Global Rice News

Matco Foods Limited: A Leading Rice Exporter from Pakistan

Established in 1964, Matco Foods Limited (MFL) has emerged as one of the largest rice exporters in Pakistan. The company is dedicated to processing and exporting rice, rice protein, rice glucose, pink salt, condiments and spices, and dessert mixes. With its flagship brand “Falak,” MFL exports its products to over 65 countries worldwide.

Pattern of Shareholding

As of June 30, 2023, MFL has 122.4 million outstanding shares owned by 1768 shareholders. The majority stake of approximately 41.6% is held by Directors, their spouses, and minor children, followed by the local general public with a shareholding of 40.22%. Associated companies, undertakings, and related parties hold 15% of the shares, while the remaining shares are owned by other categories of shareholders.

Financial Performance (2019-2023)

MFL has shown a consistent growth in its topline since 2019, with the exception of a marginal dip in 2021. The company’s bottomline witnessed fluctuations, but overall performance has been positive since 2019. In 2019, MFL achieved a 17% year-on-year rise in its topline, driven by higher export sales and increased sales volume. Despite challenges like inflation and high energy prices, the company managed to improve its gross profit and net profit margins in 2019.

In 2020, MFL faced disruptions in export sales due to the COVID-19 pandemic. However, the company experienced growth in home-based consumption as the demand for food and grocery items increased. While the topline grew significantly, the cost of sales and distribution expenses impacted MFL’s gross profit margin. The company faced further challenges in 2021, resulting in a net loss. However, MFL made a remarkable recovery in 2022, with a substantial rise in its net sales and improved margins.

In 2023, MFL witnessed impressive financial performance, with a 61% year-on-year rise in net sales. Despite a decrease in export off-take, the depreciation of the Pakistani Rupee and increased export prices contributed to the company’s growth. The gross profit margin reached its highest value in five years, and MFL achieved a net profit growth of 25% in 2023.

Recent Performance (1QFY24)

In 1QFY24, MFL continued its growth momentum with a 128% year-on-year increase in net sales. The company benefited from higher export volume, improved export prices, inventory gains, and a stronger US dollar. However, the increase in cost of sales and operating expenses affected MFL’s gross profit and net profit margins during this period.

Future Outlook

MFL’s outlook remains promising as import bans on Pakistani rice have been lifted in key markets such as Russia and Mexico. Additionally, India’s introduction of a minimum floor price for Basmati rice exports creates further opportunities for Pakistani rice exporters. Despite challenges like higher costs and freight charges, MFL is well-positioned to maintain a strong topline in the future.

For more information, please visit the official website of Has Rice.

Source: BRecorder