Lahore: Baba Farid Sugar Mills Limited, one of the prominent players in Pakistan's sugar industry, has reported a challenging financial period for the nine months ending June 30, 2026. According to the directors' review released in their unaudited financial report dated July 30, 2026, the company's financial performance was notably impacted by increased costs despite operational improvements.
The company commenced its 2025-26 crushing season on November 20, 2025, successfully processing 587,963.945 metric tons of sugarcane to produce 59,060.750 metric tons of sugar. This reflects an average recovery rate of 10.041%, an improvement from the previous metric of 9.653% as of March 31, 2025, when the production was 54,991.500 metric tons from 569,620.090 metric tons of sugarcane. The enhancement in recovery rate underscores the company's focus on operational efficiency and improved plant performance.
Despite operational success, the company faced significant challenges in sugarcane procurement. Heightened competition among sugar mills in the region resulted in increased sugarcane prices, thereby escalating the overall cost of production. The company managed to sustain an adequate supply of sugarcane through continuous engagement with growers and strategic support efforts.
Financially, the company encountered pressure due to high procurement costs and rising energy prices influenced by global economic and geopolitical factors. Net sales for the stated period amounted to Rs. 2,665.987 million, a significant decline from Rs. 7,847.777 million during the same period last year. The company reported a loss before taxation of Rs. 383.499 million, contrasting with a profit before taxation of Rs. 600.284 million in the previous year.
According to information available from the Pakistan Stock Exchange (PSX), these figures represent a significant move in the company's financial trajectory. The management remains focused on implementing cost-control measures and operational improvements to counteract the adverse effects of rising production costs and the difficult business climate.