Karachi: Al-Abbas Sugar Mills Limited released its unaudited condensed interim financial information for the quarter ended December 31, 2025. The report highlights a decline in sugar segment sales and a notable increase in profitability primarily due to other income, as indicated in the Directors’ Review Report dated January 29, 2026.

In the sugar segment, the company reported net sales of Rs. 1,735.393 million for the quarter, a decrease from Rs. 2,368.828 million in the same period last year. This represents a reduction of Rs. 633.435 million. The cost of sales also decreased to Rs. 1,185.461 million from Rs. 2,037.731 million. Gross profit, however, increased to Rs. 549.932 million from Rs. 331.097 million, reflecting a stronger margin despite reduced sales volume.

Distribution costs saw a significant increase to Rs. 308.434 million from Rs. 79.699 million. After accounting for administrative expenses, operating segment results were Rs. 216.172 million, slightly down from Rs. 229.407 million in the prior year. The profit after taxation was Rs. 108.787 million, down from Rs. 151.596 million, indicating a big move.

According to information available from the Pakistan Stock Exchange (PSX), the company’s ethanol segment faced challenges as well. Ethanol sales amounted to Rs. 943.263 million, a decline from Rs. 2,397.526 million in the previous year. The segment’s gross profit fell to Rs. 30.246 million from Rs. 112.603 million. The loss after taxation for this segment was Rs. 17.237 million, improved from a loss of Rs. 48.404 million, marking a moderate move.

The operational performance of the sugar segment was impacted by a delayed start to the crushing season, commencing on December 5, 2025, as opposed to November 21, 2024, in the previous year. The mill operated for 21 days compared to 36 days in the prior period, resulting in a reduced crushing volume of 104,523 metric tons, down from 173,542 metric tons, and a production decrease to 9,645 metric tons from 15,273 metric tons.

Despite these operational setbacks, the Board of Directors proposed a final cash dividend of Rs. 13 per share for the year ended September 30, 2025. This proposal is subject to approval at the upcoming Annual General Meeting scheduled for January 28, 2026. The financial statements have not yet accounted for the proposed dividend.

Al-Abbas Sugar Mills’ financial performance highlights the volatility and challenges within the sugar industry, with market conditions and operational hurdles influencing quarterly outcomes.