Rafhan Maize Products Company Limited (PSX: RMPL) reported a resilient financial performance for the quarter ended March 31, 2026, posting a 4% year-on-year increase in net profit despite facing economic uncertainty, geopolitical tensions, and intense market competition.
According to the company’s latest quarterly report, net sales remained largely stable at Rs19.04 billion compared to Rs19.06 billion in the corresponding period last year. However, profit after tax rose to Rs2.03 billion from Rs1.96 billion, while earnings per share (EPS) improved to Rs220.09 from Rs211.67.
The company attributed its improved profitability to portfolio diversification, disciplined pricing strategies, operational efficiencies, and cost optimization measures. Management noted that the business environment remained challenging due to the closure of trade with Afghanistan, an influx of lower-priced imports, elevated input costs, subdued market demand, and geopolitical tensions involving the Middle East.
During the quarter, Rafhan Maize’s food ingredients segment delivered healthy growth, supported by steady demand for liquid glucose, dextrose, and food-grade starches. Demand from confectionery manufacturers strengthened, while sectors including ice cream, beverages, soups, pharmaceuticals, food processing, and baking maintained strong consumption during the Ramadan and Eid season.
The industrial business experienced mixed performance. Export-oriented textile manufacturers showed signs of recovery amid stronger international demand, while domestic-focused textile producers continued to face economic headwinds. Other industrial segments, including paper, corrugation, and various manufacturing applications, performed relatively better during the period.
Meanwhile, the animal nutrition ingredients business remained under pressure due to the availability of substitute products, although demand from the dairy sector provided some support to feed ingredient volumes. Exports also faced challenges because of the suspension of trade with Afghanistan and regional geopolitical instability, which affected broader Middle Eastern markets.
On the financial front, Rafhan Maize reported gross profit of Rs4.16 billion, up from Rs3.90 billion in the same quarter last year. Operating profit increased to Rs3.47 billion, while finance costs declined significantly to Rs148 million from Rs247 million, further supporting earnings growth.
Looking ahead, the company expects geopolitical tensions, commodity price volatility, and foreign exchange pressures to continue influencing business conditions. Despite these uncertainties, management remains optimistic about future growth, emphasizing market share expansion, prudent cost management, innovation, and operational resilience as key drivers of long-term performance.
The Board of Directors has also proposed a first interim cash dividend of Rs94 per share for the quarter ended March 31, 2026, amounting to approximately Rs868 million.
