Transmission of Annual Audited Financial Statements for the Year ended June 30, 2025

National Foods Limited

12/CL-6, Claremont Road

Civil Lines, Karachi 75530, Pakistan

https://www.nfoods.com

Annual Report 2025

Contents

About the Company

Our Story 05

Business Profile 06

Geographical Presence 07

Founders' Philosophy 09

Vision & Mission 10

Core Values 10

Code of Ethics & Business Practices 11

Awards & Certificates 13

Our People 15

Our Manufacturing Excellence 20

Supply Chain Overview 24

Customer Relations Management 25

Brands and Campaigns 26

Technological Developments 31

Health, Safety and Environment 32

National Foods DMCC 34

Innovation, Research and Development 38

E-commerce Department 40

Food Services Division 42

Stakeholders' Information

Corporate Organisational Chart 47

NFL Organisational Chart 48

NFL Subsidiaries Organisational Chart 49

Factories & Offices 50

Company Information 51

Global CEO's Message 53

Corporate Governance

Role of the Board of Directors 57

Our Board Composition 58

Changes in the Board Composition 59

External Search Consultancy - 59

Appointment of Directors

Directors' Profiles 60

Board Meetings 67

Board Committees 70

Corporate Governance 72

Management Committee 75

CSR & Sustainability

Sustainability & CSR 79

Business Review

Chairman's Review 85

Directors' Report 89

Financial Review

DuPont Analysis 107

Financial Ratios 108

Financial Statement at a Glance 109

Financial Highlights 111

Horizontal Analysis 117

Vertical Analysis 118

Summary of Cash Flow Statement 119

Six Year Cash Flows Using Direct Method 120

Statements of Value Added & its Distribution 121

Consolidated Statement of 123

Profit or Loss and Other Comprehensive Income Consolidated Statement of Financial Position 124

Consolidated Statement of Cash Flows 125

Financial Report

Statement of Compliance 131

Independent Auditor's Review Report 134

Independent Auditor's Report 135

Unconsolidated Financial Statements 139

Consolidated Financial Statements 201

Others

Engagement with Stakeholders 275

Shareholders' Information 277

Pattern of Shareholding 279

Pattern of Shareholding Report 281

Pattern of Shareholding 282

Key Shareholding & Shares Traded 283

Trading in Shares by Directors and Executives 286

Notice of Annual General Meeting 287

Form of Proxy 297

E-Dividend Mandate Letter 299

Standard Request Form 300

Enriching Lives Beyond Borders

This year's Annual Report centers on Enriching Lives Beyond Borders. From local kitchens to global tables, National Foods continues to unite cultures through flavour, evolving beyond spices into innovative food solutions.

With every product, National Foods aims to create experiences that transcend boundaries, setting new benchmarks as a global food leader.

Progress Beyond Borders

National Foods' Drizz'l sauces to pioneer initiatives such as the Supply Chain College and recognition through global sustainability awards, every milestone reflects our promise to shape culinary

culture, empower people, and enrich lives beyond borders.

03 | About The Company Annual Report 2025 | 04

lifestyles with integral values.

The structure comprises ATC Holdings as the

In 2017, National Epicure Inc. Canada made a

For over fifty years, National Foods Limited (NFL) has combined heritage, innovation, and passion to enrich lives and impact millions of people. At the heart of the future, NFL's focus remains on pioneering the industry with an intentional culture of excellence and innovation.

Founded in 1970 as a spice company, it continues to evolve. Pioneering the industry as a leading multicategory food company, NFL has innovated and grown with eating, cooking and shopping habits of consumers.

With three state-of-the-art manufacturing facilities, including the largest production plant in Faisalabad, NFL offers hundreds of products across multiple categories - enabling local and international consumers to enjoy traditional dishes and tastes.

Exporting to more than 40 countries across 5 continents, NFL has subsidiaries in the UAE, UK, and Canada. The company remains committed to highest quality underpinned by innovation, taking pride in multiple international certifications to uphold the highest standard products and operations.

parent company, with its subsidiary National Foods Limited, specialising in offering convenient, healthy, and delicious food choices. To enhance global presence, National Foods DMCC, a Dubai-based subsidiary formed in 2012 for the Middle East, has helped expand our global footprint.

National Epicure Inc. Canada, National Epicure Inc. USA, and National Foods Pakistan UK Limited help us in strategically serving North American and European markets.

significant move by acquiring 60% stake in A-1 Bags and Supplies Inc., a company situated in Canada. A-1 Bags and Supplies Inc. specialises in the distribution of restaurant, industrial, and retail supplies.

Note: Refer to the note 47.2 of the Consolidated Financial Statements.

05 | About The Company Annual Report 2025 | 06

Offices/Entities

Continents

Countries

Distributors

07 | About The Company Annual Report 2025 | 08

Creating food that enriches the lives of people everywhere.

• Through building a reliable brand, National Foods must get itself recognised as a leader in Pakistan and abroad.

• National Foods must focus on customer needs and serve them with quality products that conform to international standards & local standards.

• We must strive to be leaders in all the brands that we produce.

• Our research must continuously produce new and well-researched, innovative products to promote health and nutrition.

  
  
  

• We must prove ourselves to be good corporate citizens, support charitable causes for betterment and focus on Triple Bottom Line for People, Planet and Profits.

• Projects to be identified and initiated that contribute to the economy of Pakistan positively.

• Reserves must be built, new factories created, sound profits made, and fair dividend should be paid to our stockholders.

• We must create an environment in our offices and factories where talent is groomed, and people have every opportunity to advance in their careers.

• With the help of Almighty Allah, the company can achieve its targets in times to come.

We will achieve our vision by designing and manufacturing food and related products, conforming to international standards and guidelines for nutrition, health, wellness and quality, bringing joy and happiness to people everywhere.

Passion

Customer Centric

Teamwork

Excellence in Execution

Ownership

09 | About The Company

Go Above & Beyond

Prioritise Customer Experience (Internal & External)

Trust Each Other & Achieve Together

Lead, Commit & Deliver the Best

Own It & Deliver It

Annual Report 2025 | 10

1. Compliance

   Every employee bears personal responsibility for adhering to all applicable laws and regulations.

2. Anti-Bribery & Fair Practices

   Strictly prohibit bribes, kickbacks, or unethical

   B. Dealing with External Parties

   Fair, transparent engagements with customers, suppliers, and communities. Integrity in all contracts and disclosures.

   C. Safe Working Environment

   Upholding Ethics, Responsibility, and Excellence

   Our Code of Business Conduct embodies our founders' vision and lives through our values: Passion, Customer Centricity, Teamwork, Ownership, and Excellence in Execution. It serves as the bedrock of our uncompromising commitment to:

   √ Ethical Business Practices That Define Our Legacy

   √ Regulatory Compliance That Safeguards Our Future

   √ Responsible Corporate Citizenship That Extends Beyond Our Operations

   Our Code in Practice

   This code applies to all who represent NFL -employees, directors, business partners, and suppliers alike. Approved by our Board of Directors, its

   implementation is actively monitored by our Governance, Risk & Compliance function to ensure consistent application across all operations.

   Our Pillars of Responsible Conduct

   A. Code of Business Conduct

   1. Conflict of Interest

      Immediately disclose and address any business or personal conflicts that may compromise impartial decisions. The company prohibits all actions conflicting with NFL's interests.

   2. Confidentiality

   Protect all confidential information, including intellectual property (patents, trade secrets, formulations), sharing only on a need-to-know basis. This obligation continues post-employment, enforced through NDAs where required.

   inducements in any form. Extravagant gifts/entertainment may lead to disciplinary action.

3. Product Safety & Quality

   Uphold our brand promise through safe, high-quality products that consumers trust at every production and distribution stage.

4. Against Child Labor & Abuse of Human Rights

   Maintain workplaces free from child labor and

   exploitation, ensuring equality and respect across all operations and partnerships.

5. ESG Commitment

Operate responsibly by minimizing environmental impact, optimizing resource efficiency, and maintaining strong governance aligned with global sustainability standards.

Inclusive, harassment-free spaces ensuring physical/mental safety.

D. Safeguarding Company Property

Responsible use and protection of all assets-physical and digital.

E. Upholding the Code

Managers lead by example, while all stakeholders share accountability - reinforced through training, reporting mechanisms, and disciplinary actions.

Speak-Up Culture & Whistleblowing

We empower ethical courage through:

• Confidential Reporting: Fraud, corruption, harassment, or policy breaches

• Non-Retaliation: Protection for good-faith disclosures

• Oversight: Investigations with leadership/Board escalation

The full Code of Business Conduct and a link to report ethical concerns are available on our website.

11 | About The Company Annual Report 2025 | 12

Certification standards are integral to maintaining and demonstrating an organisation's commitment to quality, safety, and ethical conduct.

Operating across three key locations, Port Qasim, Faisalabad, and Nooriabad, National Foods takes great pride in adhering to these certification standards to ensure excellence in its operations. The following section highlights the significance of each certification and the value it brings to the organisation.

ISO 45001:2018 &

SMETA (SEDEX Members Ethical Trade Audit)

The SEDEX (Supplier Ethical Data Exchange) SMETA certification emphasises ethical trade practices, covering labor standards, health and safety, environmental sustainability, and business integrity. National Foods has attained SEDEX SMETA certification at its Port Qasim and Nooriabad facilities, showcasing its commitment to responsible sourcing and ethical supply chain management. This achievement has enhanced National Foods' credibility, fostering stronger relationships with customers, suppliers, and stakeholders while promoting sustainable and ethical business practices.

FSSC 22000 (Version 6)

FSSC 22000 (Food Safety System Certification) Version 6 is a globally recognised standard that integrates ISO-based food safety management requirements with additional industry-specific elements. National Foods' Faisalabad Plant has achieved this prestigious certification, reflecting its commitment to maintaining the highest levels of food safety and operational excellence. This certification reinforces the plant's capability to produce safe, high-quality, and compliant products, strengthening customer trust and supporting its position in both local and international markets.

BRCGS Issue 9

The BRCGS (Brand Reputation Through Compliance Global Standards) Issue 9 certification sets stringent requirements for food safety, quality, and operational excellence, emphasising a strong food safety and quality culture. National Foods has successfully attained this certification at its Port Qasim (PQ) and Nooriabad (NBD) facilities, showcasing its commitment to maintaining the highest standards in food processing. This achievement strengthens customer confidence by ensuring safe, high-quality, and reliable products.

Halal Certifications

National Foods has secured local and International Halal certifications, including Halal PS 3733, MS 1500, GSO 2055-1, and MUIS, across all its facilities. These certifications affirm the company's strict compliance with Islamic dietary laws and highlight its commitment to providing authentic Halal-certified products. By adhering to globally recognised Halal standards, National Foods has significantly expanded its market presence, catering to the diverse needs of consumers seeking Halal products. This dedication to Halal compliance reflects the company's unwavering focus on quality, safety, ethics, and customer satisfaction. Through these certifications, National Foods has strengthened its reputation as a trusted and responsible brand, fostering strong relationships with customers, suppliers, and stakeholders while consistently delivering safe and high-quality products.

ISO 14001:2015

ISO 45001:2018 is a globally recognised standard for occupational health and safety management systems, while ISO 14001:2015 focuses on effective environmental management systems. National Foods has implemented both standards across all its facilities, demonstrating its commitment to employee safety, well-being, and environmental sustainability. Adherence to these standards has helped minimise workplace hazards, reduce accidents, manage environmental impacts responsibly, and enhance overall operational efficiency and productivity.

ISO 9001:2015

ISO 9001:2015 is an internationally recognised standard for quality management systems, focusing on processes that ensure consistent product quality and customer satisfaction. National Foods has successfully implemented this standard across all its facilities, streamlining operations, strengthening customer confidence, and driving continuous improvement in its products and services.

YUM - KFC

The YUM Quality System Assessment (QSA) audit ensures food safety, quality, and operational excellence. National Foods Faisalabad plant successfully achieved YUM QSA certification at its Faisalabad Plant for KFC supply, demonstrating compliance with global standards. This milestone highlights National Foods commitment to delivering safe, high-quality products, strengthening its credibility as a trusted partner in the international foodservice industry.

Costco Wholesale

Costco Wholesale audit emphasises product safety, quality assurance, and ethical sourcing practices to meet the expectations of global retail standards. National Foods successfully attained Costco Wholesale certification at its Faisalabad Plant, demonstrating compliance with stringent food safety and quality protocols. This achievement reflects the commitment to responsible manufacturing, customer satisfaction, and maintaining strong relationships with international retail partners like Costco.

13 | About The Company Annual Report 2025 | 14

Capability Building

Forwards Program - Building the Future

In collaboration with Commercial Leadership, we launched the Forwards Program-a strategic initiative designed to cultivate the next generation of leaders. The program combines structured learning modules, one-on-one mentoring, and cross-functional exposure to core areas of the business. By investing in high-potential talent, we are strengthening our leadership pipeline and ensuring sustainable business growth.

Career Framework

This year, we strengthened our people strategy through key initiatives, including the launch of Career Frameworks across three core functions. These frameworks provide clarity on role-specific competencies and career pathways, supporting internal mobility, strategic workforce planning, and succession development. Expansion across the organisation is planned in the coming phases.

Talent Review Mapping

This year's Talent Review Meetings covered all functions and grade levels, using a structured approach to assess potential, role readiness, and future growth opportunities. These sessions play a key role in succession planning, talent mobility, and long-term capability development.

Culture & Diversity

Ibtida Launch - Female Trade Apprenticeship

Advancing Inclusion and Culture

Over the past year, National Foods strengthened its commitment to inclusion with impactful initiatives. The Ibtida Apprenticeship Program was a key milestone, successfully integrating women into manufacturing roles at our Faisalabad plant. This effort was complemented by gender sensitisation workshops, fostering a more inclusive and supportive workplace culture.

Gender Equality & Wellbeing

• Aligned with SDG 5, we hosted female leadership training with the Pakistan Business Council to empower women across industries.

• Our engagement survey insights led to a Mental Health Awareness campaign and enhanced family-friendly policies, including greater flexibility and childcare support.

• Cultural celebrations like Women's Day, Interfaith Harmony Week, and Pinktober reinforced our inclusive, people-first culture.

  Glint - Your Voice 2025

  Post the results of the annual Glint Engagement Survey, we conducted a comprehensive analysis of the Glint engagement survey results. The findings were shared with leadership and focus group discussions were conducted to address key areas in efforts to enhance overall employee engagement.

  15 | About The Company Annual Report 2025 | 16

  Talent

  New Joiner Connects

  Launched this year, the First Steps Forum is a quarterly engagement platform for new joiners. It fosters connection, encourages feedback, and invites fresh perspectives to enhance the onboarding experience, ensuring new employees feel heard and supported from the start of their journey at National Foods.

  Trailblazer Program

  As part of our ongoing focus on talent acquisition at the stage of early careers, this year we strengthened our efforts to attract top talent for the Trailblazer Program 2025. We conducted campus drives and participated in career fairs across 11 diverse universities in Pakistan, engaging directly with students and introducing them to the impactful opportunities offered through our Flagship Trailblazer Program. These efforts played a pivotal role in strengthening our early careers talent pipeline and reinforcing our brand presence across leading academic institutions.

  
  
  

  Diversity

  Gender Pay Gap Statement

  Following is gender pay gap calculated for the year ended 30 June 2025. Mean Gender Pay Gap: -16%

  Median Gender Pay Gap: -15%

  17 | About The Company

  Learning & Development

  My Learning Journey

  In line with our Founders' Philosophy, we advanced our capability agenda through the My Learning Journey initiative-promoting blended learning across functional, leadership, and future-ready skills. Employees engaged in diverse formats, from on-the-job learning to digital platforms, aiming to future-proof our workforce and drive innovation.

  
  
  

  Learning Interventions

  In FY25, we introduced focused learning programs across leadership, ESG, workplace safety, and functional development.

• Navigating Difficult Conversations empowered employees to approach high-stakes dialogue with empathy, reinforcing a culture of psychological safety and feedback.

• Leading with Speed of Trust helped leaders build trust as a core skill, accelerating execution and enhancing team performance.

• Sales Basecamp Program elevated frontline capabilities through hands-on learning and coaching, driving stronger distributor engagement across regions.

Annual Report 2025 | 18

Internal Trainings

Unlock the Power of SuccessFactors

Led by Muhammad Faisal, an HR expert, this training on SuccessFactors Operations focused on core functionalities and the importance of timely data updates for operational excellence.

Integrated Pest Management (IPM) Training

The training equipped our team with essential knowledge and practical skills for effective pest control, promoting sustainability and operational efficiency.

Leadership

Leadership Advantage Program (LAP)

Wastage Reduction Techniques

Led by Shehroz Khalid and Muhammad Qamar Ansari, this training empowered our team with practical skills to optimise processes and foster a lean, cost-effective workplace.

Port Qasim Plant

Quality & HSE Compliance

National Foods' Port Qasim Plant maintains the highest standards of quality, food safety, environmental sustainability, and workplace safety. Built on integrated management systems, it ensures regulatory compliance, strengthens consumer trust, and supports global market expansion, validated through the certifications below:

The Leadership Advantage Program embedded flexibility, emotional intelligence, and innovation into decision-making, creating empowered leaders who drive transformation.

Leadership Connects

An initiative that enables senior management to engage directly with our people across multiple locations, fostering appreciation, boosting morale, and reinforcing a culture of collaboration and motivation.

BRCGS Issue 9

ISO 14001 and

45001 Certification

ISO 9001

Certification

SEDEX

Certification

ISO 17025

Certification

Halal PS 3733, MS 1500

(Malaysia), GSO, and MUIS

National Foods has secured local and international Halal certifications, including Halal PS 3733, MS 1500 (Malaysia), GSO, and MUIS. Halal certification ensures compliance with religious requirements and expands market access in Muslim-majority regions.

Operational Excellence

Port Qasim Plant has successfully delivered production volumes in the recipe, desserts, and pickles categories, supporting the business to meet its financial targets through safe operations, quality assurance, and improved productivity compared to our previous performance trends.

Furthermore, Port Qasim has undertaken several projects to improve its safety & quality standards & compliance, as well as launching new product initiatives to support commercial & business needs. Some of these key projects are listed on the next page:

19 | About The Company Annual Report 2025 | 20

Addition of X-Ray Machines for Inspection of Contamination

As part of National Foods' strong commitment to deliver defect-free products and maintain the highest GMP and quality standards at manufacturing plants, X-ray machines have been installed to inspect packed products for Recipe Sachets and Pickle Jars. This advanced equipment, imported from Japan and Germany, is operational and effectively identifies and separates units for any suspected foreign contaminants such as metal, stone, or plastic.

Nooriabad Plant

Quality Management System

At the Nooriabad plant, we have implemented a robust Quality Management System that consistently upholds the highest standards of quality, food safety, environmental sustainability, and workplace safety. Through a structured Quality Assurance approach, we have earned consumer trust, ensured regulatory compliance, and supported our expansion into global markets. The Nooriabad plant holds several notable certifications, including:

SEDEX

Halal PS 3733, MS 1500

ISO 9001

ISO 14001 and

Flooring Upgradation of the Mixing Shop Floor

To improve shop floor GMP condition and compliance, a successful PU flooring project was carried out in the recipe Mixing Section. The project was carefully planned and executed in phased shutdowns, ensuring zero product supply disruptions despite taking more than 70 days to complete.

Certification

(Malaysia), GSO, and MUIS

Certification 45001 Certification

Export Sauces Production at Port Qasim Plant

In FY24-25, successful commercial production of Export Sauces was carried out at PQ Plant, meeting all production targets set for FY25. The launch featured newly designed bottles and labels with a unique visual identity. To support this, a labeling machine was introduced, along with a laser printer

AA+ Rating in BRC Audit

Nooriabad Plant successfully achieved an AA+ rating in the unannounced BRC audit conducted in November 2024. This rating is the highest level of certification under the globally recognised BRC (British Retail Food Safety Standard) and demonstrates our robust manufacturing systems, consistent quality practices, and strong commitment to food safety.

Operational Excellence

BRCGS Issue 9

that printed customer-specific information directly onto the label, ensuring efficiency, accuracy, and premium presentation.

Automatic Labeling Machine

Sustainability through Water Conservation in the Pickle Washing Section

One of the most water-intensive steps in pickle manufacturing is washing brined fruits and vegetables. At our plant, an innovative design modification in the chili washing equipment now enables water recycling-reducing water usage for chili washing by 80%. This sustainable practice reflects our commitment to a greener, more responsible future.

The Nooriabad Plant has strengthened its commitment to operational excellence by continuously enhancing safety, quality, and efficiency-delivering strong results aligned with our financial goals.

In FY 2024-25, RM salt wastage dropped from 7.7% to 4.1%, driven by improvements such as better particle sizing of incoming salt, covered conveyors to reduce spillage, and SPC controls for accurate 800g fills. Salt packaging material wastage was also reduced by 90% year over year.

These focused initiatives have significantly reduced losses over the past six months, reflecting our ongoing drive for continuous improvement.

Faisalabad Plant

Quality Management System

At the Faisalabad manufacturing facility, we are proud to mark the beginning of an ambitious journey toward operational excellence, innovation, and inclusive growth. The Faisalabad Plant has been designed from the ground up to meet

21 | About The Company Annual Report 2025 | 22

advanced global food safety standards, ensuring strict compliance with top-tier international requirements. Certified with FSSC 22000 (Version 6), ISO 22000, ISO 9001, and both local and international Halal accreditations, it is a trusted partner for leading QSRs and major retailers. FSSC, HALAL, YUM, QMS, FSMS, ISO, OHSAS, and SEDEX audits were successfully conducted at the Faisalabad plant. These achievements are a testament to the plant's robust systems and disciplined execution.

At National Foods, supply chain has evolved into a strategic enabler of operational excellence, resilience,

through warehouse network consolidation enabling more sustainable transportation and productivity

YUM! Certification FSSC 22000 Version 6

ISO 22000:

2018

ISO 9001:2015

and value creation. During FY2024-25, the function delivered strong results through enhanced planning integration, warehouse consolidation, supplier collaboration, and targeted cost-to-serve efficiencies.

A strong focus on Free Cash Flow, driven through a "Lean Initiative" by partnering with Finance, Manufacturing,

savings. To drive focus and accountability, the PDCA (Plan, Do, Check, Act) methodology was implemented across all supply chain functions. A twelve-month master plan with clear KPIs, deliverables, and ownership was structured across four quarters.

On capability building, a two-day Supply Chain College

Costco Wholesale

Halal PS 3733, MS 1500

(Malaysia), GSO, and MUIS

Operational Excellence

ISO 45001

Certification

Quality Assurance, and key suppliers, delivered exceptional results. It will further allow NFL to explore new solutions and technologies. In parallel, focus on Non-Performing Inventory (NPI), supported by leadership timely decision-making, reducing cash blockages.

A key milestone was the integration of Local and International Division planning which has significantly improved our service for export division. The Sales & Operations Planning (S&OP) cycle was transformed from

was organised to develop future leaders, providing a 360° view of the supply chain reinforcing our belief that capability building is the foundation of progress. The team structure was further optimised in partnership with HR, and role rotations to grow talent and prepare them to become future CEO-ready leaders.

Looking ahead to FY2025-26, we plan to transition towards renewable energy for our manufacturing plants, greater focus on export supply chain

With a strong focus on operational excellence, the plant consistently delivers safe, high-quality products. Its robust Quality and Compliance framework strengthens credibility across local and global markets.

Through structured initiatives across safety, quality, performance, and people development, we continue to raise the bar across all areas of manufacturing. These endeavors resulted in significant improvements across Quality, HSE & Financial compliances, cost & productivity horizons throughout FY25. Raw & packaging materials wastage reduction was another major achievement, as depicted in the trend below:

a monthly to a quarterly cycle, giving suppliers extended visibility and allowing NFL to replenish against a true demand. These changes enhanced inventory alignment across our partners and internal teams.

We achieved a significant reduction in lead time

optimisation, and continue improving our Cost-to-Serve for both export and local business. This will be achieved by emphasis on system dependence, new ways of working, and the creation of written operational standards company-wide.

Plant Wastages Trend FY25

2.13%

1.95%

1.01%

1.15% 1.15%

0.80% 0.75%

0.65%

0.74% 0.73%

0.62%

Key enablers for this transformation are:

• Focused Group Discussions On High-performing Culture

• Nomination Of Champions For Each KPI

• Productive Engagement With Shop-floor Employees

• Improved The Visibility Of KPIs At The Shop Floor Level

• Daily & Weekly Monitoring

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

23 | About The Company

• Structured Maintenance Approach

Annual Report 2025 | 24

Rigorous

Customer Experience

Growth-Efficient Systems

CREATE

WITH SALESFORCE

Recipe Mixes

At National Foods, Customer Relationship Management (CRM) initiatives are strategically designed to build meaningful, long-term relationships with our consumers. CRM serves as a powerful bridge between our brand and its audience, enabling us to personalise experiences, resolve concerns proactively, and drive loyalty through data-driven decision-making. In FY25, we expanded and deepened this commitment across multiple platforms and touchpoints.

We significantly enhanced our understanding of consumer behaviour through large-scale activations and shopper marketing campaigns. Our consumer profiling base grew from 13,000 in FY24 to over 66,000 in FY25. This scale-up enables more tailored communications and better alignment of product offerings with customer preferences.

Salesforce Dashboard

Khatoon-e-Khaas Loyalty Program

As part of our flagship loyalty initiative, the Khatoon-e-Khaas program witnessed remarkable growth, from just over 200 women in FY24 to over 1,200 active members across Pakistan in FY25. To support this expansion, a comprehensive loyalty dashboard was launched to centralise performance tracking, engagement metrics, and loyalty point allocation based on referrals and meaningful community participation.

National Foods also hosted an exclusive Khatoon-e-Khaas Iftar, bringing together 500 homemakers for an interactive, experience-driven evening. Focused on two-way dialogue and hands-on experimentation with our products, the event encouraged participants to share ideas, explore new flavours, and connect over a shared passion for cooking in the presence of our much-revered Shireen Anwar. This initiative reinforced NFL's commitment to fostering genuine community engagement and driving culinary innovation.

25 | About The Company

To ensure effective communication and prompt issue resolution, the Salesforce dashboard was launched as a centralised hub for managing customer dialogue. In FY25, over 900 customer cases, spanning queries, complaints, and feedback, were successfully addressed. Moreover, the integration of the Customer First portal with Salesforce has created an end-to-end ecosystem for handling internal product quality and claim-related cases, enhancing both transparency and efficiency.

Advanced Outreach

Lastly, the National Foods official chatbot was successfully migrated to the NFL Hotlink number in FY25. This move ensures greater accessibility for our consumers and leverages automation to handle common queries, thereby enhancing the overall customer experience while maintaining a human touch where needed.

National Foods recipe mixes achieved a significant milestone, driven by strong double-digit growth and maintaining its leadership in the Recipe Mixes category. The year's growth was fueled by strengthening the core portfolio, driving innovation, and expanding the Karachi Khaas Range in key markets. In response to evolving consumer preferences, National Foods introduced 12 new variants and 26 SKUs, bolstering shelf presence in Modern Trade. The "Kya Khayal Hai" campaign, supported by impactful commercials, reinforced brand equity and boosted recall. The Kya Khayal Hai campaign positioned food as a language of care, using a simple phrase to invite emotional connection. By showcasing relatable family moments and linking them to new variants, it deepened resonance,

expanded repertoire, and strengthened National Foods' visibility, cementing its place as a trusted household staple.

The Karachi Khaas range, a key growth driver, saw strong results from in-store activations, consumer promotions with Tapal, and targeted digital campaigns. Strategic interventions in Modern Trade, including collaborations with Imtiaz stores across Karachi, Lahore, and Islamabad, generated trials for Bombay Biryani Karachi Khaas.

National Foods maintained its focus on product quality and consumer trust through continuous testing. By consistently evolving to meet consumer needs, the company is well-positioned for sustained growth and deeper brand loyalty.

Annual Report 2025 | 26

National Ketchup

In 2025, National Ketchup achieved a significant milestone, becoming the second brand in NFL's portfolio to surpass the Rs. 10 billion mark, driven by strong double-digit growth. This performance was propelled by strategic initiatives aimed at becoming Pakistan's preferred ketchup brand.

Ramzan served as a key growth driver, supported by impactful consumer engagement, trade activations, and emotional storytelling. Price-off promotions across all pouch formats improved affordability, while in-store activations, sampling, and ambassador interactions boosted conversions. Regional efforts in Sargodha and Faisalabad deepened market penetration. National Ketchup also enhanced its presence with partnerships in the Food Services sector and outdoor visibility in Karachi.

Drizz'l Sauces

In 2025, National Foods launched Drizz'l, marking its bold entry into the Novelty Sauces category. This was the company's first new category launch since 2017, featuring 5 globally inspired sauces: American BBQ, American Hot Sauce, Portuguese Peri Peri (Medium), Thai Sriracha, and Red Italian Sauce. Designed to drive awareness and trials from day one, the launch was strategically executed across digital, on-ground, and in-store touchpoints.

Drizz'l targets Gen-Z and young millennials with a bold persona, encapsulated in the tagline #NotYourBasicSauce. The brand's digital-first campaign featured a consumption content series highlighting the versatility of its BBQ and Hot Sauce variants, reaching audiences across various platforms and in Karachi, Lahore, and Islamabad.

Digitally, the brand ran two major campaigns, including the "Zaiqa Mil Bethnay Ka" thematic videos and a co-branded animated series with Chiragh, engaging families and younger audiences. Purpose-led initiatives, such as Ramzan iftar events and charity drives, also reinforced the brand's community impact.

In response to inflation, a nationwide price-off promotion in September helped drive sales and maintain competitiveness. To close the year, National Ketchup executed its largest modern trade activation, amplifying brand visibility in metro cities.

The Ketchup Champs IMC campaign further engaged consumers through large-scale school activations, celebrity involvement, and personalised CRM-driven content delivered through Khatoon-e-Khaas, deepening emotional connections with moms.

The brand activated key mega events with live sampling, partnered with lifestyle platforms to engage target consumers, and strengthened retail presence in modern trade and large-format groceries. An in-store Brand Ambassador program and impactful POS materials further reinforced visibility in priority markets.

These efforts built strong early momentum for Drizz'l, redefining National Foods' approach to new brand launches with a consumer-first strategy and integrated touchpoints.

National Pickle

National Foods continues to dominate the Pickle category with a diverse portfolio across multiple formats and variants. This year's growth was driven by a dual strategy: increasing awareness and trial for Crushed Pickle while strengthening the core pickle range. This approach delivered incremental volume and helped maintain leadership in traditional formats while enhancing relevance in the modern segment.

To build top-of-mind equity, the brand launched the "Crush It Sohneya" digital campaign, targeting younger audiences with bold messaging. Influencer collaborations and content partnerships with Mashion and Commons featured Crushed Pickle in fusion recipes like Achari Macaroni and Pickle Dumplings, reinforcing its versatility as a contemporary condiment.

A key growth driver was Crushed Pickle's trial agenda, with nationwide sampling, bundling, and integration into restaurant menus during Ramadan. Sampling at snacking and breakfast hotspots in Karachi, Lahore, and Islamabad, along with cross-category bundling in modern trade and focused promotions in Faisalabad, further boosted trials. Consumer promotions also drove core portfolio volumes through price-offs on Mixed and Mango Pickle 370g and Ramadan bundles pairing Crushed Pickle sachets with Mixed Pickle jars, reinforcing seasonal consumption and encouraging trial.

FY25 marked a successful year for the Pickle portfolio, driven by bold innovation, strong digital storytelling, and widespread sampling. The brand remains focused on deepening household penetration, expanding format relevance, and maintaining leadership across both traditional and emerging segments.

27 | About The Company Annual Report 2025 | 28

National Custard

Capitalising on Key Seasons

National Custard focused on key seasons through a multi-channel activation strategy. We executed sampling initiatives, distributing custard-sachet bundles (paired with sugar) in major LMTs across Karachi, Lahore, and Islamabad, along with sachets distributed through major e-commerce platforms. The Digital Campaign was amplified through top-tier influencers during the Eid al-Adha buying cycle. To drive in-store conversion, we implemented AR-based spin-the-wheel activations at LMTs, rewarding custard purchases with instant prizes to encourage trial of the product.

National Mayonnaise

'Spread it, Dip it, Love it!'

National Mayonnaise executed an Integrated Marketing Communications (IMC) campaign to amplify brand visibility. As part of this initiative, National Foods leveraged the high-engagement ICC Champions Trophy 2025, which contributed greatly to the overall reach of the campaign. The digital media campaign across major digital platforms drove high traction. Premium OOH (out-of-home) sites were also placed across Pakistan. The campaign further integrated retail touchpoints through in-store brand ambassadors and on-shelf branding across key modern trade outlets. These initiatives helped in building awareness of National Mayo across KLI with its relevant customer base.

National Jams

Recipe for Summer Relevance

Traditionally seen as a breakfast product, National Jams tapped into the nationwide heatwave by launching Jam-based drinks-introducing consumption beyond breakfast. Through its "Summer Jams" campaign, the brand shared five refreshing drink recipes and partnered with macro-influencers to showcase versatility; targeting families and Gen Z during peak summer.t

29 | About The Company

Launching IMMERSE

A Bold Leap Toward Consumer -Centricity

At National Foods, great decisions begin with deep understanding. Immerse is the company's initiative to bring the voice of the consumer directly into the room-not just as data, but as lived experience. Powered by over 50,000 surveys and 400+ qualitative connects, including on-ground immersions, in-home visits, and digital touchpoints, the program enables cross-functional teams across the whole organisation to champion consumer centricity at every step. It helps build empathy, challenge assumptions, and ensure that the

consumer remains central to how the organisation thinks, plans, and innovates.

As consumer behavior becomes increasingly dynamic and complex, Immerse continues to evolve. National Foods has integrated AI tools to analyse conversations, expressions, and feedback across millions of touchpoints, uncovering hidden insights, emerging sentiment patterns, and unmet needs that might otherwise go unnoticed. This powerful blend of human connection and intelligent analytics is driving faster, sharper, and more relevant decisions. With Immerse, National Foods is not just running a program-it is cultivating a future-ready mindset that keeps the company meaningfully connected to the people it serves.

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Grounded in purpose and powered by technology,

Perfect Store Portal Enhancing Retail Execution

The Perfect Store Portal provides centralised visibility into commercial activities, new product launches, and competitor price analysis. By integrating key resources,

National Foods accelerated its journey of transformation, simplified complexity, unlocked efficiency, and created meaningful impact across every part of the business. At the heart of this progress is the power of collaboration and commitment to excellence across teams.

Unlocking Trade Liquidity - Wisaaq Integration

National Foods became the first FMCG in Pakistan to integrate Shariah-compliant financing digitally through Wisaaq, enabling seamless liquidity for distributors, improving working capital, and driving sales. Jointly led by Finance and Sales, and developed with partners including NFL DDT, Haball, and EY, this innovation reflects National Foods' commitment to digital leadership and commercial growth.

E-Invoicing Compliance - SAP x Haball x FBR

National Foods has implemented real-time e-invoicing integration between SAP, Haball, and FBR, enabling QR-coded digital validation. The system eliminates manual submissions, reduces compliance risk, enhances processing speed, and ensures audit-ready, paperless operations with minimal IT support.

Global Agility - International Division

market insights, and performance data, it has accelerated decision-making and enhanced consistency in retail execution. With a focus on Perfect Execution Every Day, Everywhere and increasing Share of Shelf, region-specific subsites are being developed to enable localised insights and targeted content delivery.

Salesforce CRM Integration Enhances Customer Engagement

Driving National Foods' Customer First strategy, Salesforce is now live as central CRM, fully integrated with internal portals and the Quality system. This seamless setup cuts complexity, boosts responsiveness, and gives teams a 360° view to act faster and smarter.

Covering Sales, Marketing, QAQC, Manufacturing, IRD, and more, this zero-cost integration unlocks real-time insights and turns customer feedback into meaningful action.

Engineering the Future, Digitally

National Foods accelerated its digital journey with impactful innovations across operations and infrastructure:

• Smart Operations: Introduced real-time shop floor visibility via the 5S App and streamlined workflows on Google Cloud, boosting efficiency and security.

• Employee Engagement: Redesigned the Pazeerai platform with SAP SuccessFactors integration to enable digital gifting and drive engagement.

• HR Transformation: Digitised the Career Framework, simplifying talent planning and development.

• Future-Ready Infrastructure: Upgraded to HP Aruba

  Driving a Culture of Safety & Wellbeing

  Through structured programs, leadership engagement, and site-wide initiatives, we continued to embed HSE excellence into National Foods' operational DNA. Rooted in the founders' philosophy and core values, our HSE strategy remained central to operations, strengthening risk controls, advancing sustainable initiatives, and fostering purpose-driven employee engagement.

  Health & Wellbeing of Employees

  
  
  

  At National Foods, employee health and well-being are central to our commitment to a safer, more supportive workplace. All manufacturing sites offer 24/7 medical support with qualified staff, free consultations, and essential medicines. Regular health awareness sessions further promote early action and long-term wellness.

  Protecting Our Environment

  Embedding Safety Through Prevention & Preparedness

  National Foods enhanced risk mitigation and operational safety through targeted interventions. High-risk equipment was secured with improved machine guarding, and thermal imaging technology enabled early detection of electrical issues. Company-wide defensive driving programs promoted safer commuting, while collaboration with Rescue 1122 boosted emergency preparedness. Leadership-led Gemba Walks increased frontline engagement, and comprehensive Business Continuity Plans for manufacturing sites aligned safety, environmental, and operational resilience under a unified framework.

  Ordering Portal

  National Foods' International Ordering Portal has been transformed into a tech-enabled, centralised platform replacing manual processes with intelligent workflows and real-time integration. Now live for National Foods DMCC distributors, it enhances order accuracy, sales planning, and service. Phase III will add real-time stock visibility, with NEI rollout and advanced analytics to follow.

  network for enhanced connectivity and collaboration.

• Cybersecurity Strengthened: Deployed advanced tools for real-time threat detection and faster response.

• Cloud -First Migration: Shifted to Sangfor Hyper -Converged Infrastructure, reducing costs and replacing legacy systems to ensure scalability and agility.

Environment lies at the heart of sustainable growth, and at National Foods, we continue to take meaningful steps to protect and enhance it. Over 6,000 plants were added at the Port Qasim facility, transforming it into a thriving green space. Gul Mohar trees were also shared with neighboring factories, fostering a culture of shared environmental responsibility. Tree plantation drives at National Foods' Faisalabad and Nooriabad sites further reinforced our commitment to a greener, more sustainable future.

The 21st Annual Environmental Excellence Award (AEEA) 2024 was presented by the National Forum for Environment & Health (NFEH) in recognition of outstanding commitment to environmental responsibility. The award reflects consistent efforts in implementing effective practices that reduce environmental impact and promote responsible operations.

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Our HSE Journey Towards Zero Harm

Employee engagement remained a significant pillar of our HSE strategy. HSE Week, launched on April 28th in alignment with the World Day for Safety and Health at Work, focused on key areas such as Hand Safety, Slips, Trips, & Falls, Ergonomics, and HSE Reporting. The week featured safety patrolling, hazard hunt competitions, focused awareness sessions, and a recognition program to celebrate employees' exemplary contributions to safety.

On June 5th, World Environment Day was celebrated through awareness sessions and competition that encouraged employees to demonstrate eco-friendly habits in their daily routines. These initiatives collectively reinforced a sense of ownership and commitment toward a safer, healthier, and more sustainable workplace.

FY25 was a milestone year for the International Division marked by record performance, disciplined execution, and continued progress on our transformation agenda. Amid external headwinds including economic volatility, geopolitical complexity, and global trade pressures, the Division delivered its highest topline in history, reflecting strength and the growing maturity of our international business model.

Expanding Global Reach

The year saw continued expansion across our footprint, with new market activations and distribution transitions in Europe, the Middle East, and APAC. These efforts enhanced in-market agility and strengthened our ability to serve evolving consumer needs across regions. We also made progress in building our mainstream retail presence, helping expand access to our portfolio and laying the groundwork for broader retail penetration.

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Simplifying to Scale

A major enabler of delivery in FY25 was our commitment to simplification aimed at improving agility, focus, and profitability. A comprehensive SKU rationalisation program was executed across markets to sharpen focus on core, high-performing products. This initiative helped reduce complexity, improve service agility, and enhance operational alignment across functions and geographies.

A key milestone was the launch of a centralised ordering portal, which simplified internal workflows and gave distributors a more efficient, transparent way to place and track orders, strengthening connectivity across the international supply chain.

We also enhanced fulfilment capabilities through our distribution hub and introduced packaging and supply chain standardisation measures to improve turnaround times. These were supported by cost transformation efforts aimed at improving profitability and building a more scalable operating model.

Together, these initiatives reflect our commitment to building a simpler, smarter international business that's better equipped to deliver across an expanding global footprint.

35 | About The Company

Evolving Portfolio with Purpose

FY25 marked meaningful progress in strengthening our international product portfolio through innovation, core renovation, and market-led execution. A key milestone during the year was the relaunch of our sauces range, featuring improved recipes and refreshed packaging. This was supported by a comprehensive commercial rollout that included visibility drives, in-store activation, and sampling at key events across multiple regions. The range was also recognised by the International Taste Institute in Brussels, with the entire portfolio receiving the Superior Taste Award in acknowledgment of its enhanced sensory profile and quality credentials.

In parallel, foundational upgrades were undertaken across our core portfolio to improve formulations and ensure consistency in quality across geographies. These efforts reflect our ongoing commitment to strengthening trusted categories while continuing to bring relevant innovation to international markets.

Elevating Brand Engagement

Brand presence was further elevated through participation in high-impact global forums such as Gulfood 2025 & key food exhibitions in the USA where the Division showcased its portfolio, reinforcing brand visibility and connecting with international buyers. Another key highlight of the year was also our involvement in the Pakistan Conference 2025 at Harvard University, where National Foods proudly represented to discuss Pakistan's economic trajectory, democratic reform, foreign policy, and climate resilience.

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