Karachi: Khair Sugar Mills Limited has released its financial and operational results for the fiscal year ending December 2025. The company reported a notable decline in both sugar production and average sucrose recovery, aligning with a broader trend of operational contraction seen this year.

The mill crushed 740,684 metric tons of sugarcane in 2025, down from 831,344 metric tons in 2024, marking an 11% decrease. Concurrently, sugar production fell to 71,476 metric tons from 89,731 metric tons, translating to a 20% drop. The average sucrose recovery rate also decreased to 9.65% from the previous 10.79%, indicating a moderate move in the operational efficiency of the company.

In terms of financial performance, the company saw an increase in its shareholders' equity, reaching 5.00 billion from 4.06 billion recorded in the previous year. Non-current liabilities also rose to 1.72 billion from 1.19 billion, while current liabilities increased to 3.96 billion from 3.54 billion. As a result, the total equity and liabilities climbed to 10.68 billion from 8.79 billion.

Fixed assets saw an increase to 6.39 billion from 4.92 billion, while other non-current assets rose to 76.67 million from 31.15 million. Current assets also increased, reaching 4.21 billion from 3.84 billion, leading to a total asset valuation matching the total equity and liabilities at 10.68 billion.

The cash flow statement highlighted a significant change in financing activities, which amounted to 708.62 million, a reversal from the negative 2.11 million in the previous year. Operating activities, however, reported a cash outflow of 323.29 million, a shift from an inflow of 208.90 million, while investing activities saw a cash outflow of 248.80 million compared to 152.84 million the previous year. Consequently, cash and cash equivalents at the end of the year rose to 218.77 million from 82.25 million.

According to information available from the Pakistan Stock Exchange (PSX), the company's gross profit margin slightly declined to 10.28% from 10.31%, while the net profit margin showed a minor move, increasing to 0.55% from 0.53%. Liquidity ratios remained stable, with the current ratio at 1.06 times compared to 1.08 times in 2024, and the quick/acid test ratio improving to 0.66 times from 0.45 times.

Khair Sugar Mills Limited's financial and operational adjustments reflect significant movements within the sugar industry, affecting its production capabilities and financial health for the year 2025.