⚡ Flash Summary
S.S. Oil Mills Ltd reported a strong turnaround for the year ended June 30, 2025, posting a profit after taxation of PKR 250.63 million compared to a loss of PKR 122.99 million in the previous year. This improvement was primarily driven by a 73% increase in sales due to the removal of import bans on GMO seeds and effective funds management. The company has proposed a cash dividend of 50%, a substantial improvement from the previous year’s nil dividend, signaling confidence in its financial health. Despite global economic challenges, management is optimistic about future performance, anticipating better results in the upcoming year.
Signal: BUY 📈
Strength: 8/10
Sentiment: POSITIVE
Time Horizon: MEDIUM_TERM
📌 Key Takeaways
- ✅ Profit after taxation reached PKR 250.63 million, a significant turnaround from a loss of PKR 122.99 million last year.
- ⬆️ Sales increased by 73% due to removal of GMO seed import ban.
- 💰 Cash dividend of 50% was proposed, compared to no dividend last year.
- 📊 EPS improved to PKR 44.29 from a negative PKR 21.74.
- 🏭 Washed Oil production increased to 7,620 M.Tons, from 5,734 M.Tons the prior year.
- 🌾 Meal and Soap production rose to 30,900 M.Tons, compared to 13,978 M.Tons last year.
- 📈 Sales of Washed Oil increased to 6,814 M.Tons from 6,491 M.Tons the prior year.
- 💸 Sales of Meal and Soap increased to 30,829 M.Tons from 12,859 M.Tons the prior year.
- 🌱 Management expects improved local seed crop quality and better yields in the next fiscal year.
- 🤝 The company ratified related party transactions for FY25 and seeks authorization for FY26.
- 🌐 The annual report will be circulated via QR code and web link.
- 👩💼 The company has a female director, meeting statutory requirements.
- 🔒 Robust strategies are in place to manage ESG risks and minimize environmental footprint.
- 🏢 Revaluation surplus amounted to Rs. 318.6 million.
- 💸 The company increased Current assets to Rs. 2,424.30 million from Rs. 2,404.56 million.
🎯 Investment Thesis
S.S. Oil Mills Ltd demonstrates strong turnaround, increased sales, a return to profitability and a dividend payment, a sign of financial health. The recommendation is BUY, based on a turnaround, improved EPS, proposed dividend, and increased sales. A 50% dividend can easily push prices up.
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Disclaimer: AI-generated analysis. Not financial advice.
