Islamabad: Chashma Sugar Mills Limited has reported a net loss of PKR 1.24 billion for the six-month period ending March 31, 2025, compared to a net profit of PKR 44.75 million in the same period last year. This downturn is attributed to a range of operational and external factors affecting the company’s financial performance.

According to the Directors' Review Report, the company's sugar production decreased to 144,654 metric tons from 171,591 metric tons in the previous year, despite starting sugarcane crushing earlier on November 21, 2024. The sucrose recovery rate also saw a slight decline from 9.94% to 9.74%. The ethanol fuel plant production remained relatively stable, producing 17,314 metric tons until March 31, 2025.

The report highlights that the Provincial Governments did not regulate sugarcane prices this season, which contributed to an increase in operational costs. The company faced a 16.7% decrease in net sales, primarily due to reduced demand in local and export markets. Despite stable selling prices, they could not compensate for the rising cost of sales, exacerbated by regulatory delays in adjusting sugar prices.

According to information available from the Pakistan Stock Exchange (PSX), the company faced additional challenges with high sugarcane rates and fixed overheads amidst lower production levels. Operating expenses were further strained by increased freight and fuel costs, along with additional support costs to maintain market share. Although there was a downward trend in mark-up rates, financial costs remained elevated due to significant borrowings.

In efforts to stabilize performance, the management is focusing on cost control, financial restructuring, and exploring new revenue opportunities. The board and shareholders have approved the sale of company property located at Plot No. Pe.3, Blue Area, Sector F.9/G-9, Main Jinnah Avenue, Islamabad, measuring 1,333.33 square yards, as part of these efforts.

The report concludes with an acknowledgment of the company's staff for their dedication, as the management seeks to navigate these economic challenges while adhering to consistent accounting policies used in previous financial statements.