Karachi: The Board of Directors of Mirpurkhas Sugar Mills Limited disclosed the unaudited financial results for the third quarter ending on June 30, 2026. The report reveals substantial financial challenges within the company, exacerbated by volatile energy prices, supply chain disruptions, and regional uncertainties, notably the ongoing Middle East conflict.

For the financial year 2026, Pakistan's GDP grew by 3.70 percent, an increase from 3.18 percent in the prior year. The agriculture, industry, and services sectors reported growth rates of 2.89 percent, 3.51 percent, and 4.09 percent respectively, despite global economic pressures. According to information available from the Pakistan Stock Exchange (PSX), the large-scale manufacturing sector experienced a rebound with a 6.4 percent increase from July to April FY2026, compared to a 1.5 percent contraction a year earlier. However, the external account concluded with a deficit of US$ 139 million, reflecting ongoing economic challenges.

Mirpurkhas Sugar Mills Limited reported a decline in net sales to Rs. 8,775.68 million from Rs. 9,579.28 million in the same period last year. The cost of sales decreased, resulting in a gross profit of Rs. 1,085.63 million, down from Rs. 1,374.76 million. Other income also saw a decrease, while the share of profit in associate companies rose to Rs. 223.59 million.

The sugar division, a significant segment of the company's operations, faced a 3.08 percent reduction in sales volumes, dropping from 45,106 metric tons to 43,715 metric tons. This was largely due to subdued domestic demand and a nationwide surplus of approximately 1.3 million metric tons. The company noted a 15 percent decrease in selling prices, whereas sugarcane prices increased by over 6 percent. Consequently, the gross profit for the sugar division fell to Rs. 793.8 million from Rs. 1,184.5 million, reflecting a very large or significant move in financial performance.

The paper and board division reported a decline in production and sales volumes, although the average selling price rose marginally by 2.1 percent, classified as a minor move. Despite facing elevated costs and increased competition, the division's gross profit improved to Rs. 291.8 million, up from Rs. 190.2 million. However, high debt levels and extended receivables continue to strain liquidity and working capital.

The company's financial position reflects total assets of Rs. 16.05 billion, with current liabilities increasing to Rs. 8.85 billion compared to Rs. 6.38 billion in the previous period. The equity decreased to Rs. 2.49 billion from Rs. 2.80 billion, underscoring the impact of financial pressures and losses.

Mirpurkhas Sugar Mills Limited's reported net loss for the period amounted to Rs. 188.36 million, a substantial increase from a Rs. 28.57 million loss in the previous year. The loss per share was recorded at Rs. 2.83, compared to earnings of Rs. 1.08 per share last year.