Rafhan Maize Products Co. Ltd. delivered a positive start to 2026, with its profit after taxation increasing by nearly 4% during the three months ended March 31, 2026, despite a slight decline in overall sales.
According to the company’s unaudited condensed interim financial statements, profit after taxation rose to Rs2.03 billion, compared with Rs1.96 billion in the same period last year. Earnings per share also improved to Rs220.09 from Rs211.67, reflecting the year-on-year improvement in profitability.
Sales remain broadly stable
Rafhan Maize Products reported net sales of approximately Rs19.04 billion during the January-March 2026 period, marginally lower than the Rs19.06 billion recorded in the corresponding period of 2025.
Despite the nearly unchanged revenue figure, the company managed to improve its gross profit. Gross profit increased to Rs4.16 billion from Rs3.90 billion, indicating an improvement in the company’s gross margin during the quarter.
The stronger gross profit helped offset pressure from operating expenses and supported the company’s overall earnings performance.
Profitability continues to improve
The company’s operating profit stood at Rs3.47 billion, compared with Rs3.44 billion a year earlier. Profit before income tax and final tax increased to Rs3.32 billion, from Rs3.19 billion in the first quarter of 2025.
After taxation, Rafhan Maize Products posted a profit of Rs2.03 billion, up from Rs1.96 billion a year earlier. The company’s comprehensive income for the period was also Rs2.03 billion, as no other comprehensive income was reported.
Balance sheet remains solid
The financial position of the company also strengthened during the quarter. Total capital employed increased to around Rs33.15 billion at March 31, 2026, compared with Rs31.09 billion at the end of December 2025.
Net capital employed stood at approximately Rs31.20 billion, while shareholders’ equity increased to the same level, supported by accumulated profits. The unappropriated profit reserve reached approximately Rs31.07 billion at the end of the quarter.
Cash position sees a major improvement
One of the notable developments in the quarter was the company’s cash position. Rafhan Maize Products generated Rs2.88 billion in net cash from operating activities, compared with a cash outflow of around Rs2.03 billion in the corresponding period of 2025.
After investing and financing activities, the company recorded a net increase of Rs2.19 billion in cash and cash equivalents during the quarter. Cash and cash equivalents at the end of March 2026 stood at approximately Rs9.61 billion, compared with a negative balance of around Rs19.35 million at the end of March 2025.
The improvement in operating cash generation provides an encouraging sign for the company’s liquidity and financial flexibility.
A positive opening quarter
Rafhan Maize Products’ first-quarter results show a business that maintained its revenue base while improving profitability and cash generation. The near-flat sales figure, combined with higher gross profit and stronger earnings, suggests that the company benefited from improved profitability during the period.
With profit after tax approaching Rs2.1 billion on an annualized quarterly run rate, investors will likely keep a close eye on whether the company can sustain the improved margins and cash flows through the remaining quarters of 2026.
Overall, Rafhan Maize Products has begun 2026 on a stronger financial footing, with higher profit, improved earnings per share and a significantly better cash position despite virtually unchanged sales.
