Blue-Ex Limited (PSX: GEMBLUEX) was incorporated in Pakistan as a private limited company in 2005. The company is engaged in activities such as cargo forwarding, providing domestic and international courier services and allied services. Pattern of Shareholding As of June 30, 2025, GEMBLUEX has a total of 27.428 million shares outstanding which are held by 258 shareholders. Directors, CEO, their spouse and minor children have the majority stake of 65.15 percent in the company. The remaining shares are available as free float and are publicly traded on the Pakistan Stock Exchange. The main shareholders include local general public and Banks, DFIs and NBFIs. Historical Performance (2024-2025) GEMBLUEX’s topline has posted year-on-year decline in both the years. Conversely, its bottomline picked up. The company’s margins also followed an upward trajectory over the period. The detailed performance review of the period under consideration is given below. In 2024, GEMBLUEX’s topline slid by 13.84 percent to clock in at Rs.1166.029 million. Income from courier and allied services, which has the highest share in the overall sales mix of the company considerably declined during the year. Commission also took a deep dive during the year. On the contrary, international freight showed progress in 2024. Change of sales mix by increasing focus on international freight resulted in 5.90 percent rise in gross profit in 2024 with GP margin clocking in at 22.05 percent versus GP margin of 17.94 percent recorded in 2023. Administrative and marketing expenses dipped by 1.05 percent and 13.35 percent respectively during the year. This was due to lesser depreciation on right-of-use assets and no rent, rates and taxes paid during the year. The company also streamlined its marketing and sales promotion activities during the year. No other expense was incurred during the year as it comprised of loss incurred on the sale of fixed assets in 2023. Other income narrowed down by 20.37 percent in 2024 due to lesser gain on short-term investments. Operating profit improved by 13.97 percent in 2024 with OP margin clocking in at 9.79 percent versus OP margin of 7.40 percent recorded in the previous year. Finance cost surged by 145.50 percent in 2024 due to increased lease liabilities and higher discount rate. Net profit ticked up by 0.38 percent to clock in at Rs.75.74 million in 2024 with EPS of Rs.2.76 versus EPS of Rs.2.75 recorded in 2023. NP margin progressed from 5.58 percent in 2023 to 6.50 percent in 2024. In 2025, GEMBLUEX’s topline further deteriorated by 1.98 percent to clock in at Rs.1142.89 million. Income from courier and allied services further shrank during the year due to road closures and delays owing to floods and a spike in fuel cost. Disrupted transport routes further added to cost pressure.Conversely, international freight revenue and commission income expanded in 2025 to grab 42.48 percent of the company’s overall sales mix versus its share of 36.34 percent recorded in 2024. Despite contraction, income from courier and allied services continues to have a lion’s share in the company’s sales mix. Inclination towards high margin services resulted in 18.51 percent growth in the company’s gross profit in 2025 with GP margin attaining its optimum level of 26.67 percent. Administrative expense ticked up by 7.43 percent in 2025 due to increased depreciation and amortization expense, utility charges as well as repair & maintenance expense incurred during the year. Increase in sales promotion drives led to 34.35 percent higher marketing expense in 2025. Loss incurred on the sale of fixed assets culminated into other expense of Rs.0.964 million in 2025 versus no other expense registered in the previous year. Other income dwindled by 66.12 percent in 2025 due to lower gain on short-term investments and thinner unrealized gain on foreign currency deposits. GEMBLUEX was able to record 14.69 percent stronger operating profit in 2025 with OP margin clocking in at 11.46 percent. Finance cost ticked up by 3.41 percent in 2025 due to elevated lease liabilities. Net profit picked up by 18.68 percent to clock in at Rs.89.89 million in 2025 with EPS of Rs.3.28 and NP margin of 7.87 percent. Recent Performance (1QFY26) During the first quarter of the ongoing fiscal year, GEMBLUEX recorded 25.22 percent year-on-year growth in its topline which clocked in at Rs.291.749 million. Unlike the previous two years where international freight considerably progressed while revenue from courier & allied services shriveled, the latter proved to be the major growth driver in 1QFY26 while the former receded. Devastating floods not only created supply chain impediments for the company but also drove up the cost due to taking alternate and longer routes. This resulted in 28.59 percent spike in cost of sales in 1QFY26. Gross profit grew by 17.12 percent in 1QFY26; however, GP margin dipped to 27.47 percent from 29.37 percent in 1QFY25. Administrative expense ticked up by 12.24 percent in 1QFY26 seemingly due to higher depreciation, amortization and repair & maintenance charges. The company kept a check on its promotional activities which led to 1.33 percent thinner marketing expense in 1QFY26. Other income weakened by 58.18 percent in 1QFY26 due to lower profit on short-term investments and bank deposits. Operating profit grew by 8.37 percent in 1QFY26, however, OP margin clocked in at 7.13 percent versus OP margin of 8.24 percent recorded in 1QFY25. Despite monetary easing, finance cost continued to grow to the tune of 7 percent in 1QFY26 due to growing liabilities. Net profit clocked in at Rs.15.335 million in 1QFY26, up 30.53 percent year-on-year. This translated into EPS of Rs.0.56 in 1QFY26 versus EPS of Rs.0.43 in 1QFY25. NP margin also ticked up from 5.04 percent in 1QFY25 to 5.26 percent in 1QFY26. Future Outlook With all the necessary approvals received, the company is continuing its progress towards transferring from GEM board to the main board of the Pakistan Stock Exchange. This will mark a milestone in the history of the PSX. Therecently completed public issue of shares will further support the expansion of the company’s operations particularly in the domain of international freight. Europe, Far East and North America are the key growth regions identified by the company where it has already established key partnerships. GEMBLUEX’s strategic partnership with Aramex LLC, Dubai is providing immense support in international express delivery services and has opened up routes to diverse markets worldwide. Alliance with local partners such as Fly Jinnah will also continue to benefit the company by providing cost control and operational efficiency.