KARACHI:Â Rafhan Maize Products Company Limited (RMPL) reported a profit after tax of Rs. 5.09 billion for the quarter ended September 30, 2025, marking an 8.5% decline from the Rs. 5.57 billion earned in the same period last year. The contraction in profitability occurred despite robust top-line growth, underscoring significant margin pressures from elevated costs.
Earnings per share (EPS) for the quarter stood at Rs. 551.05, down from Rs. 602.51 in the prior year. The company’s revenue from operations demonstrated strong momentum, increasing by 10.2% to Rs. 55.44 billion, driven by higher sales volumes and strategic pricing. However, the cost of sales grew at a faster rate of 13.3%, leading to a slight 1.2% contraction in gross profit and a compression of the gross margin to 19.1% from 21.3%.
The bottom line was further pressured by a substantial 34.1% surge in distribution expenses and a 14.9% rise in finance costs, reflecting broader inflationary and high-interest rate environments. These factors contributed to a 4.2% decline in operating profit. A significant 92.8% reduction in final taxation provided some relief, but was insufficient to offset the overall cost escalation.
In a strong signal of financial health and commitment to its shareholders, the Board declared a substantial interim cash dividend of Rs. 130 per share (1,300%) for the quarter. This brings the total interim dividends for the current year to Rs. 330 per share. This move highlights the company’s robust cash generation capabilities and its strategy of returning value to shareholders even in a period of moderated profitability. The results depict a company navigating cost headwinds effectively while maintaining its focus on rewarding its investor base.
