Lahore: The Directors of Baba Farid Sugar Mills Limited have released the un-audited financial results for the half-year ending March 31, 2026, revealing a notable decline in financial performance due to increased production costs and geopolitical tensions.
The company reported a significant operational performance with a total of 597,963.945 metric tons of sugarcane crushed, resulting in the production of 59,060.750 metric tons of sugar. This reflects an average recovery rate of 10.041%. In comparison, by March 31, 2025, the company had crushed 569,620.090 metric tons of sugarcane, yielding 54,991.500 metric tons of sugar with an average recovery of 9.653%.
Despite the operational success, the procurement of sugarcane presented notable challenges. Intense competition in the procurement area led to elevated prices, substantially increasing the overall cost of production. The company maintained an adequate supply through consistent engagement with growers and timely support.
The financial results for the period show significant strain due to higher input costs, driven primarily by increased sugarcane prices and rising energy costs. The geopolitical situation, especially the America-Iran conflict, caused volatility in energy markets, leading to increased fuel and power costs. Consequently, these factors exerted considerable pressure on the profit margins.
According to information available from the Pakistan Stock Exchange (PSX), Baba Farid Sugar Mills reported net sales of Rs. 1.03 billion for the period, a stark decrease from Rs. 4.17 billion during the corresponding period of the previous year. The company also recorded a pretax loss of Rs. 168.61 million, in contrast to a pretax profit of Rs. 108.07 million in the same period last year. This denotes a very large or significant move in financial performance.
In response to these challenges, the management is implementing various cost control measures and operational improvements. However, the current economic environment continues to challenge profitability, highlighting the ongoing pressures faced by the company in the current market scenario.