Ismail Industries Limited (PSX: ISIL) was incorporated in Pakistan as a private limited company in 1988 and was converted into a public limited company in 1989. The company is engaged in the manufacturing and trading of sugar, confectionary items, biscuits, potato chips, cast polypropylene (CPP) and Biaxially oriented polyethylene terephthalate (BOPET) film under the brands of Candyland, Bisconni, Snackcity and Astro films respectively.
Pattern of Shareholding
As of June 30, 2026, ISIL has 66.357 million outstanding shares held by 1771 shareholders. Directors, CEO, their spouse and minor children have the majority stake of 98.97 percent in the company. The remaining 1.03 percent shares are divided among associated company (Uniron Industries Private Limited), local general public, foreign general public, foreign companies and other categories of shareholders.
Financial Performance (2021-26)
ISIL’s topline recorded growth over the period under consideration except for a decline in 2025 and 2026. In contrast, the bottomline demonstrated remarkable rebound until 2023. In the following years, ISIL’s bottomline descended. ISIL’s margins displayed a fluctuating pattern. Up until 2020, margins experienced a decline. In 2021, operating and net margins showed signs of recovery, albeit with a continued decrease in gross margin. In 2022, gross and net margins declined, while operating margin witnessed substantial growth. ISIL’s margins followed an uphill journey in 2023 and 2024 barring a decline in net margin in 2024. In 2025 and 2026, all the margins posted a plunge. The detailed performance review of the period under consideration is given below.
ISIL’s topline grew by 12.31 percent year-on-year in 2021 to clock in at Rs.37,307.76 million. This was contributed by 10 percent year-on-year growth in food sales and 20 percent year-on-year growth in plastic sales. Topline growth was the consequence of increased off-take, upward price revisions as well as change in product mix. Region-wise breakup of sales show that local sales marched up by 7 percent year-on-year in 2021 while export sales posted a tremendous 49 percent year-on-year growth, occupying 18 percent of ISIL’s net sales pie in 2021 versus 14 percent in 2020. The company added 4100 MT to the annual capacity of food segment in 2021 and utilized 53 percent of the total capacity. The capacity of plastic segment also escalated to 63000 MT out of which 47 percent was utilized in 2021. Cost of sales grew by 14.33 percent year-on-year in 2021. Gross profit ticked up by 4.60 percent year-on-year, however, GP margin slid to 19.28 percent in 2021 from 20.70 percent in 2020. Selling expense went down by 5.23 percent year-on-year in 2021 on account of lesser advertisement and sales promotion budget allocated for the year. Administrative expense registered 9.80 percent year-on-year hike in 2021 on account of higher payroll expense. In 2021, ISIL posted net other expense of Rs.0.91 million which was the result of massive exchange loss incurred during the year coupled with higher provisioning for WWF and WPPF. These expenses overshadowed the massive gain that ISIL recognized on the disposal of its fixed assets in 2021. Nevertheless, operating profit managed to post 16.10 percent year-on-year rebound in 2021 with slight recovery in OP margin which stood at 6.18 percent versus 5.98 percent in 2020. Finance cost gave a breather as it measured down by 39.98 percent year-on-year in 2021 on account of monetary easing and considerably lesser borrowings obtained during the year. Share of profit from associated companies also contributed to bottomline growth as it grew by 22.26 percent year-on-year in 2021. Net profit rose by 90.64 percent year-on-year to clock in at Rs.1776.67 million in 2021 with NP margin jumping up to 4.76 percent. EPS also grew to Rs.26.77 in 2021. This was against the EPS of Rs.14.49 and NP margin of 2.81 percent recorded in 2020.
ISIL’s topline registered 48.12 percent year-on-year growth in 2022 to clock in at Rs.55,260.70 million. This was on account of 45 percent higher food sales and 60 percent higher plastic sales. Locally, net sales posted 31 percent rebound in 2022. Export sales grew by 126 percent, constituting 27 percent of the net sales of ISIL in 2022. Food segment capacity grew to 183,288 MT in 2022 out of which 55 percent was utilized. Capacity utilization of plastic segment stood at 63.4 percent in 2022. High inflation, Pak Rupee depreciation, hike in electricity tariff and global commodity super cycle translated into 50.81 percent higher cost of sales in 2022. Gross profit grew by 36.86 percent year-on-year in 2022; however, GP continued to march down and was recorded at 17.82 percent in 2022. Distribution expense grew by 12.97 percent in 2022. This was on account of higher sales volume and hike in POL prices which pushed up freight charges. Higher export charges also pushed the distribution expense up in 2022. Increase in the number of employees from 2324 in 2021 to 2643 in 2022 drove the administrative expense up by 25.26 percent in 2022. ISIL posted net other income of Rs. 340.06 million in 2022 primarily due to massive exchange gain earned on export sales coupled with gain on sale of fixed assets as well as sale of scrap. Operating profit picked up by 98.85 percent year-on-year in 2022 with OP margin climbing up to 8.30 percent. Finance cost elevated by 103.83 percent year-on-year in 2022 due to multiple rounds of monetary tightening during the year and increased borrowings. Share of profit from associated companies posted a downtick of 64 percent in 2022. Furthermore, higher effective tax rate also played its role in diluting the bottomline growth in 2022. Net profit grew by 43.58 percent year-on-year in 2022 to clock in at Rs.2551.02 million with NP margin of 4.62 percent and EPS of Rs.38.44.
In 2023, the company attained an unsurpassed topline growth of 60.88 percent year-on-year to clock in at Rs.88,905.80 million. This came on the back of increased sales off-take, upward price revision to account for cost hike and also enhanced focus on export sales which rendered tremendous results amid Pak Rupee depreciation. Food sales grew by 76 percent in 2023; however, plastic sales posted 12 percent growth during the year. As of 2023, food sales constituted 83 percent of ISIL’s net sales mix. In accordance with the growing demand, the company enhanced its food processing capacity by 36,644 MT to 219,932 MT in 2023 and utilized 56 percent capacity. The capacity utilization of plastic segment ticked down to 54.16 percent in 2023. Region-wise sales data shows 22 percent year-on-year growth in local sales and a staggering 163 percent year-on-year growth in export sales. Export sales made up 45 percent of ISIL’s sales mix in 2023. The company successfully passed on the impact of cost spike to its consumers which resulted in 87.21 percent higher gross profit and an improved GP margin of 20.73 percent in 2023. Selling and administrative expense enlarged by 47.42 percent and 28.38 percent respectively on account of higher sales and production volumes, capacity enhancements, addition of flour mill to its business portfolio and also because of higher ocean freight charges due to hike in the prices of POL products. Higher export expense was also one of the reasons of elevated distribution expense owing to company’s inclination towards export sales. ISIL also greatly enhanced its advertising & promotion budget in 2023. In 2023, ISIL expanded its workforce by 410 employees to take it to 3053 employees. Tremendous net other income of Rs.1172.57 million recorded by ISIL in 2023 was primarily the result of hefty exchange gain recognized on account of export sales. Operating profit rebounded by 150.91 percent year-on-year in 2023 with OP margin jumping up to 12.94 percent. Finance cost grew by 211.14 percent year-on-year in 2023 on account of higher cost of borrowing and increased amount of external loans to finance CAPEX and working capital requirements. 97.65 percent rise in share of profit from associated companies also buttressed the bottomline which grew by 150.16 percent year-on-year in 2023 to clock in at Rs.6381.68 million with NP margin of 7.18 percent and EPS of Rs.96.17.
ISIL’s topline registered 22.47 percent year-on-year growth to clock in at Rs. 108,887.02 million in 2024. Local sales registered 49 percent growth while export sales posted 22 percent growth in 2024. Export sales constituted 40 percent of the company’s net sales mix versus 45 percent in the previous year. Category-wise sales show 40 percent growth in food segment and 19 percent growth in plastic segment in 2024. During the year, the company enhanced the capacity of its food processing segment to 298,356 metric tons and utilized 64.56 percent of its capacity. Capacity utilization of plastic segment was recorded at 56.48 percent in 2024. Changes in sales mix, higher sales volume, focus on export markets and upward price revision allowed ISIL to record 30.33 percent growth in its gross profit in 2024 with GP margin jumping up to 22.10 percent. Selling & distribution expense escalated by 17.41 percent in 2024 on the back of higher salaries, carriage outward, export expense and advertisement & promotion expense incurred during the year. Inflationary pressure culminated into 67.88 percent higher administrative expense in 2024 despite streamlining of workforce from 3053 in 2023 to 2923 in 2024. Net other income slid by 61.30 percent in 2024 due to considerably lower exchange gain as Pak Rupee started showing signs of resilience during the year. Operating profit strengthened by 25.48 percent in 2024 with OP margin attaining its highest level of 13.26 percent. Finance cost mounted by 67.84 percent in 2024 due to higher discount rate. Share of profit from associated companies rose by 46.35 percent in 2024. This particularly comprised of dividend received from Bank of Khyber. ISIL’s net profit dipped by 3.91 percent in 2024 to clock in at Rs.6132.049 million with EPS of Rs.92.41 and NP margin of 5.63 percent.
In 2025, ISIL’s net sales plummeted by 3.39 percent to clock in at Rs.105,192.60 million. This came on the back of 4 percent downtick recorded in food sales in 2025. This was on account of decline in the purchasing power of consumers due to prolonged period of high inflation. Conversely, plastic sales ticked up by 3 percent in 2025 due to resurgence in the industrial activity. Region-wise break-up of sales show that while local sales posted 13 percent growth in 2025, export sales deteriorated by 26 percent. Decline in export sales was on the back of higher international tariffs, lackluster consumer demand and increased competition in food exports business. Stability in the value of Pak Rupee also squeezed the value of export sales in Rupee terms. As of June 30, 2025, export sales constituted 30 percent of ISIL’s net sales versus its share of 40 percent in the previous year. In 2025, the company enhanced its food processing capacity by 18,060 metric tons to 316,416 metric tons. Capacity utilization of food processing segment clocked in at 63.77 percent in 2025. Plastic segment registered capacity utilization of 57.83 percent in 2025. Higher cost of sales on the back of elevated energy tariff resulted in 9.11 percent decline in gross profit in 2025. GP margin also fell to 20.76 percent in 2025. Selling & distribution expense grew by 10.54 percent in 2025 due to increase in the salaries of sales force, elevated advertisement & promotion budget and higher export expenses incurred during the year. Administrative expense inched up by 5.45 percent in 2025 due to higher travelling & conveyance charges as well as fee & subscription charges incurred during the year. Net other income ticked up by 2 percent in 2025 due to lesser profit related provisioning and higher income from short-term investments. ISIL recorded 21.81 percent decline in its operating profit in 2025 with OP margin ticking down to 10.73 percent. Finance cost tapered off by 31.65 percent in 2025 due to monetary easing. Conversely, outstanding borrowings increased during the year. Share of profit from Bank of Khyber (an associated company) posted 142 percent growth in 2025. ISIL’s net profit declined by 6.24 percent to clock in at Rs.5749.49 million in 2025. This translated into EPS of Rs.86.64 and NP margin of 5.47 percent in 2025.
Recent Performance (2026)
ISIL’s net sales dipped by 0.84 percent to clock in at Rs.104,303.89 million. While local sales improved by 30.60 percent to clock in at Rs.107,976 million in 2026, it was offset by 64.74 percent plunge in export sales which clocked in at Rs.12,595 million. Weaker export sales were the result of challenging macroeconomic environment in the global market and the closure of Afghan border. Cost of sales dipped by 0.32 percent in 2026, resulting in 2.86 percent contraction in gross profit. GP margin slightly dipped to 20.34 percent in 2026. Despite lower sales volume, distribution expense surged by 9.47 percent in 2026 due to elevated logistics expense and the company’s rigorous investment in brand building and market penetration. Administrative expense was contained by 0.36 percent in 2026. Lesser provisioning done for WWF and WPPF resulted in 9.85 percent thinner other expense incurred in 2026. Other expense was conveniently offset by 19.62 percent stronger other income recorded in 2026 which was the result of greater income from short-term investments, processing income and gain recognized on the sale of fixed assets. Operating profit deteriorated by 10.36 percent in 2026 with OP margin dipping to 9.70 percent. Finance cost plummeted by 7.55 percent in 2026 due to lower outstanding borrowings and lesser average borrowing rate. Share of profit from associated company also weakened by 36.92 percent in 2026. ISIL posted net profit of Rs.3954.49 million in 2026, down 31.22 percent year-on-year. This translated into EPS of Rs.59.59 and NP margin of 3.79 percent in 2026.
Future Outlook
Cognizant of ongoing challenges in the international markets, ISIL will continue to rely on its strategy of cost optimization, product diversification, and increased penetration in the local market to deliver impressive financial results. The company also plans the completion of Bisconni Middle East LLC in Abu Dhabi by the end of 2026 with the instigation of commercial operations from 2027. Besides, it is also expanding its solar power portfolio which will help contain its energy cost.