Karachi, The Board of Directors of Baba Farid Sugar Mills Limited convened on Tuesday, July 25th, 2023, at the company's registered office in Gulberg-TII, Lahore, to discuss and recommend the financial performance and corporate actions for the quarter ended June 30, 2023.

In a notable turn of events, the company reported positive financial results for the quarter, marking a significant recovery from previous losses. According to the financial statements presented during the meeting, the company's net sales for the quarter ended June 30, 2023, amounted to Rs. 1,740,484,366, compared to Rs. 1,764,917,021 during the same period in the previous year. Despite a slight decrease in sales, the company managed to improve its gross profit, recording Rs. 173,040,028 compared to a loss of Rs. 11,810,708 in the corresponding quarter of the previous year.

Operating expenses were also a key factor in the company's performance. Selling and distribution expenses were reported at Rs. 28,882,660, down from Rs. 24,592,902 in the previous year's quarter. Similarly, the company reduced its operating loss from Rs. 36,403,610 to Rs. 144,157,368, indicating a positive trend in operational efficiency.

The financial charges, which have previously burdened the company, saw a significant reduction. Financial charges amounted to Rs. 129,703,937 for the quarter, compared to Rs. 79,529,822 in the same period of the previous year. This reduction contributed to the overall improvement in the company's profit before taxation, which stood at Rs. 14,453,431 for the quarter, as opposed to a loss of Rs. 115,933,432 in the corresponding period last year.

Despite these positive developments, the company still reported a loss after taxation of Rs. 6,948,573. Nevertheless, this is a significant improvement from the loss of Rs. 252,680,533 in the previous year's quarter. The company's earnings per share also showed improvement, with a loss of Rs. 0.74 compared to a loss of Rs. 13.24 in the same quarter last year.

In light of these financial results, the Board of Directors recommended various corporate actions for shareholder consideration. These included an Interim Cash Dividend for the quarter at Rs. NIL per share, Interim Bonus shares, and the issuance of Right Shares at par/at a discount/premium of Rs. NIL per share.

The Share Transfer Books of the Company will be closed from a date yet to be announced. Transfers received within this period will be treated in time for the purpose of the announced entitlements.

Baba Farid Sugar Mills Limited's recent financial results and proposed corporate actions are expected to have a significant impact on the company's shareholders and its future performance in the market.