Lahore: Adam Sugar Mills Ltd. has disclosed its unaudited financial statements for the nine-month period ending June 30, 2025, revealing a substantial decrease in sugar production against the previous year's figures. The company reported a Big move in production, with a total of 57,442 metric tons of sugar produced, down from 69,369 metric tons during the same period last year. The reduction in output follows a shortened operating duration of 115 days compared to 104 days in the previous season.

During the 2024-25 season, Adam Sugar Mills crushed 651,341 metric tons of cane, a decrease from the 684,186 metric tons processed in the prior season. The recovery rate also saw a decline, recorded at 8.82% this season, down from 10.13% previously. The company attributed the decline to significantly lower yields and reduced sucrose recovery across sugarcane-growing regions.

In a move to stabilize the sugar market, the Government and the Pakistan Sugar Mills Association (PSMA) reached a consensus on July 14, 2025, to set the ex-mill sugar price at PKR 165 per kilogram, effective from July 15, 2025. According to information available from the Pakistan Stock Exchange (PSX), this price is set to increase by PKR 2 per kilogram on the 15th of each subsequent month until the 2025-26 season commences. PSMA members have agreed to this pricing voluntarily, which is below current market rates, while the Government is tasked with ensuring retail price reductions.

Looking ahead, the federal budget for the 2025-26 fiscal year presents challenges for businesses, including a new clause in the Income Tax Ordinance, 2001. This clause mandates that any payment exceeding PKR 200,000 against a single invoice, if not conducted via banking or digital channels, will result in the disallowance of 50% of the claimed expenditure. This provision could foster an unfavorable business environment and potentially lead to capital flight.

Despite initial surveys predicting a bumper sugarcane crop for the upcoming season, the Government's interventions are expected to reduce crop prices for farmers. While a free-market policy on sugarcane support prices exists, continued government intervention in finished sugar pricing disrupts market dynamics and presents challenges for mills seeking profitability.

The company's credit rating remains stable, as reaffirmed by VIS Credit Rating Company Limited in May 2025, with long-term and short-term ratings of A_ and A2, respectively. The board expressed appreciation to the company's employees, bankers, and shareholders for their ongoing support and trust.