Karachi: Al-Abbas Sugar Mills Limited has announced its financial results for the quarter ending December 31, 2024, revealing a significant decline in net profits compared to the same period last year. The company reported a profit after taxation of 164.35 million, a stark decrease from the 1.12 billion recorded in the previous year's corresponding quarter. The Board of Directors, in a meeting held on January 28, 2025, opted not to declare any cash dividends, bonus shares, or right shares for this period.

The company's net turnover for the quarter stood at 4.77 billion, compared to 5.86 billion in the same quarter of the previous year. Despite the drop in sales, the cost of sales rose to 4.35 billion from 3.98 billion, squeezing the gross profit to 424.19 million, down from 1.89 billion in the prior year. The increased cost of sales significantly impacted the operating profit, which fell to 207.33 million from 1.35 billion.

Distribution costs also saw a reduction, amounting to 119.65 million from 397.79 million in the previous year, while administrative expenses slightly increased to 49.67 million from 47.58 million. Other operating expenses were curtailed to 47.54 million from 89.11 million, aiding in offsetting some of the adverse impacts on profitability. Finance costs reduced to 83.50 million from 127.02 million, while other income fell to 124.37 million from 141.32 million.

According to information available from the Pakistan Stock Exchange (PSX), the company's total assets increased to 12.77 billion from 12.15 billion as of September 2024. Non-current assets were recorded at 1.67 billion, with current assets at 11.10 billion. Despite the increase in assets, the decline in net profits and earnings per share—down to 9.47 from 64.53—reflects the financial challenges the company faces.

The quarter saw a net cash generation from operating activities at 3.13 billion, a significant improvement from a negative cash flow of 526.37 million in the previous year. However, investing activities recorded a net cash outflow of 2.88 billion, compared to a positive inflow of 665.99 million last year. The financing activities resulted in a net cash outflow of 130.61 million, slightly more than the 112.27 million outflow recorded in the previous year.

In terms of liabilities, current liabilities increased to 4.49 billion from 4.08 billion, while non-current liabilities increased marginally to 66.22 million from 64.20 million. The company maintained its authorized capital at 400.00 million, with issued, subscribed, and paid-up capital remaining at 173.62 million.

Despite the financial downturn, Al-Abbas Sugar Mills Limited managed to maintain a stable cash and bank balance of 212.56 million as of December 31, 2024, compared to 86.06 million at the beginning of the quarter. The company's financial position reflects the challenges of rising costs and decreasing turnover, necessitating strategic adjustments in the coming quarters to enhance profitability and shareholder value.