duty (FED) increased significantly in 2024 and 2025. ⚠️
• Loss after tax of PKR 463 million in 2024. 📉
• Profit after tax recovered to PKR 163 million in 2025. ⬆️
• Earnings per share (EPS) was negative in 2020 and 2024, but positive in other years. 📊
• Break-up value per share decreased from PKR 221.93 in 2020 to PKR 162.96 in 2025. ↘️
• Dividend payout ratio fluctuated, reaching 42% in 2025. 💸
• Company faces risks from floods, inflation, and currency fluctuations. 🌊
• 20% FED on juices and PKR 15/- per kg FED on sugar impacts input costs. 🍬
• Shezan is part of the Fruit Juice Council, advocating for FED reduction. 🍎
• Plans to install solar energy system in Lahore to reduce costs. ☀️
• Focus on exports, product innovation, and cost optimization. 💡

🎯 Investment Thesis

Given the inconsistent profitability, declining break-up value, and external risks, a HOLD recommendation is appropriate. While revenue growth is positive, the company needs to stabilize its profitability and mitigate the impact of FED and other risks. A BUY recommendation would require evidence of improved profitability and risk management.