Karachi: Habib Sugar Mills Limited has released its unaudited condensed interim financial statements for the half year ending on March 31, 2025, revealing a decline in profit after taxation compared to the previous year. The company reported a pre-tax profit of Rs. 1,277 million, down from Rs. 1,583 million in 2024. After accounting for tax expenses, the profit after taxation stood at Rs. 667 million, a significant decrease from Rs. 1,253 million recorded in the same period last year.

The financial results indicate a notable increase in taxation, which rose to Rs. 610 million from Rs. 330 million in 2024. This rise is primarily attributed to the imposition of tax on realized gains from the sale of investments, tax on export subsidies, and a change in the tax basis for income from the company’s export-oriented divisions. These divisions, previously taxed at 1% of receipts until June 30, 2024, are now subject to a corporate tax rate of 39%.

According to information available from the Pakistan Stock Exchange (PSX), the company realized a gain of Rs. 602 million from the sale of investments, a substantial increase from Rs. 58 million in 2024. This rise in realized gains is due to the company's strategic shift of investments from fixed deposits and saving accounts to mutual fund units for improved returns. Additionally, the unrealized gain on investments in company shares increased to Rs. 3,718 million from Rs. 2,584 million as of September 30, 2024, reflecting the enhanced performance of the PSX.

The sugar division of Habib Sugar Mills reported an operating profit of Rs. 780 million, up from Rs. 453 million in 2024. This improvement is largely due to profits from sugar exports under the government-allocated export quota and increased sales volume. The company processed 839,005 M. Tons of sugarcane during the 2024-25 crushing season, producing 83,198 M. Tons of sugar, compared to 1,065,705 M. Tons of sugarcane and 113,286 M. Tons of sugar in the previous season.

In contrast, the distillery division experienced a decline in operating profit, earning Rs. 168 million compared to Rs. 442 million in 2024. This decrease is attributed to lower international selling prices and reduced sales volume. The division produced 12,328 M. Tons of ethanol, down from 13,150 M. Tons in the previous year. However, production of liquified carbon dioxide increased to 4,313 M. Tons from 3,994 M. Tons in 2024.

The textile division also saw a decrease in profit, earning Rs. 4 million compared to Rs. 16 million in 2024. This decline is mainly due to reduced selling prices and lower sales volumes.

The board of directors expressed gratitude to all staff members, shareholders, financial institutions, and stakeholders for their continued support and cooperation. Habib Sugar Mills Limited operates in the designated market category of sugar and allied industries, focusing on sugar production, ethanol manufacturing, and textile operations.