Karachi: The directors of Al-Abbas Sugar Mills Ltd. have released the company's unaudited condensed interim financial information for the nine-month period ending June 30, 2025, revealing a decrease in profit after taxation compared to the previous year. The financial results show a profit after tax of Rs. 1.08 billion, down from Rs. 1.64 billion in the same period last year. Basic earnings per share have also decreased to Rs. 62.29 from Rs. 94.43.
On July 29, 2025, the Board of Directors declared an interim cash dividend of Rs. 25 per share, or 250%, for the period ending June 30, 2025. This is in addition to an earlier paid interim dividend of Rs. 12 per share, equating to 120%. The interim financial statements do not reflect the effect of this final cash dividend.
In the sugar division, net sales rose to Rs. 5.28 billion, with increased dispatch volumes and improved pricing contributing to this uplift. The division benefited from a provincial government export subsidy and reduced finance costs, although overall profitability was hindered by higher costs. The division's profit after tax increased to Rs. 228.31 million from Rs. 192.29 million last year.
The ethanol division reported a decrease in revenue, mainly due to lower sales prices. Revenue fell by Rs. 1.41 billion, driven by the decline in sales prices. Profit after tax in this segment dropped to Rs. 892.36 million from Rs. 1.47 billion the previous year. Ethanol production also saw a decline attributed to water shortages, with output decreasing from 32,471 metric tons to 31,586 metric tons.
The other reportable segment, which includes operations at the Dhabeji and tank terminal, incurred a net loss of Rs. 39.10 million for the nine-month period. Maintenance work at the tank terminal is approaching completion, with a return to full operations anticipated soon. The division's tank terminal, licensed for hazardous materials storage, is undergoing maintenance, with plans for resumed operations upon completion.
The company is urging the government to deregulate the sugar industry to allow market dynamics to dictate pricing. Current government policies, including price controls and import allowances, have added pressure on the industry. Most recently, the Federal Board of Revenue (FBR) suspended S-Tracking invoices, leading to halted sugar dispatches nationwide. This action compelled the Pakistan Sugar Mills Association (PSMA) to cap the ex-factory price at Rs. 165 per kilogram for non-industrial buyers, conflicting with the sales tax mechanism.
According to information available from the Pakistan Stock Exchange (PSX), Al-Abbas Sugar Mills Ltd. is working to enhance productivity and profitability across its divisions. The company is addressing challenges in the evolving sugar and ethanol industry landscape, with a focus on strategic measures to counter the impacts of regulatory constraints and rising costs.