Karachi: Jauharabad Sugar Mills Limited (JSML) has reported a notable revenue increase for the half year ended March 31, 2025, despite facing operational challenges in the sugar industry. The unaudited financial statements, reviewed by external auditors, reveal that the company achieved a revenue of Rs. 5,659 million, compared to Rs. 4,127 million in the corresponding period of the previous year.

The sugarcane cultivation area decreased by 3.2% for the 2024-25 season, totaling 1,210 thousand hectares. Despite this reduction, sugarcane production remained stable at 83,500 million metric tons due to an increase in per acre yield. The Government of Punjab did not announce a Minimum Support Price (MSP) for sugarcane this season, allowing market mechanisms to determine the cane price. Farmers received adequate returns for their produce, maintaining a stable price trend.

JSML commenced its crushing operations on November 21, 2024, four days earlier than the previous year, and operated for 110 days, seven days more than the prior season. The company crushed 623,733 metric tons of sugarcane, a slight decrease from the 657,997 metric tons in 2023-24. The company achieved a sugar recovery rate of 10.1%, the highest among regional mills, reflecting operational efficiency and strategic foresight.

Amidst competitive pressures, JSML faced higher-than-anticipated cane procurement costs. However, the company maintained its leadership position in the industry by optimizing milling efficiencies and securing high-quality cane. The company reported sugar production of 63,026 metric tons and molasses production of 23,258 metric tons, with respective recovery percentages of 10.104% and 3.729%.

According to information available from the Pakistan Stock Exchange (PSX), JSML's robust revenue growth was driven by strong domestic sugar sales and efficient execution of its export quota. Despite this growth, the company experienced a slight decrease in gross profit due to higher taxation.

The company has paid 100% of its cane liability within 24 hours of closing the 2024-25 crushing season, as reported to the Cane Commissioner's Office on March 16, 2025. The auditors are satisfied with the financial performance and have authorized the issuance of interim financial statements.

Looking ahead, JSML anticipates improved contributions from the sale of carry-forward stock and remains vigilant in monitoring market developments. The company is committed to sustaining its financial performance through operational efficiency and strategic planning. No material changes affecting the company's financial position have occurred between the end of the financial reporting period and the date of the Director's Report.