Rafhan Maize Products Company Limited has reported an encouraging improvement in profitability for the nine months ended September 30, 2026, with its after-tax profit increasing by 11.2% compared to the corresponding period last year. The company’s latest financial results reflect stronger earnings despite challenging economic conditions, higher input costs, and relatively subdued demand in several industrial sectors.
According to the company’s unaudited financial statements, net sales increased to Rs56.70 billion during the nine-month period, compared to Rs55.44 billion in the same period of 2025, representing growth of approximately 2.3%.
The company’s net profit after taxation rose to Rs5.66 billion, against Rs5.09 billion recorded in the corresponding period last year. Earnings per share (EPS) also improved to Rs612.94 from Rs551.05, highlighting the company’s improved profitability.
Strong Performance During the Third Quarter
Rafhan Maize Products also delivered a notable improvement in profitability during the third quarter ended September 30, 2026. Net sales stood at Rs18.52 billion, compared to Rs18.91 billion in the corresponding quarter last year.
Despite the slight decline in quarterly sales, profit after taxation increased to Rs1.55 billion from Rs1.22 billion, reflecting growth of approximately 26.4%. Quarterly earnings per share improved to Rs167.51 against Rs132.48 in the same period last year.
The improvement in earnings indicates the company’s ability to manage costs, improve operational efficiency, and maintain profitability despite pressure on sales.
Business Operations Face Mixed Market Conditions
The company’s food segment experienced modest improvement in demand across key customer categories. However, persistent inflation and pressure on household purchasing power continued to affect consumer demand.
Rafhan maintained its competitive position through consistent product quality, reliable supply, technical support, shorter delivery times, and its established nationwide distribution network.
Meanwhile, the industrial business faced a mixed operating environment. The textile sector remained under pressure because of subdued domestic and international demand, higher production costs, and increasing competition from regional manufacturing economies.
The paper and corrugation industry also experienced challenging market conditions. Nevertheless, the company’s commercial and operational strategies helped support business performance.
Its Animal Health segment delivered improved results, supported by a favorable product mix, stronger quality management, process improvements, disciplined pricing, and strategic partnerships with large dairy farms.
Export operations remained under pressure due to the suspension of trade with Afghanistan and geopolitical tensions in the Middle East. The company is continuing its efforts to explore alternative international markets.
Nishat Group Acquires Majority Shareholding
An important development during the reporting period was the change in the company’s ownership structure. Effective June 30, 2026, Nishat Group acquired a 73.97% shareholding in Rafhan Maize Products Company Limited.
Following this acquisition, Ingredion Inc.’s shareholding declined from 71.04% to 20%.
The change in ownership marks a significant development for the company as it moves forward under its new majority shareholder.
Investment and Financial Position
The company continued investing in its manufacturing infrastructure and operational capabilities. Its property, plant and equipment increased to Rs12.66 billion as of September 30, 2026, compared to Rs11.58 billion at the end of December 2025.
Capital work-in-progress reached Rs3.45 billion, reflecting ongoing investment in development and expansion activities.
However, the company’s cash flow position requires attention. Net cash used in operating activities increased to Rs9.35 billion during the nine-month period, compared to Rs4.55 billion in the corresponding period last year. Higher inventory levels, increased trade receivables, and changes in working capital contributed to the cash outflow.
Short-term secured financing also increased to Rs14.27 billion from Rs8.32 billion at December 31, 2025.
These developments highlight the importance of effective working capital management and cash flow discipline as the company continues its operations and investment plans.
Outlook Remains Focused on Sustainable Growth
Looking ahead, Rafhan Maize Products expects economic activity to receive support from improvements in agriculture, manufacturing, and private-sector financing. However, inflation, energy prices, global oil market movements, and geopolitical uncertainties are expected to remain important challenges.
The company plans to strengthen local manufacturing capabilities, improve operational efficiency, diversify its product portfolio, and expand its presence in existing and new markets.
Its focus on customer relationships, product quality, cost optimization, and export market development is expected to remain central to its business strategy.
Conclusion
Rafhan Maize Products’ nine-month financial results demonstrate improved profitability despite a challenging operating environment. While revenue growth remained moderate, the 11.2% increase in after-tax profit and stronger third-quarter earnings reflect encouraging business performance.
Going forward, the company’s ability to manage working capital, control operating costs, improve cash flows, and capitalize on growth opportunities under its new ownership structure will be important factors in sustaining financial performance.
