Karachi: Shahmurad Sugar Mills Limited has released its un-audited financial statements for the period ending June 30, 2025, highlighting a decline in sugar production due to adverse weather and pest attacks. The report, presented by the Board of Directors, outlines the company's performance in challenging circumstances.
The company reported a decrease in sugarcane crushed from 654,604 metric tons in 2024 to 471,495 metric tons in 2025. Consequently, sugar production fell from 71,905 metric tons to 47,953 metric tons, marking a significant reduction. The sugar recovery rate also declined from the previous year's 10.98% to 10.20%. This decline in production is classified as a very large or significant move.
Financially, Shahmurad Sugar Mills recorded sales revenue of Rs. 17.00 billion, a decrease from the previous period's Rs. 18.74 billion. Despite the challenges, the company achieved a gross profit of Rs. 1.89 billion, with profit for the period reaching Rs. 652.23 million, up from Rs. 284.20 million in the previous year. This increase in profit represents a very large or significant move. The earnings per share rose to Rs. 30.88 from Rs. 13.46.
The Ethanol Division saw a slight increase in production, with 45,693 metric tons produced compared to 45,391 metric tons last year. According to information available from the Pakistan Stock Exchange (PSX), this marginal increase in ethanol production is classified as a minor move. The division's performance was bolstered by effective sales execution and favorable export prices.
Looking ahead, the company anticipates improved sugarcane crop yields in the next crushing season, expected to start in November 2025. This optimism is supported by higher prices and timely payments to growers, along with better water availability. The deregulation of sugarcane pricing by the government is also expected to positively influence future production.
In contrast, the suspension of the GSP+ facility by the European Union may impact export prices, posing challenges for the Ethanol Division. However, Shahmurad Sugar Mills is taking proactive measures to mitigate these effects by seeking new export markets and enhancing cost efficiencies.
The Board of Directors has declared an interim cash dividend of Rs. 7.00 per share, marking a 70% dividend for the period ended June 30, 2025. This decision was made in a meeting held on July 23, 2025.
With the re-election of its Board of Directors for a three-year term, the company continues to focus on sustaining its presence in international markets and contributing to foreign exchange earnings through strategic operations.