Rafhan Maize Products : Transmission of Quarterly Report for the Period Ended March 31, 2023

Quarterly Report

Quarter Ended March 31, 2023

Company Information

Board of Directors
Chairman
Mr. Michael F. O'Riordan	Non-Executive
Chief Executive & Managing Director
Mr. Humair Ijaz Ahmed	Executive
Members:
Mr. James D. Gray	Non-Executive
Mr. Marcel Hergett	Non-Executive
Ms. Tanya Jaeger de Foras	Non-Executive
Mr. Zulfikar Mannoo	Non-Executive
Mian M. Adil Mannoo	Non-Executive
Mr. Wisal A. Mannoo	Non-Executive
Mr. Adil Saeed Khan	Executive
Mr. Waqar Ahmed Malik	Independent &
	Non-Executive
Mr. Tahir Jawaid	Independent &
	Non-Executive
Chief Financial Officer
Mr. Adil Saeed Khan
Company Secretary
Mr. Mustafa Kamal Zuberi
Audit Committee
Mr. Waqar Ahmed Malik	Chairman
Mr. James D. Gray	Member
Mr. Marcel Hergett	Member
Ms. Tanya Jaeger de Foras	Member
Mr. Zulfikar Mannoo	Member
Mr. Kamran Anjum	Secretary
Human Resource & Remuneration Committee
Mr. Tahir Jawaid	Chairman
Mr. Michael F. O'Riordan	Member
Ms. Tanya Jaeger de Foras	Member
Mr. Humair Ijaz Ahmed	Member
Mian M. Adil Mannoo	Member
Ms. Mehwish Iftikhar	Secretary
Operations Committee
Mr. Michael F. O'Riordan	Chairman
Ms. Tanya Jaeger de Foras	Member
Mr. Tahir Jawaid	Member
Mr. Humair Ijaz Ahmed	Member
Mr. Wisal A. Mannoo	Member
Mr. M. Saeed Akhter	Secretary
Shares Transfer Committee
Mr. Humair Ijaz Ahmed	Chairman
Mr. Adil Saeed Khan	Member
Mr. Mustafa Kamal Zuberi	Secretary

Bankers

Citibank, N.A.

Habib Bank Ltd.

Meezan Bank Ltd.

MCB Bank Ltd.

MCB Islamic Bank Ltd.

National Bank of Pakistan

Standard Chartered Bank (Pakistan) Ltd.

Auditors

KPMG Taseer Hadi & Co.

Chartered Accountants

Lahore - Karachi

Legal Advisor

M. Ali Seena

C/o Surridge & Beecheno,

Karachi-74000.

Shares Registrar

FAMCO Associates (Pvt.) Ltd.

8-F, Next to Hotel Faran, Nursery, Block-6, P.E.C.H.S., Shahrah-e-Faisal,Karachi-75400.

Tel:[phone]

Fax: [phone]

E-mail: [e-mail]

Registered Office & Shares Department

Rakh Canal East Road, Faisalabad.

Ph: (92-41)8540121-22-23

Fax: [phone]

Website: www.rafhanmaize.com

E-mail:[e-mail]

Plants:

Rakh Canal Plant:

Rakh Canal East Road,

Faisalabad-38860.

Ph: (92-41)8540121-22-23

Fax: [phone]

Cornwala Plant:

5-KMJaranwala-Khurrianwala Road, Jaranwala - 37250.

Ph: (92-41) 4710121 & 23-27

Mehran Plant:

K.B. Feeder Road, Kotri,

Jamshoro-76090.

Ph: (92-223) 870894 - 98

DIRECTORS' REVIEW

We are pleased to present un-audited financial results of the Company for first quarter ended March 31, 2023.

FINANCIAL RESULTS

		Quarter ended March 31
		2023	2022
Net Sales	(Rs Million)	17,608	12,481
Net Income after Tax	(Rs Million)	2,593	1,784
Earnings Per Share	(Rupees)	280.73	193.18

The Pakistani economy continues to reflect a broad-based slowdown due to a confluence of factors, such as political instability, dwindling foreign exchange reserves, a devaluation of the Pakistani rupee, and high energy and commodity prices. The situation has been further exacerbated by the delay in reaching an agreement with the International Monetary Fund (IMF) and the implementation of policy measures to fulfill the IMF's pre-conditions, which include tightening of monetary and fiscal policies and the removal of subsidies. These factors have resulted in a slowdown of economic growth, leading to a decrease in demand.

Despite these challenges, Rafhan has demonstrated remarkable resilience by achieving a 41% increase in net sales and a 45% growth in the bottom line in comparison to Q1 2022. The company's success attributed to improved operational efficiencies, cost-cutting measures, smart corn buying and rationalizing prices.

BUSINESS REVIEW

The performance of the industrial ingredient business showed a slight recovery. The textile industry, which is the largest consumer of industrial ingredients, remained sluggish due to a decline in export orders, high manufacturing costs, challenges in opening LC's to import critical raw materials, and an increase in energy and interest rates. These unfavorable factors resulted in a decrease in sales for the company's textile segment. Similarly, the paper and corrugation segments also experienced a decline in demand due to the adverse effects of the economy and an overall drop in demand from their respective industries.

The food ingredients business faced challenges due to the highest inflationary spikes in all food and related items, which impacted the demand patterns. Consequently, volumes remained lower, particularly in confectionery and bakery products.

The demand for animal nutrition ingredients remained steady, especially from the poultry and dairy/livestock industries, due to a shortage of other feed ingredients and the company's competitive pricing.

Outlook

The economic and business situation in the upcoming months remains uncertain and challenging for the country. The company will focus on increasing volumes, implementing strict cost controls, optimizing processes, rationalizing prices, and efficiently managing working capital. Despite the challenges, the company remains committed to achieving strategic expansion, improving shareholder value, and striving for excellence in all aspects.

May Allah give us the courage to face the challenges ahead. Ameen

On behalf of the Board

Adil Saeed Khan	Humair Ijaz
Chief Financial Officer	Chief Executive and
	Managing Director

April 28, 2023

IMPORTANT NOTES TO SHAREHOLDERS

Please go through the following notes. It will be appreciated if you please respond to your relevant portion at the earliest -

CNIC No.

Members are requested to submit a copy of their valid CNIC (only physical shareholders), if not already provided to the Shares Registrar of the Company. Corporate account holders should submit National Tax Number, if not yet submitted. In case of non-submission of CNIC/NTN Certificate (copy), all future dividend warrants will be withheld.

Dividend Mandate/E-Dividend

In accordance with the provisions of Section 242 of the Companies Act, 2017, a listed company, is required to pay cash dividend to the shareholders ONLY through electronic mode directly into the bank account designated by the entitled shareholders.

In order to receive dividends directly into their bank account, shareholders are requested to fill in Dividend Mandate Request Form available at Company's website www.rafhanmaize.comand send it duly signed along with copy of CNIC to the Shares Registrar of the Company, in case of physical shares. In case the shares are held in CDC, then the Form must be submitted directly to shareholder's broker/participant/CDC Account Services.

In case of non-receipt of the above information, the Company will be constrained to withhold payment of dividend to such shareholders.

Circulation of Annual Audited Financial Statements via CD/USB/DVD

Annual Financial Statements of the Company for the financial year ended December 31, 2022 have been placed on the Company's website www.rafhanmaize.com

Securities & Exchange Commission of Pakistan (SECP) vide its SRO No.470(1)/2016 dated May 31, 2016 has allowed companies to circulate the Annual Balance Sheet, Profit and Loss Account, Auditors' Report and Directors' Report etc. ("Annual Audited Financial Statements") along with notice of general meeting to its members through CD/DVD/USB at their registered addresses.

However, shareholders who wish to receive the hard copy of Annual Audited Financial Statements along with notice of general meeting shall have to fill the request form which is available at Company's website www.rafhanmaize.comand send it to our Shares Registrar or Company Secretary at their respective mailing addresses given at the end of these notes.

Unclaimed Shares/Unpaid Dividend

In compliance of Section 244 of the Companies Act 2017, a Final Notice was given by the Company on March 27, 2018 that the shares of Rafhan Maize Products Co. Ltd./dividend declared by the Company, details whereof are appearing on the Company's website www.rafhanmaize.comhave remained unclaimed or unpaid for a period of three years from the date these have become due and payable. In case of non-receipt of any claim is by the respective shareholders to above referred Final Notice, the company shall proceed to deposit the unclaimed/unpaid amount with the Federal Government pursuant to the provisions of sub-section 2 of section 244 of the Companies Act 2017.

Deduction of Income Tax from Dividend under Section 150

Pursuant to the provisions of the Finance Act, 2019, effective July 1, 2019, the rates of deduction of withholding tax from dividend payments under the Income Tax Ordinance have been revised as under:

For filers of income tax returns

For non-filers of income tax returns

15%

30%