Lahore: Noon Sugar Mills Limited has released its financial results for the half year ended March 31, 2025, revealing a nuanced picture of its operational and financial landscape. The company saw an increase in net sales but experienced a decline in profits compared to the previous year, according to the Directors' Review of the condensed interim financial statements.
The company reported net sales of Rs.5,879 million for the six-month period, a rise from Rs.5,072 million during the same period in 2024. Despite this increase in revenue, the gross profit fell sharply to Rs.344 million from Rs.1,079 million in the previous year. Earnings before tax decreased to Rs.207 million from Rs.395 million, while earnings after tax dropped to Rs.134 million from Rs.282 million in the corresponding period last year. Earnings per share were noted at Rs.8.08, down from Rs.17.07.
According to information available from the Pakistan Stock Exchange (PSX), the Sugar Division of Noon Sugar Mills Limited reported operational changes during the reviewed period. The segment operated for 104 days, crushing 638,503 metric tons of sugarcane and producing 63,810 metric tons of sugar. This represented a decrease from the previous year, where 712,164 metric tons of sugarcane were crushed and 73,597 metric tons of sugar were produced over 98 days. The average sucrose recovery slightly declined to 10.00% from 10.33%.
In the Distillery Division, the company processed 41,051 metric tons of molasses, an increase from 34,509 metric tons in 2024, and produced 8,094 metric tons of ethanol with an average yield of 246 liters per metric ton of molasses. This marked an improvement from the previous year’s production of 6,740 metric tons and a yield of 244 liters per metric ton.
The broader agricultural economy of Pakistan showed signs of struggle, impacting the company’s operations. Nonetheless, the sugar industry benefited from an increase in sugarcane cultivation due to competitive procurement prices. The Punjab Government's decision not to announce a minimum support price for sugarcane, allowing market forces to dictate pricing, is expected to encourage higher quality cultivation.
Conversely, the Distillery Division faced challenges from reduced international demand for ethanol amid global inflation and lower fuel prices, compounded by increased raw material costs and taxation.
Looking ahead, the company remains optimistic about the Sugar Division's potential to leverage rising local sugar prices to offset earlier operational losses. Meanwhile, strategic initiatives are being planned to address the Distillery Division's challenges and maintain shareholder value.
The Board of Noon Sugar Mills Limited expressed gratitude to its stakeholders and employees for their continued support and effort during these challenging times.