Karachi: Al-Abbas Sugar Mills Limited announced a significant decline in its financial performance for the half-year period ending March 31, 2026, as detailed in a report released on May 18, 2026. The report, which was approved by the company’s Board of Directors during a meeting in Karachi, highlighted a notable drop in net turnover and profits compared to the previous year.
The company reported a net turnover of Rs. 4.55 billion for the half-year, down from Rs. 6.91 billion in the same period of 2025. This constitutes a very large or significant move in turnover, indicating a substantial reduction in sales. The cost of sales decreased to Rs. 3.41 billion from Rs. 5.70 billion, reflecting a decrease in production expenses. Consequently, the gross profit fell to Rs. 1.15 billion from Rs. 1.21 billion.
Administrative expenses increased to Rs. 117.54 million from Rs. 101.50 million, while distribution costs rose to Rs. 538.81 million from Rs. 303.90 million. Operating profit experienced a big move downward, amounting to Rs. 451.87 million compared to Rs. 694.56 million in the previous year. Finance costs decreased slightly to Rs. 101.42 million from Rs. 137.51 million, and other income dropped to Rs. 248.29 million from Rs. 402.98 million.
The profit before taxation stood at Rs. 490.78 million, showing a very large or significant move downwards from Rs. 834.82 million in 2025. After accounting for taxation of Rs. 119.28 million, the profit after taxation was Rs. 371.50 million, which represents a very large or significant move down from Rs. 601.18 million last year.
According to information available from the Pakistan Stock Exchange (PSX), Al-Abbas Sugar Mills Limited declared an interim cash dividend of Rs. 7.50 per share, equivalent to 75%. This is the first dividend declared for the quarter, with no previous interim dividends issued during this period.
The report also contained a note of emphasis from auditors regarding the unresolved legal proceedings initiated by a non-executive director against the company, which introduces uncertainty about future financial outcomes.
The company’s share transfer books will remain closed from June 01, 2026, to June 03, 2026, for the purpose of determining entitlement for the declared dividend. Transfers received by May 29, 2026, will be considered timely for this purpose.
Al-Abbas Sugar Mills operates within the designated market category of sugar production and sales. The company’s financial results underscore the challenges faced in the current economic climate, further compounded by the ongoing legal issues.