Karachi: Dewan Sugar Mills Limited has reported substantial financial losses for the fiscal year ending September 30, 2024, as disclosed in their annual audited financial statements presented by the Board of Directors. The figures highlight a challenging year marked by operational difficulties and a competitive market environment.
The company's net sales plummeted to Rs. 2.48 billion from Rs. 6.21 billion in the previous year, representing a significant decline in revenue. The gross loss for the year stood at Rs. 453.61 million, a sharp increase from the previous year's loss of Rs. 84.78 million. The net loss after tax was reported at Rs. 608.93 million, slightly improving from the net loss of Rs. 863.66 million recorded in 2023.
The sugar plant operations were notably affected, as the facility could not be operated during the 2023-24 period due to technical issues and operational challenges. The management has since undertaken necessary maintenance and overhauling, with plans to resume operations in the upcoming season.
In the distillery segment, Dewan Sugar Mills Limited produced 8,902 metric tons of industrial alcohol, a significant decrease from 19,511 metric tons in the previous year. The decline was attributed to global pricing pressures, economic recession, government policies, and the competitive pricing of gasoline, which reduced ethanol's appeal as an alternative fuel. The distillery unit reported an operating loss of Rs. 184.61 million, compared to Rs. 33.45 million last year, exacerbated by a 45% reduction in production and increased feedstock costs. However, a positive exchange gain of Rs. 68.67 million was recorded due to a stable rupee value, contrasting with a loss of Rs. 460.54 million in the previous year.
The chip board plant produced 33,630 sheets during the year, a significant decrease from 67,970 sheets the previous year. Despite the unfavorable economic conditions, the management remains focused on producing high-quality sheets to compete in the market. The company is optimistic about future prospects with anticipated economic and construction activity increases.
The Board of Directors comprises seven individuals, with diverse expertise, including one female director and one independent director. All members have actively contributed to steering the company through this difficult period.
According to information available from the Pakistan Stock Exchange (PSX), the financial indicators present a challenging picture for Dewan Sugar Mills Limited. The gross loss percentage to sales widened to 18.27% from 1.37% in the previous year, while the net loss percentage to sales increased to 24.52% from 13.91%. The loss per share improved slightly to Rs. 6.65 from Rs. 9.44 in the previous year.
The company's financial statement also highlighted a decrease in current assets to Rs. 1.58 billion from Rs. 2.57 billion, while shareholders' equity showed a negative balance of Rs. 661.44 million. Long-term debts and deferred liabilities increased to Rs. 2.15 billion from Rs. 1.72 billion, with current liabilities standing at Rs. 7.53 billion.
Despite these challenges, Dewan Sugar Mills Limited remains committed to its mission of conducting business responsibly and benefiting its stakeholders, including customers, employees, and shareholders. The company is dedicated to innovation and integrity, with a work environment that motivates and rewards achievements at all levels.