Karachi: Adam Sugar Mills Ltd. has announced its un-audited financial results for the quarter ended December 31, 2024, revealing a notable decline in profit. The Board of Directors, in their meeting held on January 29, 2025, decided not to recommend any cash dividends, bonus shares, or right shares, stating the financial results in compliance with Notice No. PSX/N-062 dated January 10, 2025.

On January 29, 2025, the company presented its financial statements including the Statement of Profit or Loss, Statement of Financial Position, Statement of Cash Flows, and Statement of Changes in Equity. The quarterly report will be transmitted through PUCARS separately within the specified time.

The financial results showed net sales revenue at 3.88 billion rupees for Q4 2024, up from 1.80 billion rupees during the same period last year. However, the cost of sales also increased significantly to 3.71 billion rupees from 1.30 billion rupees, resulting in a gross profit of 171.56 million rupees, a sharp decline from 497.53 million rupees in Q4 2023.

Operating profit stood at 76.94 million rupees, a considerable drop from 448.33 million rupees in the previous year, impacted by higher administrative expenses and selling costs. Finance costs and other expenses further eroded profitability, leading to a loss before levies and taxation of 39.07 million rupees, compared to a profit of 407.42 million rupees in Q4 2023.

According to information available from the Pakistan Stock Exchange (PSX), taxation led to a further reduction in profit, resulting in a post-taxation loss of 11.04 million rupees, contrasting sharply with a profit of 234.75 million rupees in the same period last year. The company's earnings per share also reflected this downturn, showing a negative 0.64 rupees compared to the positive 13.58 rupees in the previous year.

The company's total assets as of December 31, 2024, were registered at 9.58 billion rupees, down from 10.54 billion rupees in the prior quarter. Non-current assets amounted to 5.37 billion rupees, while current assets were reported at 3.22 billion rupees.

Equity and liabilities stood at 5.22 billion rupees, compared to 5.26 billion rupees on September 30, 2024. The company's non-current liabilities decreased slightly to 1.25 billion rupees from 1.37 billion rupees, whereas current liabilities were reduced to 3.11 billion rupees from 3.92 billion rupees.

The sugar industry, designated under the consumer staple sector, has been grappling with fluctuating market conditions, affecting the profitability and operational efficiency of companies like Adam Sugar Mills Ltd. The company aims to navigate these challenges by optimizing operational efficiency and cost management in forthcoming quarters.