Karachi: Al-Noor Sugar Mills Limited has released its unaudited financial results for the period ending June 30, 2025, revealing a significant decline in both sugar production and profit compared to the previous year. The report, presented by the Board of Directors, highlights the challenges faced by the company due to adverse weather conditions and pest attacks, resulting in a reduced yield of sugarcane.
In the twelve months ending June 30, 2025, Al-Noor Sugar Mills crushed 747,944 metric tons of sugarcane, a substantial decrease from the 1,109,983 metric tons processed during the same period last year. This reduction led to a corresponding drop in sugar production from 119,117 metric tons to 71,515 metric tons. The decrease in sugar production, attributed to the non-availability of raw materials, has been classified as a very large or significant move. The company also reported a decline in the sugar recovery rate from 10.73% to 9.56%.
Financially, the company recorded sales revenue of 11.54 billion rupees, down from 14.33 billion rupees in the previous year. The cost of sales also decreased, resulting in a gross profit of 1.70 billion rupees, a big move from the 2.53 billion rupees earned last year. According to information available from the Pakistan Stock Exchange (PSX), the company's profit after taxation fell to 39.98 million rupees from 96.52 million rupees, reflecting a very large or significant move in profitability. Earnings per share dropped from 4.71 rupees to 1.95 rupees.
Despite the downturn in sugar production, the company's Medium Density Fiberboard (MDF) division showed a positive trajectory. The MDF division produced 50,733 cubic meters of board, reflecting a minor move in production increase from the previous year's 48,545 cubic meters.
Looking forward, the company anticipates an improvement in the next sugarcane crushing season, expected to begin in November 2025. The optimism is driven by higher crop prices and timely payments to growers, alongside improved natural rainfall and water availability. Additionally, recent government deregulation of the sugarcane pricing mechanism is expected to benefit the industry.
The MDF division is projected to maintain its sustainable performance, having established a strong presence in domestic and international markets. The Board of Directors confirmed there have been no changes in its composition and reiterated its commitment to navigating the challenges and achieving better results in the future.