Lahore: Adam Sugar Mills Limited has released its unaudited financial results for the third quarter ending June 30, 2026, revealing a challenging period marked by a net loss. The company reported a loss of PKR 95.77 million for the nine-month period, a stark contrast to the profit of PKR 52.92 million recorded in the same period last year. This comes as the company navigates a domestic surplus and uncertain export conditions.
For the nine-month period ending June 30, 2026, Adam Sugar Mills produced 78,488 metric tons of sugar, an increase from the 57,442 metric tons produced in the same period last year. The crushing season spanned 127 days, longer than the previous year's 115 days, with a recovery rate improvement to 9.66% from 8.82%. The company attributes this improvement to higher crop yields across sugarcane-growing regions.
Despite the increase in production, the company faced declining sales revenue, reporting PKR 7.49 billion, down from PKR 8.19 billion in the previous year. The cost of sales also decreased to PKR 7.07 billion from PKR 7.63 billion, resulting in a gross profit of PKR 413.32 million, compared to PKR 556.92 million last year.
The directors' report highlights the pressure on ex-mill sugar prices due to government indecision on exporting surplus sugar stocks, with an estimated domestic surplus of 1.00 million metric tons. According to information available from the Pakistan Stock Exchange (PSX), these market conditions have significantly impacted the company's financial performance.
Operating expenses slightly reduced to PKR 192.55 million from PKR 199.68 million, but finance costs increased to PKR 275.13 million from PKR 231.75 million, reflecting higher borrowing costs. Other income saw a moderate increase, reaching PKR 26.66 million from PKR 15.42 million.
The company's credit rating was reaffirmed by VIS Credit Rating Company Limited in May 2026, maintaining a Long-Term Rating of A- and a Short-Term Rating of A2, indicating a satisfactory credit profile despite the financial challenges.
Looking forward, the company emphasizes the need for government support and a deregulation policy to align local prices with international markets. The ongoing regional conflict and volatility in fuel prices continue to pose challenges to the business environment.
Adam Sugar Mills' total assets increased to PKR 12.62 billion from PKR 8.53 billion as of September 30, 2025, with non-current assets including property, plant, and equipment valued at PKR 8.18 billion. Current liabilities saw a substantial rise to PKR 4.51 billion from PKR 1.72 billion, driven by short-term borrowings.
The company acknowledges the dedication of its staff and expresses gratitude to its bankers and shareholders for their continued support amidst these challenging times.