Karachi: Dewan Sugar Mills Limited has announced a significant financial loss for the nine months ending June 30, 2025, as per the company's condensed unaudited interim financial information. The company's financial performance faced major setbacks this period, highlighting ongoing challenges within Pakistan's second-largest agro-based industry, the sugar sector.

Net sales for the period under review fell significantly to 1.28 billion rupees from the previous year's 2.07 billion rupees. The company reported a gross loss of 662.04 million rupees, a considerable increase from the previous year's gross loss of 299.93 million rupees. The net loss after tax also rose significantly to 714.54 million rupees, up from 417.22 million rupees in the same period last year.

The sugar segment of Dewan Sugar Mills resumed operations on January 22, 2025, after a non-operational crushing season in 2023-24 due to technical and overhauling issues. The plant operated for a brief 24-day period during the review period. Dewan Sugar Mills' management remains optimistic about improving capacity utilization and achieving better results in the upcoming season.

The distillery segment saw a notable decrease in alcohol production, generating 2,519 tons compared to 6,438 tons in the same period last year. The operating loss in this segment increased to 225.90 million rupees, from 98.86 million rupees previously. The losses were attributed to underutilization due to decreased global demand, declining sale prices, and rising costs of raw materials and transportation. The company is implementing cost-cutting measures and developing a power project to enhance energy supply efficiency.

The chipboard segment reported production of 57,830 sheets, a significant increase from the previous year's 29,510 sheets. Despite increased production, the segment suffered an operating loss of 6.12 million rupees, compared to a 2.58 million rupee loss in the prior period. Management is concentrating on producing value-added products and high-quality sheets to turn around this segment's financial performance.

The polypropylene unit remains non-operational due to working capital constraints.

According to information available from the Pakistan Stock Exchange (PSX), Dewan Sugar Mills operates within the sugar and allied industries category. The company's management expressed a commitment to overcoming current challenges and improving operational efficiency across all segments.