Rafhan Maize Products Company Limited recorded a solid improvement in profitability during the six months ended June 30, 2026, with profit after taxation rising to Rs4.11 billion, compared with Rs3.87 billion in the same period last year. The company’s latest interim financial statements show continued growth in revenue and operating profit, although cash flows remained under pressure.
According to the financial statements, the company’s revenue increased to Rs38.19 billion during the first half of 2026 from Rs36.53 billion a year earlier, representing growth of around 4.5%. Cost of sales also increased, reaching Rs30.29 billion compared with Rs28.87 billion in the corresponding period of 2025.
Despite higher costs, Rafhan Maize Products managed to improve its gross profit to Rs7.89 billion, up from Rs7.67 billion in the same period last year. Operating profit stood at Rs6.74 billion, compared with Rs6.69 billion previously.
The company reported profit before taxation of Rs6.47 billion, compared with Rs6.32 billion in the first half of 2025. After accounting for taxation of Rs2.36 billion, profit after tax reached Rs4.11 billion, compared with Rs3.87 billion a year earlier. This translates into an increase of approximately 6.4% in bottom-line earnings.
The improvement was also reflected in earnings per share. Basic and diluted earnings per share increased to Rs445.43, compared with Rs418.57 in the same period of 2025.
Stronger quarterly performance
Rafhan Maize Products also posted growth during the April-June quarter. Revenue rose to Rs19.14 billion, compared with Rs17.47 billion in the same quarter last year.
Quarterly gross profit increased to Rs3.73 billion, while operating profit reached Rs3.27 billion. Profit after taxation stood at Rs2.08 billion, compared with Rs1.91 billion in the corresponding quarter of 2025.
The company’s quarterly earnings per share also improved to Rs225.33, from Rs206.90 a year earlier.
Balance sheet expands
The company’s financial position also strengthened during the period. Total assets stood at approximately Rs64.30 billion at June 30, 2026, compared with around Rs59.17 billion at the end of December 2025.
Current assets increased to Rs51.92 billion, while property, plant and equipment rose to Rs12.34 billion from Rs11.58 billion at the end of 2025. The increase in fixed assets indicates continued investment in the company’s operating capacity.
Shareholders’ equity also increased, with total capital employed reaching approximately Rs31.04 billion at the end of June 2026, compared with Rs29.17 billion at December 31, 2025.
Cash flows remain a key area to watch
Despite the improvement in earnings, the company experienced significant cash outflows during the first half. Net cash used in operating activities amounted to Rs3.42 billion, compared with Rs1.10 billion used in the same period last year.
Investment activities consumed another Rs581.30 million, while financing activities resulted in a net cash outflow of approximately Rs1.19 billion. As a result, cash and cash equivalents declined by around Rs5.19 billion during the six-month period, leaving the company with approximately Rs2.23 billion at June 30, 2026.
Overall, Rafhan Maize Products delivered a positive earnings performance in the first half of 2026, supported by higher revenue, gross profit and operating earnings. However, the sharp decline in cash balances and negative operating cash flow will remain important areas for investors to monitor as the company moves into the second half of the year.
