Lahore: Jauharabad Sugar Mills Limited has released its unaudited financial results for the quarter ending December 31, 2024, revealing a decline in profitability. The Board of Directors convened on January 29, 2025, to review the financial performance, which showed a mixed picture for the company. The meeting, held at 125-B, Quaid-e-Azam Industrial Estate, Kot Lakhpat, Lahore, concluded with no recommendations for cash dividends, bonus shares, or right shares, keeping shareholders without additional entitlements.
The company's net sales for the quarter increased to 2.77 billion rupees from 2.46 billion rupees in the same period the previous year. Despite this rise in sales, the cost of sales also surged to 2.58 billion rupees from 2.25 billion rupees, resulting in a decreased gross profit of 186.56 million rupees compared to 207.56 million rupees in the corresponding period of 2023.
Operating expenses showed a slight increase, with administrative expenses reaching 55.52 million rupees and distribution costs at 3.55 million rupees, totaling operating expenses of 59.06 million rupees. Consequently, the operating profit fell to 127.50 million rupees from 148.81 million rupees in the previous year.
The financial cost for the quarter was 56.76 million rupees, an increase from 53.20 million rupees the previous year, while other income decreased to 4.84 million rupees. These changes left the company with a profit before taxation and levy of 65.89 million rupees, down from 92.69 million rupees in the prior year.
The levy imposed amounted to 32.55 million rupees, slightly higher than the 31.78 million rupees in the previous year, resulting in a profit before taxation of 33.34 million rupees. After accounting for taxation, which notably increased to 13.88 million rupees from a tax gain of 4.49 million rupees the previous year, the profit after taxation stood at 47.22 million rupees, compared to 56.43 million rupees in 2023.
According to information available from the Pakistan Stock Exchange (PSX), the earnings per share reflected this downturn, decreasing to 1.38 rupees from 1.65 rupees in the previous year.
In terms of assets, the company's non-current assets remained stable, with property, plant, and equipment valued at 10.27 billion rupees. Current assets saw a reduction to 3.94 billion rupees from 4.07 billion rupees, primarily due to changes in stock-in-trade and trade debts. Total assets were reported at 14.21 billion rupees, a slight decrease from 14.34 billion rupees at the end of the corresponding period in 2023.
The financial results of Jauharabad Sugar Mills Limited indicate challenges in maintaining profitability despite increased sales, with higher costs and reduced other income impacting overall performance.