Rafhan Maize Product Company Limited (RMPL) reported earnings per share of PKR 707.51 for CY25, compared to earnings per share of PKR 809.31 in FY24. Furthermore, in 1QCY26, the company reported earnings per share of PKR 220.09, compared to earnings per share of PKR 211.67 in the same period last year (SPLY). Gross margins stood at 19%, slightly below the company’s historical target range of 20–21%.
Management attributed the pressure primarily to a prior period RLNG related government charge; excluding this one off impact, gross margins would have been approximately 120bps higher. The industrial business segment faced pressure from rising energy costs and increased competition; however, the company managed to maintain its market position through cost optimization initiatives and product diversification. Within the food segment, the confectionery business remained impacted by elevated sugar and energy prices, although demand for processed food products improved, supported by innovative product solutions.
Exports contribute approximately 20% of total sales, with key markets spanning the Middle East, Africa, Europe, and North America. However, export volumes softened during the final quarter due to the suspension of trade with Afghanistan. The company is currently undertaking a 200 ton per day grind expansion along with an additional 100 ton per day capacity expansion, both expected to be completed by 4QCY26.
Management clarified that the transaction represents an equity dilution rather than a complete divestment, with Ingredion Incorporated expected to remain a strategic partner, continuing to provide international technical and operational expertise. Pakistan has two corn crop seasons namely Spring and Autumn, with the Spring crop representing the larger season. RMPL aims to procure approximately 80–85% of its annual corn requirements during the Spring season, beginning in early June, as prices are typically lower during this period.
Management highlighted that the primary challenge remains within the Dextrose segment, where Chinese producers have been aggressively dumping material at lower prices over the past 2–3 years. RMPL currently produces approximately 20k tons of Dextrose annually and has jointly filed an anti dumping application with the NTC, with a decision expected by end June 2026.
Management expects a bumper corn crop this year and emphasized that the company’s business model allows raw material cost increases to be passed on to consumers, limiting the potential impact of corn price volatility on margins. Regarding local refined corn products and export pricing, management noted that pricing remains customer and region specific. While international markets are highly competitive, certain specialty products generate materially higher margins in export markets compared to the domestic market.
Important Disclosures
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