Rangpur Dairy & Food Products financial analysis: finance cost 5.8% of sales, EPS BDT 0.54, qualified audit (Oct 2026)

Investment considerations: revenue BDT 1244m, finance cost 5.8% of sales, FY2026 EPS BDT 0.54

Rangpur Dairy & Food Products Limited makes UHT, pasteurised and flavoured milk, ghee, butter, candy and other milk products at a factory in Salaipur, Baldipukur, Rangpur, and sells them in Bangladesh [1 p.54]. It was incorporated in March 2004, started commercial production on 14-Apr-2007 and sold shares to the public through an IPO in 2011 [1 p.54]. It has 75,973,956 shares [1 p.63] and a fiscal year that ends on 30 June [1 p.51]. The board recommended a change of name to 'Rangpur Dairy & Food Products PLC' for an EGM on 22-Dec-2025 [6].

The filings show five years of higher sales and a larger balance sheet, with profit below its FY2023 peak in each later year. Revenue was BDT 1244m in FY2025 against BDT 611m in FY2020; net profit after tax was BDT 46.1m against a peak of BDT 105.1m in FY2023 [5 p.42] [3 p.54] [1 p.51]. FY2026 EPS, announced on DSE on 29-Oct-2026, was BDT 0.54, which is about BDT 41m of profit on the current share count [6] [13]. The FY2026 annual report is not in the corpus at 1-Nov-2026; this note uses the nine-month accounts to 31-Mar-2026 for the line items and the DSE announcement for the full-year totals.

Business: one Rangpur dairy plant running at 57% of printed capacity

The company buys raw milk and other materials, processes them at Rangpur and sells packaged dairy products. Its stated nature of business is 'To produce or manufacture Ultra High Temperature (UHT), pasteurized and flavored milk, ghee, butter, different type of candy and milk products and marketing the same in the domestic market' [1 p.54]. The head office is in Mohammadpur, Dhaka [1 p.4]. The financial statements report one business; the notes do not split revenue by product or by channel [1 p.67].

Raw materials are the main cost. Raw materials consumed were BDT 828.7m in FY2025, 66.6% of revenue, against BDT 788.3m (63.8%) in FY2024 [1 p.67] [13]. The Schedule XI disclosure prints raw-material purchases of 13,924 tons and consumption of 14,435 tons for FY2025 [1 p.72]. The auditor drew attention to 'certain milk purchases from marginal level of farmers' made in cash, 'which the management considers necessary due to the nature of its business operations' [1 p.43]. The company's mission statement refers to 'our unique “Relationship Farming” Model' [1 p.4].

Production in FY2025 was 14,152 tons of fresh and flavoured milk; the annual attainable capacity was of 25,000 tons, 57% [1 p.71]. In FY2025 the company employed 340 factory staff and 640 head-office, marketing and distribution staff, as printed in note 35 [1 p.71]. Exports of BDT 71,234,695 were included in FY2025 revenue [1 p.67]; the chairman's message says 'we expanded both our domestic and international markets by improving product quality and strengthening our distribution network' [1 p.7].

Line items: gross margin from 23.7% (FY2022) to 19.4% (FY2025) and 21.3% (9M FY2026)

Sales rose 15.9% in FY2021, 27.3% in FY2022 and 34.4% in FY2023, then 1.9% in FY2024 and 0.7% in FY2025 [13]. Nine-month revenue to March 2026 was BDT 921.7m, up 0.5% on the same period a year earlier; January-March 2026 revenue was BDT 303.2m against BDT 323.3m [2 p.3]. The filings give no volume or price series; the split of growth between tons sold and price per ton cannot be calculated from them.

Gross margin rose from 18.6% in FY2020 to 23.7% in FY2022 and has fallen each year since, to 19.4% in FY2025 and 21.3% in 9M FY2026 [13]. The managing director's message names 'Rising prices of raw materials, higher production costs, increasing electricity and fuel expenses, and sustained inflationary pressures' and says 'intensified market competition and rising utility expenses affected the Company’s gross margin' [1 p.8]. In the FY2025 cost note, raw materials consumed rose 5.1% and power cost fell 16.5%, with fuel and diesel down from BDT 54.9m to BDT 42.8m [1 p.67] [13].

Operating expenses fell in FY2025. Office and administrative expenses were BDT 50.2m (4.0% of revenue) and marketing and distribution BDT 58.6m (4.7%), against 4.3% and 5.9% in FY2024 [1 p.51] [13]. In the marketing note, salary and allowances fell from BDT 47.2m to BDT 40.8m, TA/DA from BDT 11.3m to BDT 8.0m and carrying charges from BDT 8.3m to BDT 5.4m [1 p.68]. The same salary figures, BDT 40,802,218 for FY2025 and BDT 47,202,708 for FY2024, are also printed in the manufacturing-overhead note [1 p.67] [1 p.68]; the filing does not explain the identical amounts.

VAT and supplementary duty deducted from gross sales rose from BDT 13.1m in FY2024 to BDT 21.2m in FY2025, 1.7% of gross sales (FY2024: 1.0%) [1 p.67] [13]. Non-operating income was BDT 0.8m in FY2025, including fish sales of BDT 0.9m and a loss of BDT 0.2m on shares [1 p.68].

Finance cost and tax: interest 15.1% of average borrowings in FY2025 (derived), minimum tax 1% of receipts

Financial expenses were BDT 14.6m in FY2020, BDT 28.2m in FY2023, BDT 44.2m in FY2024 and BDT 71.9m in FY2025, and BDT 63.7m in the nine months to March 2026 against BDT 47.1m a year earlier [5 p.42] [3 p.54] [1 p.51] [2 p.3]. Interest on loans was BDT 71.6m of the FY2025 total [1 p.68]. Bank borrowings at the year end went from BDT 341.0m (June 2023) to BDT 390.7m (June 2024) and BDT 559.4m (June 2025) [3 p.53] [1 p.50]. Interest divided by average borrowings was 12.0% in FY2024 and 15.1% in FY2025 (derived) [13]; the cash credit, time loan and LTR facilities at Meghna Bank PLC carry 'Interest Rate: 14.50 % P.a. subject to revision from time to time' [1 p.65]. The auditor's key audit matter on finance cost describes the increase as 'driven by higher borrowing and financing costs' [1 p.45].

In the nine months to March 2026 long-term loans (non-current) rose from BDT 79.6m to BDT 212.1m and short-term bank loans fell from BDT 419.9m to BDT 286.0m [2 p.2]; the cash flow statement shows BDT 129.3m of long-term loan proceeds and BDT 133.9m of net short-term repayments [2 p.5]. Note 16 prints for Meghna Bank PLC: 'Nature: Term Loan', 'Sanction Limit: Tk. 206,200,000' and 'Expiry Date: 08.06.2025,11.10.2026, 29.08.2026, 29.08.2028, 03.07.2029, 30.06.2030.', secured by a registered mortgage of 257 decimal of project land with the factory building [1 p.65].

The FY2025 provision was the minimum tax of 1.00% of total receipts, BDT 12.6m, against a 0.60% rate in FY2024; the note says 'Previous year was rat progressive @ 15.00% but this year standard 22.50%' [1 p.69]. The managing director lists the 'corporate tax rate from 15% to 22.5%' among the reasons profit fell [1 p.8]. Tax was 21.1% of FY2025 profit before tax and 31.9% in 9M FY2026 [13].

FY2026: nine-month profit down 54%, full-year EPS BDT 0.54 (DSE-announced)

In the nine months to 31-Mar-2026 revenue rose 0.5%, cost of goods sold rose 5.6%, gross profit fell from BDT 231.1m to BDT 196.7m, financial expenses rose from BDT 47.1m to BDT 63.7m and net profit fell from BDT 85.6m to BDT 39.2m [2 p.3]. Marketing and distribution expenses fell from BDT 51.0m to BDT 43.7m [2 p.3]. Income tax was BDT 18.3m on profit before tax of BDT 57.5m [2 p.3].

DSE announced the audited FY2026 results on 29-Oct-2026: EPS BDT 0.54, NAV per share BDT 17.34 and NOCFPS BDT 0.22, against BDT 0.61, BDT 16.92 and BDT 0.16 for FY2025 [6]. Full-year EPS of BDT 0.54 less nine-month EPS of BDT 0.52 leaves BDT 0.02 for April-June 2026 (derived) [13]. The same arithmetic for FY2025, BDT 0.61 less BDT 1.13, gives a loss of BDT 0.52 a share for April-June 2025 (derived from the audited annual and the nine-month accounts; DSE does not publish a fourth-quarter figure) [1 p.51] [6] [13].

Balance sheet: receivables and inventory at 169 days net of payables; advances BDT 327m

Total assets grew from BDT 1,294.1m (June 2020) to BDT 1,973.7m (June 2025) and BDT 2,033.5m (March 2026) [5 p.41] [1 p.50] [2 p.2]. Property, plant and equipment is the largest asset, BDT 1,117.0m at June 2025; the auditor puts it at 'approximately 56.82% of the total assets' [1 p.44]. Equity rose from BDT 1,048.3m to BDT 1,285.6m over the five years and the equity-to-assets ratio fell from 81.0% to 65.1% [13].

NAV per share at 30-Jun-2025 is printed three ways in the FY2025 annual report: BDT 16.92 on the balance sheet [1 p.50], BDT 16.52 in the directors' report text and BDT 19.62 in the directors' report chart [1 p.12]. Equity of BDT 1,285.6m on 75.97m shares gives BDT 16.92 [13].

At June 2025 receivables were 64 days of revenue and inventory 108 days of cost of goods sold; accounts payable were 3 days [13]. Accounts payable fell from BDT 29.8m to BDT 7.2m in FY2025 [1 p.50]. The receivables ageing shows BDT 106.4m at 1-3 months, BDT 84.5m at 4-6 months, BDT 13.1m at 7-12 months and BDT 12.7m at one year and above; the expected credit loss provision is BDT 216,770 [1 p.62]. The auditor's emphasis of matter says the ECL provision 'was only 0.10% of total receivables during the year. Hence, the provision might be understated, leading to an overstatement of net receivable and profit' [1 p.43].

Advances, deposits and pre-payments were BDT 327.4m at June 2025 [1 p.50]. They include advances to parties of BDT 145.8m, advances to factory/chilling of BDT 67.7m and advances for machinery of BDT 91.3m [1 p.62]. The advance for machinery is printed by supplier: Basic Engineering BDT 31.0m, Shaheen Enterprise BDT 26.2m, Apon Engineering Workshop BDT 16.8m, ESS BDT 12.0m and United Engineering BDT 5.4m [1 p.63]. The ageing table under the same note adds to BDT 178,323,711, with BDT 91,323,711 'Above 1 year'; the note total is of BDT 91,323,711 [1 p.63]; the two printings are not reconciled in the filing.

Cash flow: BDT 416m of operating cash and BDT 750m of plant spending in six years

Over FY2020-FY2025 operating cash flow added up to BDT 416m, plant purchases to BDT 750m and dividends paid to BDT 125m [13]. Operating cash flow less plant purchases was positive in FY2021 and negative in the other five years [13]. The cumulative operating cash flow uses the FY2024 figure printed on the face of the cash flow statement, BDT 111.6m; note 34 of the same report prints BDT 71.6m, which would make the total BDT 376m [1 p.53] [1 p.71]. Over the same period bank borrowings rose by BDT 406m between June 2020 and June 2025 [13].

FY2025 operating cash flow was BDT 12.5m against BDT 111.6m in FY2024 [1 p.53]. Receipts from customers were BDT 1,208.7m and revenue BDT 1,244.0m; payments to suppliers, employees and others rose to BDT 1,192.2m from BDT 1,099.5m [1 p.53]. The auditor's emphasis of matter says NOCFPS 'decreased from Tk. 1.47 to Tk. 0.16, mainly due to changes in collection and payment timing. As a result, the company is facing liquidity constraints reflected through delayed payments of bank and other liabilities' [1 p.43]. In the nine months to March 2026 operating cash flow was BDT 112.1m [2 p.5]; the full-year FY2026 NOCFPS of BDT 0.22 announced on DSE equals about BDT 16.7m [6] [13].

Plant spending in FY2025 was BDT 174.5m, the largest of the six years [1 p.53] [13]; property, plant and equipment at cost rose from BDT 1,757.0m to BDT 1,931.5m and depreciation charged was BDT 79.6m [1 p.62]. The chairman writes that the company 'enhanced our manufacturing capacity through various technical and operational improvements' [1 p.7]. The 24-month DSE news archive (31-Oct-2024 to 1-Nov-2026) contains no board decision on a new plant, expansion budget or product line [6], and the FY2025 annual report gives no capital budget or completion date [1 p.7] [1 p.8].

Cash dividends paid were BDT 12.1m in FY2021, BDT 22.1m in FY2022, BDT 38.0m in FY2023 and FY2024, BDT 15.2m in FY2025 and BDT 7.5m in 9M FY2026 [5 p.44] [4 p.47] [1 p.53] [2 p.5]. The board recommended 1% cash for FY2025 and 1% cash for FY2026 [6]. Unclaimed dividend was BDT 1,889,155 at 30-Jun-2025 [1 p.17]; the auditor's emphasis of matter 5 reads: 'Unclaimed dividend Tk. 1,889,155, only where Tk. 194,383 is available in the bank and Tk. 404,694 deposited into the Capital Market Stabilization Fund; the remaining Tk. 1,290,078 has not been made available to the bank after depositing, rather used in the operational activities.' [1 p.43].

Returns: ROE 8.9% in FY2023, 3.6% in FY2025

Return on average equity was 4.4% in FY2021, 8.9% in FY2023, 6.2% in FY2024 and 3.6% in FY2025 [13]. Asset turn (revenue over closing total assets) rose from 0.47x in FY2020 to 0.71x in FY2023 and was 0.63x in FY2025 [13]. EPS on the current share count was BDT 0.29 in FY2020 and BDT 0.61 in FY2025 [13].

The components of return, year by year: Net margin was 8.7% in FY2023 and 3.7% in FY2025, asset turn 0.71x and 0.63x, and equity was 70.9% and 65.1% of total assets [13]. Borrowings rose from 0.28x to 0.44x equity over the same two years [13]. Cash dividends paid divided by the same year's net profit ranged from 24.7% to 49.4% in FY2021-FY2025 [13].

Audit: FY2025 qualified on deferred tax (Tk. 26.3m) and WPPF, with six emphasis paragraphs

Khan Wahab Shafique Rahman & Co. audited FY2024 and FY2025 [3 p.53] [1 p.50]; Shafiq Basak & Co. signed FY2023 and FY2021 [4 p.44] [5 p.41]. For FY2024 DSE reported 'Emphasis of Matters' paragraphs (post 17-Nov-2024) and for FY2025 a 'Qualified Opinion and Emphasis of Matters' (post 21-Dec-2025) [6]. The FY2026 auditor's report is not in the corpus at 1-Nov-2026.

The FY2025 basis for qualified opinion reads, in full: '1. The Company calculated deferred tax using the prior SRO rate of 15% instead of the current year applicable 22.5%. This resulted in an under-provision of approximately Tk. 26,316,016 with corresponding effect on EPS. 2. The Company has used WPPF balances as internal financing without paying interest, violating Sections 240(3) and 242(1) of the Bangladesh Labor Act 2006 (amended 2013). The balance was Tk. 22,997,297, of which only Tk. 2,811,600 was disbursed during the year.' [1 p.42]. The deferred tax note computes the liability 'Deferred Tax Liability @ 15% on Temporary Taxable Difference' [1 p.69]. The qualified amount of Tk. 26,316,016 is 2.0% of June 2025 equity (derived) [13].

The opinion paragraph under the heading 'Qualified Opinion' reads, in full: 'In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Rangpur Dairy & Food Products Limited as at 30 June 2025, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the Companies Act 1994 and other applicable laws and regulations.' [1 p.42]. The paragraph as printed contains no 'except for' wording [1 p.42].

Emphasis of matter 2: 'Expected Credit Loss (ECL) provision was only 0.10% of total receivables during the year. Hence, the provision might be understated, leading to an overstatement of net receivable and profit.' Emphasis of matter 3: 'We draw attention to Note 31.00, which explains the decline in EPS from Tk. 1.01 to Tk. 0.61 due to higher import costs inflation, and include bank interest rate. NOCFPS also decreased from Tk. 1.47 to Tk. 0.16, mainly due to changes in collection and payment timing. As a result, the company is facing liquidity constraints reflected through delayed payments of bank and other liabilities.' Emphasis of matter 5: 'Unclaimed dividend Tk. 1,889,155, only where Tk. 194,383 is available in the bank and Tk. 404,694 deposited into the Capital Market Stabilization Fund; the remaining Tk. 1,290,078 has not been made available to the bank after depositing, rather used in the operational activities. The Company calculated deferred tax using the prior SRO rate of 15% instead of the applicable 22.5%, Therefore Tk. 1,909,811 has been understated to others comprehensive income relating to revaluation reserve.' Emphasis of matter 6: 'We draw attention to certain milk purchases from marginal level of farmers were made in cash, which the management considers necessary due to the nature of its business operations.' The auditor adds: 'Our opinion is not modified in respect of these above matters.' [1 p.43].

Key audit matter, Revenue: 'The Company reported net revenue of Tk. 1,243,978,718 for the year ended 30 June 2025, including export sales of Tk. 71,234,695. Revenue recognition involves judgments in determining the timing and completeness of revenue recorded, especially for domestic and export sales contracts. There is also a risk of overstatement of revenue due to possible management bias or fraud risk pressure to achieve performance targets. Therefore, revenue recognition has been considered a key audit matter.' [1 p.44].

Key audit matter, Property, Plant & Equipment: 'The written down value of Property, Plant & Equipment (PPE) stands at Tk. 1,116,976,663 as at June 30, 2025 (June 30, 2024: Tk. 1,022,066,533) representing approximately 56.82% of the total assets of the Company. PPE primarily consists of production machinery, buildings and other operational assets used in dairy production and processing, which are critical to the Company's operations and long-term profitability. On local procurement, the company has not deducted applicable VAT and TDS. Due to the materiality of PPE to the financial statements and the judgment involved in determining useful lives, residual values, impairment, and capitalization of expenditures, there is a risk whether PPE has been appropriately recognized, depreciated, and disclosed in accordance with applicable accounting standards.' [1 p.44] 'Furthermore, management’s assessment of impairment involves forecasts of future cash flows and estimation of recoverable amounts, which are inherently judgmental and subject to uncertainty. Changes in the business environment, technological developments, and utilization levels may also affect the recoverable value of assets.' [1 p.45].

Key audit matter, Finance Cost & Liquidity Assessment: 'The Company incurred financial expenses of Tk. 71,851,226 during the year (preceding year: Tk. 44,198,800), reflecting a significant increase driven by higher borrowing and financing costs. High leverage and financing costs may impact liquidity and the ability to meet short-term obligations. There are management judgments involved in classification of borrowings, accrual of interest, and assessment of future cash flows. Considering the size of finance cost and its potential impact on profitability and liquidity, this has been determined as a key audit matter.' [1 p.45].

Key audit matter, Inventory Valuation and Existence: 'The Company held inventory of Tk. 296,591,121 as of 30 June 2025. Inventories are a significant balance for a dairy-based manufacturing company and require judgment in valuation—especially for raw milk, packaging materials, and finished goods—and involve potential risk of obsolescence or misstatement of production cost. The process of physical counts and valuation under IAS 2 involves significant estimation risk, therefore this area is considered a key audit matter.' Key audit matter, Accounts Receivable: 'Accounts receivable of Tk. 216,553,418 represent approximately 11.0% of the total assets of the Company and are a material item to the financial statements. There is a significant risk regarding the recoverability of these amounts and potential misstatement. As such, management is required to make judgments in determining whether accounts receivable are appropriately valued and to make sufficient provision for aged accounts receivable, if required. Please refer to Note 9 “Accounts Receivables” of the notes to the financial statements.' [1 p.46].

The emphasis of matter paragraph 1 reads: 'The Company has disclosed Share Application Money which includes IPO subscription money of Tk. 5,739,018, which has remained unadjusted due to non-claimed of general share applicant and includes IPO application refunds not yet settled. The continued presentation overstates the capital position.' Paragraph 4 reads: 'Bank reconciliations contain unadjusted bank interest and charges, old cheques amounting to Tk. 157,810 instances where cheques were issued in excess of bank balances, resulting in negative book balances.' [1 p.43]. The cash-at-bank note prints negative balances at NCC Bank PLC Motijheel (BDT -188,474) and Meghna Bank PLC Motijheel (BDT -1,370,862) [1 p.63]. The key audit matters cover revenue, property, plant and equipment, finance cost and liquidity, inventory, and accounts receivable [1 p.44] [1 p.45] [1 p.46]; the PPE matter adds 'On local procurement, the company has not deducted applicable VAT and TDS' [1 p.44].

Several figures are printed differently in different places. The FY2024 operating cash flow is BDT 111,552,499 on the face of the FY2025 cash flow statement and BDT 71,552,978 in the reconciliation note of the same report [1 p.53] [1 p.71]. Schedule XI prints FY2025 raw-material purchases of BDT 901,213,683 and consumption of BDT 888,480,805; note 25.01 prints BDT 841,384,601 and BDT 828,651,723. Schedule XI prints closing finished goods of BDT 72,365,789; note 8 prints BDT 77,190,175 [1 p.72] [1 p.67] [1 p.62]. The nine-month accounts carry the cover title 'Second Quarter (Q3) Financial Statements 2025-2026' [2 p.1].

Governance: sponsors-directors 37.50% at June 2025, a corporate director sold 3.0m shares in January 2026

At 30-Jun-2025 the shareholding note lists the chairman Mrs. Rumana Kabir (3.31%), the managing director Mr. M.A.Kabir (10.76%), director Mr. Fahim Kabir (3.50%), corporate directors Bidisha International Ltd. (6.78%) and Concrete and Steel Technology Ltd. (11.76%), sponsors Mr. S.M.Fakharuzaman (0.14%) and Mrs. Sultana Parvin (1.25%), and the general public (62.49%) [1 p.63]. The company had 12,263 shareholders [1 p.64]. Since then DSE has published two completed sales of 1,500,000 shares each by Bidisha International Limited (posts 13-Jan-2026 and 26-Jan-2026) and the sale of 105,060 shares by sponsor Mr. S. M. Fakhar-Uz-Zaman (post 2-Apr-2026) [6]. Bidisha's declaration of 7-Jan-2026 gave its holding before the second sale as 36,53,785 shares [6].

The FY2025 board met 11 times. Attendance as printed: Mrs. Rumana Kabir (Chairman) 11, Mr. M.A.Kabir (Managing Director) 11, Mr. Fahim Kabir 10, Mrs. Afrida Farnaz 4, Mr. Abu Hena Islam 9, Mr. Ahmed Hossain (Independent Director) 8 and Mr. Rezaul Karim (Independent Director) 8; the company secretary, Mr. Yeasin Arafat, attended 11 [1 p.71]. Directors' remuneration and fees were BDT 6.14m: managing director BDT 3.6m, director remuneration BDT 2.43m and meeting fees BDT 0.11m [1 p.71]. The directors' report states: 'No related party transaction has been occurred during the year 2024-2025.' [1 p.14]. Note 39, titled 'RELATED PARTY & TRANSACTIONS', prints a total of BDT 6,135,951 of managing director remuneration, director remuneration and board meeting fees [1 p.71]. The related-party note lists these items and no others [1 p.71], and the receivables note states 'There is no debt due by or to directors or other officers of the company' [1 p.62].

The company-information page lists the board as Rumana Kabir (Chairman), M. A. Kabir (Managing Director), Fahim Kabir (Director Finance), Concrete & Steel Technologies Ltd. ('Director (Represented by Mr. Abu Hena Islam)'), Bidisha International ('Director (Represented by Ms. Afrida Farnaz)'), and Md. Rezaul Karim and Ahmed Hossain (Independent Directors) [1 p.3]. The Audit Committee is Md. Rezaul Karim (Chairman), M. A. Kabir (Member), Ahmed Hossain (Member) and Yeasin Arafat (Secretary); the Nomination & Remuneration Committee is Ahmed Hossain (Chairman), Md. Rezaul Karim (Member), Fahim Kabir (Member) and Yeasin Arafat (Secretary) [1 p.3]. Key officers printed: Company Secretary Yeasin Arafat, Head of Internal Audit Ashraful Alam, Finance Director Mr. Fahim Kabir, DGM (Factory) Mr. Ashraful Alam and DGM (Share Department) Mr. Ranjit Kumar Basak; no chief financial officer is named on the page [1 p.3]. The committee reports print different members. The Audit Committee report lists Mr. Md. Rezaul Karim (Chairman), Mr. Ahmed Hossain (Member), Mr. Fahim Kabir (Member) and Mr. Yeasin Arafat (Secretary), and says 'the Committee held four (4) meetings', each attended 4 of 4 [1 p.26]. The company-information page lists M. A. Kabir, and not Fahim Kabir, on the Audit Committee [1 p.3]. The NRC report lists Ahmed Hossain (Chairman), Mr. Md. Rezaul Karim and Mr. Fahim Kabir, and says 'During the year 2024-2025, one meeting of the Nomination and Remuneration Committee was held. All members attended the meeting.' [1 p.23]. The compliance annexure ticks 'Complied' for 5(2)(b), 'The Board shall appoint members of the Audit Committee who shall be non-executive directors of the company excepting Chairperson of the Board and shall include at least 1 (one) independent director' [1 p.32], and for 6(2)(b), 'All members of the Committee shall be non-executive directors' [1 p.34]. Mr. M. A. Kabir is printed as Managing Director and Mr. Fahim Kabir as Director Finance and Finance Director [1 p.3].

The directors' profiles print these positions in other companies: Mrs. Rumana Kabir is 'a Director of Bangladesh Specialized Hospital Ltd.' and has been 'actively involved in Concrete and Steel Technologies Ltd.'; Mr. M. A. Kabir is 'the Founder Managing Director of Concrete and Steel Technologies Ltd. and Bangladesh Specialized Hospital Ltd.'; Mr. Fahim Kabir is 'also a Director of Bangladesh Specialized Hospital Ltd.'; Ms. Afrida Farnaz 'serves as an Executive Director in several associated ventures'; Mr. Abu Hena Islam 'joined Concrete & Steel Technologies Ltd. in 2008, where he continues to serve in a senior capacity' [1 p.9]. The profiles do not state family relationships between the directors, and page 9 prints no profiles of the two independent directors [1 p.9].

The corporate-governance compliance annexure, headed 'Compliance Status of Corporate Governance (2023-2024) Code of BSEC' in the 2024-2025 report, leaves both compliance columns blank for condition 1(2)(a) and remarks: 'We have 2 male independent directors. Steps shall be taken for appointment of (one) female independent director ASAP,' [1 p.29]. The annexure marks the related-party statement under 1(5)(vi) and the explanation of significant deviations from last year's results under 1(5)(xviii) as 'N/A' [1 p.30]. It also marks 1(5)(ix), 'An explanation on any significant variance that occurs between Quarterly Financial performances and Annual Financial Statements', as 'N/A' [1 p.30]; the nine-month EPS was BDT 1.13 and the full-year EPS BDT 0.61, a derived fourth-quarter loss of BDT 0.52 a share [6] [1 p.51]. It ticks 'Complied' for 1(5)(xiv), 'A statement that International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS), as applicable in Bangladesh, have been followed in preparation of the financial statements and any departure there from has been adequately disclosed', for 1(5)(xv), 'A statement that the system of internal control is sound in design and has been effectively implemented and monitored', and for 1(5)(xvii), 'A statement that there is no significant doubt upon the issuer company’s ability to continue as a going concern' [1 p.30]. The auditor's report on the same year qualifies the deferred tax computation, names Sections 240(3) and 242(1) of the Bangladesh Labor Act, refers to bank reconciliations with 'negative book balances', and states that 'the company is facing liquidity constraints reflected through delayed payments of bank and other liabilities' [1 p.42] [1 p.43]. Under 5(6)(a)(ii)(b) to (d) (Audit Committee reporting of suspected fraud, suspected infringement of laws and other matters) both compliance columns are blank and the remark reads 'No such incident was occurred to report' [1 p.33].

Market data: BDT 20.8 close, 38.5x FY2026 EPS, 1.20x NAV

The shares closed at BDT 20.8 on 29-Oct-2026 [12]. Over the 52 weeks of daily closes from 30-Oct-2025 to 29-Oct-2026 the lowest close was BDT 15.7 (13-Nov-2025) and the highest BDT 32.7 (20-May-2026), each reached on one day (unadjusted DSE daily closes, 238 trading days) [12]. DSE sent the company a query on 20-May-2026 about an 'unusual price hike and increase in volume of shares', and the company replied that there was no undisclosed price-sensitive information [6].

At BDT 20.8 the market capitalisation is BDT 1580m [13]. The P/E on FY2026 EPS of BDT 0.54 is 38.5x, the P/B on June 2026 NAV of BDT 17.34 is 1.20x and the 1% cash dividend of BDT 0.10 a share is a 0.48% yield [13]. At past June month-ends the P/E on that year's earnings ranged from 29.6x to 57.6x and the P/B from 1.32x to 3.22x [13].

Peers for reference: RDFOOD FY2025 gross margin 19.4%, finance cost 5.8% of revenue

The table shows FY2025 figures of three other food companies with published AnalystBro notes, for reference, each from its own company-basis statements for the year to 30-Jun-2025. Taufika Foods and Lovello Ice-Cream PLC describes its 'journey within the ice-cream industry' and reports 'Sales' [7 p.26] [7 p.130]. Olympic Industries PLC reports 'Revenue' and prints a unit-wise result headed 'Biscuit & Other' [8 p.10] [8 p.55]. Fine Foods Limited reports revenue from 'Fish' and 'Fingerling' [9 p.39]. The businesses differ; the figures are not ranked.

Gross margin was 19.4% at RDFOOD, 42.3% at Lovello, 23.9% at Olympic and 64.1% at Fine Foods [13]. RDFOOD's finance cost was 5.8% of revenue. Lovello's finance cost was BDT 145.4m on sales of BDT 1151.3m [7 p.130]. Olympic's finance cost was BDT 59.9m on revenue of BDT 27,721.1m [8 p.10].

What's next: record date 9-Dec-2026, AGM 24-Dec-2026, Q1 FY2027 board meeting (inferred mid-November)

The dated events below come from DSE disclosures and the filings. Inferred dates use every printed precedent and are labelled. No date has been notified for the Q1 FY2027 board meeting at 1-Nov-2026. Past items: the Meghna Bank cash credit, time loan and LTR limit of Tk. 400,000,000 printed an expiry date of 31.07.2025, and the Meghna Bank PLC term loan's printed 'Expiry Date' list includes 08.06.2025, 11.10.2026 and 29.08.2026 [1 p.65]; these dates have passed, and the March 2026 balance sheet still shows short-term bank loans of BDT 286.0m [2 p.2]. The renewal terms are not in the corpus at 1-Nov-2026.

Bangladesh's LDC graduation date is 24-Nov-2029 [10] [11]. The company's FY2025 exports were BDT 71.2m [1 p.67]; the filings do not say which markets they went to or whether graduation affects them. The FY2026 annual report, with the FY2026 audit opinion, cost notes and cash flow, is not in the corpus at 1-Nov-2026; the model will be updated in place when it is filed.

Risks: financial expenses at 5.8% of revenue, outside the FY2020-FY2024 range of 2.1-3.6%

Each risk below gives the evidence in the filings; no filing links these risks to a line item, and 'Line it moves' reads 'None disclosed' in every row. The rows state figures; they do not rank the risks.

Key questions: FY2026 finance cost, the audit opinion and bank facility renewals

The filings show revenue up 104% between FY2020 and FY2025, gross margin down from 23.7% (FY2022) to 19.4% (FY2025), financial expenses up from BDT 14.6m to BDT 71.9m, and a qualified FY2025 audit [13] [1 p.42]. On 29-Oct-2026 the shares traded at 38.5x FY2026 EPS and 1.20x June 2026 NAV, with a 0.48% dividend yield [13].

FAQ

What does Rangpur Dairy & Food Products do?

It makes UHT, pasteurised and flavoured milk, ghee, butter, candy and other milk products at a factory in Baldipukur, Rangpur, and sells them mainly in Bangladesh [1 p.54]; FY2025 exports were BDT 71.2m [1 p.67].

When does the company's fiscal year end?

30 June [1 p.51].

What did RDFOOD earn in FY2026?

EPS BDT 0.54, NAV per share BDT 17.34 and NOCFPS BDT 0.22, as announced on DSE on 29-Oct-2026, against BDT 0.61, BDT 16.92 and BDT 0.16 for FY2025 [6].

Is the audit opinion clean?

No. The FY2025 opinion is qualified for deferred tax computed at 15% (an under-provision of approximately Tk. 26,316,016) and for the use of WPPF balances as internal financing [1 p.42].

How much does the company owe banks?

BDT 559.4m at 30-Jun-2025 and BDT 554.8m at 31-Mar-2026, against BDT 153.8m at 30-Jun-2020 [1 p.50] [2 p.2] [5 p.41].

What dividend did RDFOOD declare for FY2026?

1% cash; record date 9-Dec-2026 and AGM 24-Dec-2026 [6].

How much of its capacity does the plant use?

In FY2025 it produced 14,152 tons of fresh and flavoured milk; the printed attainable capacity was 25,000 tons, 57% [1 p.71].

Sources

1. Rangpur Dairy & Food Products Limited Annual Report 2024-2025 (year to 30-Jun-2025) · link · accessed 2026-11-01
2. Rangpur Dairy & Food Products Limited un-audited financial statements, nine months to 31-Mar-2026 · link · accessed 2026-11-01
3. Rangpur Dairy & Food Products Limited Annual Report 2023-2024 · link · accessed 2026-11-01
4. Rangpur Dairy & Food Products Limited Annual Report 2022-2023 · link · accessed 2026-11-01
5. Rangpur Dairy & Food Products Limited Annual Report 2020-2021 · link · accessed 2026-11-01
6. Dhaka Stock Exchange, RDFOOD news archive (company disclosures, 31-Oct-2024 to 1-Nov-2026) · link · accessed 2026-11-01
7. Taufika Foods and Lovello Ice-Cream PLC Annual Report 2024-25 · link · accessed 2026-11-01
8. Olympic Industries PLC audited financial statements, year to 30-Jun-2025 · link · accessed 2026-11-01
9. Fine Foods Limited Annual Report 2024-25 · link · accessed 2026-11-01
10. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
11. The Business Standard, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
12. AnalystBro price data (TradingView feed): DSE:RDFOOD daily and monthly bars to 29-Oct-2026 · link · accessed 2026-11-01
13. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-11-01