Biafo Industries Limited reported a profit after tax of Rs388.94 million for the year ended June 30, 2026, broadly stable compared with Rs389.49 million recorded in the previous year, according to its financial statements.
The company’s revenue from contracts with customers increased to Rs3.19 billion during FY2026 from Rs2.90 billion a year earlier, representing growth of around 10%. However, higher costs and operating expenses limited the impact of the revenue increase on the bottom line.
Revenue and profitability
Biafo Industries posted gross profit of Rs1.16 billion, compared with Rs1.04 billion in FY2025. Operating profit stood at Rs679.22 million, down from approximately Rs719.97 million recorded in the previous year.
The financial statements show distribution expenses rising to Rs145.64 million, while administrative expenses increased to Rs276.09 million. The company also recorded a net impairment loss of Rs57.52 million on financial assets.
Finance costs increased to Rs53.76 million from Rs45.45 million, while finance income declined to Rs4.39 million from Rs7.87 million. After workers’ profit participation and welfare fund expenses, Biafo reported profit before income tax of Rs598.40 million, compared with Rs658.16 million in FY2025.
Income tax expense amounted to Rs209.46 million, resulting in profit for the year of Rs388.94 million. Basic and diluted earnings per share stood at Rs8.39, compared with Rs8.40 in the preceding year.
Assets and financial position
Biafo’s total assets reached approximately Rs3.34 billion at June 30, 2026, compared with Rs3.21 billion a year earlier. Non-current assets stood at around Rs2.27 billion, while current assets amounted to approximately Rs1.65 billion.
The company reported inventories of Rs595.07 million and trade debts of Rs476.53 million. Cash and bank balances increased to Rs126.68 million, compared with Rs81.07 million at June 30, 2025.
Current liabilities declined significantly to approximately Rs499.92 million from Rs1.10 billion in the previous year. As a result, net current assets increased to about Rs1.15 billion, compared with Rs1.05 billion previously.
Stronger operating cash generation
The cash-flow statement shows a notable improvement in operating cash generation. Biafo generated Rs735.55 million in net cash from operating activities during FY2026, compared with a net operating cash outflow of Rs30.62 million in FY2025.
The improvement was supported by changes in working capital, including a reduction in inventories and trade debts. Cash generated from operating activities before payments reached approximately Rs1.05 billion.
Investing activities generated net cash of Rs7.42 million, compared with a net outflow of Rs36.89 million in FY2025. The company spent approximately Rs44.40 million on property, plant and equipment during the year.
Dividend distribution
The statement of changes in equity shows that the company continued to distribute cash to shareholders. During FY2026, Biafo recorded a final cash dividend of Rs3.50 per share relating to 2025 and a first interim cash dividend of Rs2.50 per share for 2026. Total distributions shown for the year amounted to approximately Rs278.30 million.
At June 30, 2026, total equity stood at approximately Rs3.34 billion, compared with Rs3.21 billion at the end of the previous financial year.
Overall financial picture
Biafo Industries entered FY2026 with higher revenue and stronger operating cash flows, while its reported profit remained almost unchanged from the previous year. The financial statements also show lower current liabilities and an increase in net current assets.
The company’s total comprehensive income for FY2026 was Rs408.18 million, compared with Rs449.59 million in FY2025, mainly reflecting changes in the revaluation of property, plant and equipment and employee benefit measurements.
The FY2026 results therefore present a mixed financial picture: revenue and operating cash generation improved, while higher expenses, finance costs and impairment charges placed pressure on profitability.
