Rafhan Maize Products Company Limited has reported a solid financial performance for the six months ended June 30, 2026, with net profit rising 6.4% year-on-year despite a challenging business environment marked by inflation, higher energy costs and geopolitical uncertainty.
According to the company’s unaudited half-year results, Rafhan Maize recorded net sales of Rs38.19 billion during the first half of 2026, compared with Rs36.53 billion in the same period last year. Profit after tax increased to Rs4.11 billion from Rs3.87 billion, while earnings per share improved to Rs445.43 from Rs418.57.
The company said its performance remained resilient despite softer customer demand and pressure from rising costs. Greater customer engagement, volume growth and cost-optimization measures helped support profitability during the period.
Nishat Group becomes majority shareholder
One of the most significant developments during the period was the change in the company’s ownership structure. Effective June 30, 2026, Nishat Group acquired a 73.97% equity stake in Rafhan Maize from Ingredion Inc. and other minority shareholders.
As a result of the transaction, Nishat Group became the company’s majority shareholder, while Ingredion Inc.’s stake declined from 71.04% to 20%. The report also notes that D.G. Khan Cement Company Limited acquired a 31.07% shareholding as part of the transaction.
Food demand shows modest improvement
Rafhan Maize said demand from the food sector improved modestly across several important end-use markets, including confectionery, ketchup, custards, mayonnaise, bakery products and other processed-food applications.
However, higher food raw-material prices, energy costs and pressure on consumers’ disposable incomes continued to weigh on purchasing power. To respond, the company focused on its price-mix strategy, sales and distribution network, product innovation and operational efficiency.
Other parts of the business produced mixed results. The textile sector remained under pressure because of weak domestic and international demand, higher input costs, US tariff measures and stronger regional competition. Paper and corrugation markets also remained challenging.
At the same time, trade and personal-care segments remained robust, while the Animal Health business benefited from improved product mix, quality management, process improvements, disciplined pricing and partnerships with large dairy farms. Dairy and aquaculture activity also showed improvement.
Export environment remains difficult
Rafhan Maize said exports faced considerable challenges during the first half of 2026. The suspension of trade with Afghanistan and the broader impact of the US-Iran conflict on the Middle East constrained export activity.
The company is therefore looking toward alternative international markets to create new avenues for growth.
Cautious outlook for the second half
Looking ahead, management remains cautious about the economic environment. Geopolitical tensions, oil prices, shipping disruptions and currency pressures could continue to affect inflation, supply chains and raw-material costs.
Domestic demand is also expected to remain relatively subdued as consumers face spending constraints and industrial activity gradually recovers.
Despite these challenges, Rafhan Maize plans to strengthen local manufacturing, improve operational efficiency, expand and diversify its product portfolio and pursue opportunities in both existing and new markets.
The company said these priorities are intended to strengthen its competitive position and create a more resilient platform for sustainable long-term growth.
Bottom line
Rafhan Maize’s first-half results show that the company was able to protect profitability despite a difficult operating environment. With sales approaching Rs38.2 billion, profit after tax exceeding Rs4.1 billion and a major ownership transition bringing Nishat Group into control, the company enters the second half of 2026 with both challenges and new strategic opportunities.
