Karachi: Habib Sugar Mills Limited, a prominent entity in the sugar sector, disclosed its unaudited financial results for the half-year ending March 31, 2026, revealing a notable increase in profitability despite a downturn in net sales. The financial results were approved by the Board of Directors during a meeting held on May 20, 2026.
The company’s net profit surged to 923.17 million rupees for the half-year ended March 31, 2026, compared to 667.14 million rupees in the same period last year. This represents a substantial increase, driven largely by improved financial management and cost controls. The earnings per share also rose from 4.94 rupees to 6.84 rupees, indicating enhanced value for shareholders.
Despite the rise in profitability, Habib Sugar Mills faced a very large or significant move in net sales, which fell from 9.57 billion rupees in the previous year to 7.20 billion rupees in the current period. The decrease in net sales was offset by a reduction in the cost of sales, which dropped from 8.18 billion rupees to 5.65 billion rupees.
According to information available from the Pakistan Stock Exchange (PSX), the company’s operating profit for the half-year was recorded at 1.52 billion rupees, up from 1.29 billion rupees in the previous year. This improvement in operating profit is attributed to effective financial strategies, including a rise in other income which reached 572.51 million rupees, compared to 464.68 million rupees last year.
The company’s balance sheet showed some shifts in asset management. Current assets increased to 17.83 billion rupees from 14.62 billion rupees, while non-current assets declined from 8.98 billion rupees to 7.27 billion rupees. The equity and liabilities section revealed a decrease in reserves from 16.77 billion rupees to 15.70 billion rupees, reflecting strategic financial adjustments.
In the realm of liabilities, the company witnessed an increase in current liabilities, which rose from 5.47 billion rupees to 8.36 billion rupees. This was partly due to a rise in contract liabilities and short-term borrowings, indicating a change in the company’s financial commitments.
The Board of Directors did not recommend any cash dividends, bonus shares, or right shares for the period, maintaining a focus on strengthening the company’s financial position. The comprehensive financial results, along with other related statements, are documented in the company’s half-yearly report, set to be disseminated through PUCARS in due course.
Habib Sugar Mills continues to navigate a challenging market environment, demonstrating resilience and adaptability in its financial operations. The company’s commitment to maintaining profitability while managing sales fluctuations underscores its strategic focus in the sugar industry within the designated market category.