Matco Foods Limited recorded consolidated earning per share of PKR 3.39 in FY25, as compared to loss per share of PKR 2.33 in FY24.
The company recorded net sales of PKR 26.7 Bn, down 4% from PKR 27.7 Bn in FY24. During FY25, the company’s gross margin rose from 11% in FY24 to 13%.
Along with this, it saw its gross profit increase from PKR 3.2 Bn in FY24 to PKR 3.4 Bn in FY25. MFL posted profit after tax of PKR 415 Mn in FY25, compared to loss after tax of PKR 285Mn in FY24.
The company has carved out its Falak Foods division into Falak Foods (Private) Limited in preparation for the IPO of this unit. Similarly, the company has also carved out its corn starch division as a 99.99% subsidiary through a scheme of arrangements and the new entity is Matco Corn Products (Private) Limited.
Regarding its core business of rice, the company apprised that exports of rice are expected to be lower this year with local demand making up for the same. The average selling price for white basmati rice in FY25 was USD 1,159 (FY24:1,280) and brown basmati rice is USD 949 (FY24: 1,375). The company aims to increase its exports of basmati rice moving forward.
Falak Foods saw a 48% growth in revenues in FY25, rising from PKR 365 Mn in FY24 to PKR 540 Mn. The company has been engaging in marketing and digital media activities to enhance the brand value of this division and increase market share in both local and export markets. Gross margins for this segment are between 35-40%.
The rice glucose division has seen growth in both local and export sales in FY25 as follows:
Export: PKR 1,430 Mn (FY24: 1,329 Mn)
Local: PKR 2,042 (FY24: 1,908 Mn)
This growth was on the back of recovery in demand in the local markets. The company is one of two players in Pakistan to locally produce dextrose monohydrate and with cheaper imports being dumped into the country it plans to file a case with the National Tariff Commission for the imposition of anti dumping duties.
With regards to its corn starch division, the management expressed hope for an improvement in margins as higher value products are introduced and gain traction such as pharma grade. It expects substantial improvement in this regard June 2026 onwards as these products sell for more than just plain vanilla starches.
With regards to purchase cost stability the management highlighted that it has rented silos in south Punjab for the storage of a larger inventory to stabilize costs for the corn starch division.
Moving forward, management was hopeful of the future with their new products to drive improvement in margins in the future. It was also highlighted that the management is planning to hold analyst briefing sessions more often, perhaps twice a year to maintain better clarity for investors.
Important Disclosures
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