Habib Rice Products Posts Improved Financial Performance in FY2026

Habib Rice Products Limited has announced its audited financial results for the year ended June 30, 2026, showing an improvement in revenue, gross profit and annual loss compared with the previous year. The company’s Board of Directors approved the financial statements at its meeting held on September 22, 2026.

According to the company’s statement of profit or loss, net sales increased to Rs2.288 billion in FY2026 from Rs2.136 billion in FY2025. This represents growth of approximately 7.1% year-on-year. Gross profit also rose to Rs200.69 million, compared with Rs169.99 million in the previous financial year.

Despite the improvement in sales and gross profit, the company remained in loss during the year. Habib Rice Products reported a net loss of Rs87.58 million, compared with a net loss of Rs155.71 million in FY2025. The loss per share also improved, declining to Rs2.19 from Rs3.89 a year earlier.

The financial statements show that distribution costs declined to Rs99.07 million from Rs159.98 million, while administrative expenses stood at Rs143.14 million compared with Rs141.13 million in FY2025. Finance costs increased to Rs16.63 million from Rs7.56 million.

Assets and Financial Position

Habib Rice Products’ total assets increased to approximately Rs1.509 billion as of June 30, 2026, compared with Rs1.384 billion at the end of FY2025. Property, plant and equipment stood at Rs635.69 million, while stock in trade increased to Rs532.39 million from Rs456.95 million.

The company’s issued, subscribed and paid-up share capital remained unchanged at Rs200 million, while reserves stood at approximately Rs506.13 million at June 30, 2026. Total equity was reported at Rs706.13 million.

Total liabilities increased to approximately Rs684.17 million, compared with Rs546.63 million in the previous year. Long-term financing rose to Rs113.8 million from Rs38 million, while short-term secured borrowing stood at Rs171.52 million.

Cash Flow Remains a Key Area

The company’s cash flow statement indicates that operations used Rs129.88 million in cash during FY2026, compared with Rs13.48 million used in FY2025. Capital expenditure amounted to Rs101.64 million, resulting in net cash used in investing activities of Rs101.27 million.

Financing activities generated approximately Rs159.45 million, supported by Rs100 million in short-term borrowing and Rs75.8 million in long-term financing. After operating, investing and financing movements, cash and cash equivalents declined to negative Rs60.56 million at the end of FY2026 from Rs11.14 million at the end of FY2025.

Annual General Meeting Scheduled for October 28

The company has scheduled its 46th Annual General Meeting for October 28, 2026, at 11:30 a.m. at the Federation House of the Federation of Pakistan Chambers of Commerce & Industry in Karachi. The share transfer books will remain closed from October 21 through October 28, 2026.

Overall, Habib Rice Products entered FY2026 with higher sales and gross profit and significantly reduced its annual loss compared with FY2025. At the same time, the financial statements show continued pressure from operating costs, financing requirements and cash flows, which remain important factors in the company’s financial position.