Karachi: Adam Sugar Mills Ltd. reported a significant decline in profits for the nine months ending June 30, 2026, as the company's financial results revealed substantial increases in finance costs and other operating expenses. According to a statement released by the Board of Directors after their meeting on July 27, 2026, the company announced no cash dividend, bonus shares, or right shares for shareholders.
The company's sales revenue for the nine-month period decreased to 7.49 billion rupees from the previous year's 8.19 billion rupees. The cost of sales also saw a slight reduction, registering at 7.07 billion rupees compared to 7.63 billion rupees in the same period last year. Despite a gross profit of 413.32 million rupees, down from 556.92 million rupees, administrative expenses rose to 178.46 million rupees from 160.85 million rupees, contributing to a decline in operating profit to 220.77 million rupees from 357.24 million rupees last year.
Finance costs have surged to 275.13 million rupees from 231.75 million rupees, and other operating expenses increased to 14.50 million rupees from 8.61 million rupees. These rising costs led to a loss before taxation of 111.77 million rupees, a sharp contrast to the profit of 63.36 million rupees recorded in the previous year. The loss after taxation stood at 95.77 million rupees compared to a profit of 52.92 million rupees in the prior year.
According to information available from the Pakistan Stock Exchange (PSX), Adam Sugar Mills Ltd.'s earnings per share have dropped significantly, with a loss of 5.54 rupees per share compared to earnings of 3.06 rupees per share in the previous year. This decline is classified as a very large or significant move.
The company’s statement of financial position shows total assets amounting to 12.62 billion rupees, up from 8.53 billion rupees as of September 30, 2025. The increase in assets is largely attributed to a rise in stock in trade, which reached 3.46 billion rupees from 801.93 million rupees.
On the liabilities front, short-term borrowings have increased dramatically to 3.29 billion rupees from 870.10 million rupees, while trade and other payables have grown to 872.53 million rupees from 615.70 million rupees. The company's total equity also saw an increase, reaching 6.14 billion rupees from 5.10 billion rupees, driven primarily by a rise in the surplus on revaluation of property, plant, and equipment.
Despite the current financial struggles, the company has committed to transmitting its quarterly report for the period ending June 30, 2026, through the Pakistan Unified Corporate Action Reporting System (PUCARS) within the specified timeframe.