Karachi: Adam Sugar Mills Limited has reported its financial results for the fiscal year ending September 30, 2025, showcasing a significant decrease in profit after taxation, despite a notable increase in net turnover. The company's profit after tax was reported at PKR 46,133,837, down from PKR 73,085,319 in the previous year, marking a very large or significant move. The company faced various challenges, including low sucrose recovery due to crop diseases and governmental interventions such as lifting embargoes and portal closures. However, the net turnover saw a 34% growth, reaching PKR 10.841 billion, attributed to efficient management and favorable selling rates during certain months.
For the operational period, the company crushed 651,341 metric tons of cane, down from 684,186 metric tons the previous year. The sugar recovery rate dropped from 10.13% to 8.81%, affecting overall sugar production, which decreased to 57,442 metric tons. The crushing season spanned 115 days, a slight increase from the previous year's 104 days. Earnings per share (EPS) also declined, falling from 4.23 to 2.67.
According to information available from the Pakistan Stock Exchange (PSX), Adam Sugar Mills experienced various operational and financial constraints due to the government's partial deregulation, which only affected the cane purchase price. The selling price remained regulated, linked to the Pakistan Bureau of Statistics (PBS) rates, and subject to monthly adjustments.
In terms of assets, the company's total assets decreased to PKR 8.531 billion from PKR 10.543 billion the previous year. Noteworthy is the decrease in stock in trade from PKR 3.249 billion to PKR 801.93 million, reflecting a strategic reduction in inventory. The company maintained a strong equity position, with share capital and reserves totaling PKR 5.098 billion. However, current liabilities were significantly reduced to PKR 1.724 billion from PKR 3.934 billion.
Looking ahead, the company anticipates a promising outlook for the upcoming sugarcane crop, both in quantity and quality, due to increased acreage and better yields. As of December 31, 2025, the company had crushed 222,261 metric tons of sugarcane with a recovery rate of 9.14%, producing 19,420 metric tons of sugar. While challenges persist, including governmental regulations, the company remains hopeful for timely government decisions on sugar exports to capitalize on international market demand.
The directors of Adam Sugar Mills, including Mr. Junaid G. Adam, Mr. Ghulam Ahmed Adam, and others, confirm adherence to the Code of Corporate Governance, ensuring transparency and accuracy in financial reporting. The company also notes the completion of the privatization of Pakistan International Airlines (PIA) as a positive indicator of the government's intentions to involve the private sector in business operations, potentially benefiting the overall economy.