⚡ Flash Summary
Big Bird Foods Limited (BBFL) reported strong topline growth of 58% in 2025, with sales reaching PKR 11.36 billion, driven by higher volumes and robust demand for value-added products. Gross profit increased by 50%, but the margin contracted slightly due to rising input costs. Net profit after tax grew by 39% to PKR 1.16 billion, with EPS increasing to PKR 3.90, reflecting solid bottom-line performance despite a higher tax charge. The company’s strategic focus on innovation, sustainability, and international market expansion positions it well for future growth, though operational and market risks remain.
📌 Key Takeaways
- 🚀 Revenue soared by 58%, reaching PKR 11.36 billion in FY25, compared to PKR 7.20 billion last year.
- 💰 Gross profit surged by 50%, highlighting BBFL’s enhanced operational efficiency.
- 📉 Gross profit margin saw a slight dip to 20.96% from 22.02%, due to inflationary pressures and volatile input costs.
- 📈 Operating profit jumped by 60%, showcasing effective cost management strategies.
- 💸 Profit before tax skyrocketed by 86%, indicating strong financial discipline.
- 📊 Net profit after tax climbed to PKR 1.16 billion, a 39% increase from PKR 838 million.
- ⭐ Earnings per share (EPS) improved by 39%, rising from PKR 2.80 to PKR 3.90.
- 🌱 BBFL initiated a 3MW solar power project, targeting ~40% offset of total energy needs and lowering carbon footprint.
- 🌍 Export market expansion gained momentum, tapping into growing global demand for premium halal food products.
- 🤝 BBFL entered a strategic agreement with Alibaba Group, enhancing access to global B2B platforms.
- 💪 BBFL successfully restructured bank liabilities, settling PKR 500 million in outstanding debt.
- 🚫 No dividend declared for FY25 due to the need for capacity enhancement, working capital, and liquidity preservation.
🎯 Investment Thesis
BBFL is a BUY. BBFL has strong growth in revenue and earnings, driven by high-quality halal products. The risks associated with the business are manageable. The company’s investment in renewable energy will enhance the long term financial viability of the business. The price target is PKR 6, targeting 15% appreciation. The time horizon is medium term.
Disclaimer: AI-generated analysis. Not financial advice.