Rafhan Maize Q3 profit falls to Rs5bn, declares Rs130 dividend

October 30, 2025 (MLN): Rafhan Maize Products Company Limited (PSX: RMPL) reported a profit after tax of Rs5.09 billion for the quarter ended September 30, 2025, representing an 8.5% decline from Rs5.57 billion in the corresponding period last year.

Earnings per share stood at Rs551.05 compared to Rs602.51 in SPLY, reflecting the moderate contraction in profitability during the period.

Revenue from operations surged 10.2% year-on-year to Rs55.44bn from Rs50.32bn, demonstrating robust top-line growth driven by increased sales volumes and pricing adjustments. Cost of sales increased 13.3% to Rs44.84bn from Rs39.59bn.

Gross profit contracted marginally by 1.2% to Rs10.60bn against Rs10.72bn, with the gross margin declining to 19.1% from 21.3% in the prior year, indicating modest margin compression due to higher input costs that outpaced revenue growth.

Distribution expenses surged 34.1% to Rs846.16m from Rs630.93m, while administrative expenses increased 8.0% to Rs1.23bn from Rs1.14bn.

Other income rose 7.2% to Rs1.09bn from Rs1.02bn, and other expenses increased 5.8% to Rs666.76m from Rs629.99m last year.

Operating profit declined 4.2% to Rs8.95bn from Rs9.34bn in the previous year. Finance cost increased 14.9% to Rs619.27m from Rs539.17m in SPLY, showing higher borrowing costs amid elevated interest rates.

Profit before income tax declined 3.7% to Rs8.32bn from Rs8.63bn. The company benefited from a 92.8% reduction in final taxation to Rs12.38m from Rs172.32m, while regular taxation increased 5.2% to Rs3.23bn from Rs3.07bn.

The company concluded 3QCY25 with a profit for the period of Rs5.09bn, delivering a net profit margin of 9.2% compared to 11.1% in 3QCY24.

The profit decline was primarily driven by margin compression as cost of sales rose faster than revenue growth, coupled with a significant 34% surge in distribution expenses and higher finance costs, which more than offset the benefits from strong revenue expansion and reduced final taxation obligations.

Despite the modest profit decline, Rafhan Maize revealed an interim cash dividend of Rs130 per share (1,300%) for the quarter, bringing total interim dividends for CY25 to Rs330 per share including two previous dividends of Rs100 per share each, stressing the company's continued commitment to delivering strong shareholder returns backed by solid cash generation capabilities.

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