Feroze1888 Mills ( F.Y. 2024-25)

Executive Summary

Feroze1888 Mills Limited is one of Pakistan’s largest manufacturers of home textiles and health-care products. The firm has vertical integration operations, including manufacturing plants, which export its products to the USA, UK, and Europe. For the financial year 2024-25, the firm achieved stable performance amid economic uncertainty and increased expenses due to the adoption of efficient management strategies. Sustainability, innovation, quality production, and employee training are key elements of Feroze1888's strategy, known as “People, Planet, and Prosperity.”

Company Overview

Feroze1888 Mills Limited is a leading manufacturer and exporter of vertically integrated textile goods. Its products comprise household and health care products such as towels, bathrobes, blankets, kitchen towels, and patient gowns, among others. Feroze1888 Mills was founded in the early 1970s and has made a reputable name for itself across the globe through sales in countries such as the USA, the UK, and Europe. It operates advanced manufacturing facilities that use modern technology and emphasise quality, sustainability, innovation, and customer satisfaction.. The firm operates on its “3Ps” policy – People, Planet, and Prosperity.

Industry overview

The textile industry is one of Pakistan’s most significant sectors and a major contributor to exports and employment. The country’s textile industry produces a wide range of cotton-based products, with the majority of exports directed to the United States, the United Kingdom, and Europe. For instance, in the financial year 2024-2025, the company encountered challenges such as increased energy prices, inflation, cotton shortages, and intense competition from other countries including China, Bangladesh, and India.

Financial Performance (Rupees in 000’)

Particulars	2025	2024
Sales	66,110,531	69,757,601
Cost of sales	(57,070,815)	(57,925,400)
Gross profit	9,039,716	11,832,201
Administrative costs	(1,404,726)	(1,376,943)
Distribution costs	(4,616,779)	(5,062,989)
Other expenses	(202,359)	(564,144)
	(6,223,864)	(7,004,076)
Other income	883,893	555,227
Operating profit	3,699,745	5,383,352
Finance costs	(3,068,248)	(3,835,632)
Profit before income tax and final taxes	631,497	1,547,720
Final taxes	(678,440)	(966,316)
Profit before income tax	(46,943)	581,404
Income tax	145,966	(9,063)
Profit after income tax	99,023	572,341

Source :- Annual Report 2025 of Feroze1888 Mills

Key Financial Ratio

Particulars	2025	2024
Profitability Ratios
Gross profit ratio	13.67%	16.96%
Net profit to sales	0.15%	0.82%
Return on capital employed	9.27%	12.79%
Return on assets	0.12%	0.71%
Return on equity	0.29%	1.70%
Liquidity Ratios
Current ratio	1.05 Times	1.14 Times
Quick / acid test ratio	0.50 Times	0.63 Times
Cash to current liabilities	0.01 Times	0.03 Times
Activity / Turnover Ratio
No. of Days in Inventory	134 Days	113 Days
No. of Days in Receivable	84 Days	79 Days
No. of Days in Creditors	50 Days	42 Days
Operating Cycle	167 Days	150 Days
Investment / Market ratio
Earning per share - basic & diluted(PKR)	0.25	1.43
Dividend yield ratio( times)	-	-

Source :- Annual Report 2025 of Feroze1888 Mills

SWOT Analysis

Strengths

This company has a strong customer base and global market presence.

This company provides high – quality products and customer service.

This company focuses on sustainability and compliance.

Weaknesses

This company depends on natural resources.

This company has limited product diversity.

This company depends on a particular region for sales.

Opportunities

There is product diversification and value addition.

This company adopts energy – efficient technologies.

Threats

US tariff situation and its impact on retailers and suppliers.

Global geopolitics and its fall outs.

Inconsistent government policies for the textile industry.

Conclusion

Feroze1888 Mills Limited is one of the leading companies in Pakistan. This company is known for its quality products , strong global presence , and sustainable business practices. This company has challenges of economic and rising operational costs . During 2024-25 , the company has maintained stable performance through efficient management , innovation, and strong customer relationships. The company is also focused on sustainability , advanced technology , employee development , and operational excellence; this all will help the company achieve long – term growth and strengthen its position in the global textile market.