Karachi: Chashma Sugar Mills Limited, a key player in the sugar industry, reported a significant downturn in its financial performance for the year ending December 31, 2024. Despite an increase in net sales, the company experienced a substantial decline in profits, according to its latest financial disclosures.
The company's net sales rose to 32.27 billion rupees in 2024, marking a 23% increase from the 26.32 billion rupees recorded in 2023. However, this increase in sales did not translate into profitability. The gross profit for the year plummeted by 64%, from 6.19 billion rupees in 2023 to 2.22 billion rupees in 2024.
Operating profit also showed a marked decrease, falling 94% to 258.70 million rupees from 4.32 billion rupees in the previous year. This decline in operating profit was a significant contributor to the overall financial performance of the company.
According to information available from the Pakistan Stock Exchange (PSX), Chashma Sugar Mills Limited's profit before taxation suffered a dramatic reversal, dropping from a positive 1.58 billion rupees in 2023 to a loss of 3.81 billion rupees in 2024. Consequently, the company reported a net loss after taxation of 2.64 billion rupees for 2024, in stark contrast to a net profit of 1.70 billion rupees in 2023, reflecting a decrease of 255%.
In terms of shareholder returns, the company did not distribute any dividends in 2024, compared to 143.46 million rupees distributed in 2023. Furthermore, the loss retained for future growth was 2.64 billion rupees, as opposed to a profit retention of 1.56 billion rupees in the previous year.
Earnings per share for 2024 registered a loss of 91.92 rupees, compared to a positive 59.22 rupees per share in 2023, highlighting a significant downturn in shareholder value.
Financial results for the last quarter ending December 31, 2024, also reflected a downturn. Net sales for the quarter saw a 14% decrease to 5.39 billion rupees from 6.27 billion rupees in the same period in 2023. The gross profit for the quarter fell sharply by 96%, resulting in a mere 75.58 million rupees compared to 1.89 billion rupees in the corresponding quarter of the previous year.
Chashma Sugar Mills Limited's operating loss for the quarter was reported at 21.87 million rupees, a stark contrast to an operating profit of 1.37 billion rupees in the fourth quarter of 2023. The profit before taxation for the quarter also turned negative, recording a loss of 1.08 billion rupees, down from a profit of 692.56 million rupees in the prior year period.
The company's net loss after taxation for the quarter was 647.13 million rupees, compared to a net profit of 547.93 million rupees in the fourth quarter of 2023. Consequently, the earnings per share for the quarter showed a loss of 22.55 rupees, compared to earnings of 19.10 rupees per share in the same period the previous year.
These figures indicate a challenging financial year for Chashma Sugar Mills Limited, with significant impacts on profitability despite increased sales.