Islamabad, Apr 9, 2025: Data Agro Limited (PSX: DAAG), a prominent name in the agro-industrial sector, was established as a private limited company in 1992 and transitioned into a public limited entity in 1994.
Specializing in the production and processing of a wide range of agro seeds, the company also undertakes the delinting of cotton crops, positioning itself as a key player in Pakistan’s agricultural value chain.
Data Agro continues to strengthen its market presence through strategic ventures and innovations in seed technology.
Shareholding Structure
As of June 30, 2024, Data Agro Limited has 4 million shares outstanding, distributed among 2,200 shareholders. Individual investors hold the majority stake, comprising 45.99 percent of the shares, followed by the directors, the CEO, and their immediate families, who collectively own 41.24 percent.
Data Enterprises (Private) Limited, an affiliate of Data Agro Limited, owns 9.87 percent, while 1 percent of the shares are held by NIT and ICP. The remaining shares are spread across various shareholder categories.
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Performance Overview (2019-2024)
Data Agro Limited has experienced fluctuating results in recent years, with some downturns and significant growth phases.
Despite a slight dip in 2020 due to the global economic disruption caused by the COVID-19 pandemic, the company’s top-line showed steady growth, driven by its core business of seed processing and delinting services. However, the bottom line saw notable declines in 2022 and 2024.
In 2019, Data Agro Limited saw a 13.67 percent increase in revenues, reaching Rs.148.44 million, primarily due to higher sales from hybrid corn seeds.
Though costs increased, gross profits still rose by 12.53 percent, driven by better margins. In contrast, 2020 witnessed a modest 1 percent decrease in sales, attributed largely to the pandemic’s impact on seed demand.
However, the company managed a substantial growth in its net profit, which surged by 47 percent, owing to cost-saving measures and improved operational efficiency.
The year 2021 marked a recovery as Data Agro Limited experienced a 30.47 percent increase in revenues, driven by rising seed prices and demand.
Gross profits grew by 17.7 percent, although margins slightly contracted due to higher raw material costs.
By 2022, while total revenues grew by 5.74 percent, the company faced a sharp decline in net profit, primarily due to increased taxation and a challenging economic environment.
In 2023, Data Agro Limited saw a rebound, with net sales climbing by 7.67 percent, and significant improvements in operating profit and net profit margins.
In 2024, despite higher input costs, the company’s net sales surged by 67 percent, reaching Rs.362.31 million.
However, increased financing costs, due to the acquisition of short-term loans, impacted the company’s bottom line, leading to a decrease in net profit.
Recent Developments (1HFY25)
In the first half of FY25, Data Agro Limited encountered challenges, with net sales dipping by 2.45 percent to Rs.186.45 million.
This decline was due to a sharp drop in wheat crop prices, which affected the purchasing power of farmers.
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However, the company’s gross profit margin improved, reaching 14.69 percent, up from 11 percent in the previous year.
Operating expenses also saw an increase due to inflationary pressures. Despite the cost-saving measures, Data Agro Limited recorded a net loss of Rs.22.64 million in 1HFY25, a deeper loss compared to the previous year.
Future Prospects
Looking ahead, Data Agro Limited is strategically investing in new seed varieties of cotton, corn, and wheat, while also diversifying into vegetable seeds. These efforts aim to bolster the company’s core income streams.
Furthermore, the continued delinting and processing of seeds for third-party entities will contribute to additional revenue streams.
