Rafhan Maize earns Rs1.9bn in three months

August 23, 2024 (MLN): Rafhan Maize Products Limited (PSX: RMPL) earned a profit after tax of Rs1.9 billion [EPS: Rs205.95] in the second quarter of 2024 as it paid a significantly lower tax compared to a year ago

In the same period last year (SPLY), the company made a profit of Rs1.62bn [EPS: Rs175.74], translating to a rise of 17.2%.

Along with the results, the company announced an interim cash dividend of Rs100 per share i.e. 1,000% for the quarter ended June 30, 2024.

This is in addition to the Rs75 i.e. 750% interim cash dividend already paid.

Going by the results, the company's sales inched lower by 0.7% to Rs16.18bn as compared to Rs16.28bn in SPLY.

Moreover, the cost of sales rose 8.0%, worsening the gross profit by 24.2% to Rs3.33bn in Q2 2024.

The gross margins fell to 20.6% as compared to 27.0% in SPLY.

During the period under review, other income contracted by 15.1% to stand at Rs557.71m in Q2 2024 as compared to Rs656.83m in SPLY.

On the expense side, the company's administrative expenses rose 3.6% YoY to Rs350.75m, selling and distribution expenses rose 12.1% YoY to Rs224.68m, and other operating expenses fell 35.6% YoY to Rs209.89m.

The company’s finance cost expanded by 205.2% and stood at Rs160.48m as compared to Rs52.59m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a significantly lower tax worth Rs1.04bn against the Rs2.52bn paid in the corresponding period of last year, depicting a fall of 58.7%.

Amount in thousand except for EPS

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