Karachi: Noon Sugar Mills Limited, a publicly traded company on the Pakistan Stock Exchange, has reported a significant decline in both sugar and alcohol production for the fiscal year ending September 30, 2024. The company, incorporated in 1964 and primarily engaged in the manufacturing and sale of white sugar and spirit, operates its production plant in Bhalwal.

For the year 2024, Noon Sugar Mills crushed 712,164 metric tons of cane, a decrease from 807,367 metric tons in 2023. This resulted in a reduction of sugar production to 73,597 metric tons from 75,717 metric tons the previous year. The average sucrose recovery also showed a slight improvement to 10.30% from 9.37% in 2023. The company's operating period for sugar production has also been cut short to 94 days compared to 101 days in the previous year.

The alcohol production segment also saw a downturn, with 69,562 metric tons of molasses processed in 2024, down from 91,704 metric tons in 2023. Consequently, alcohol production fell to 13,429 metric tons from 18,334 metric tons. The average alcohol yield per ton was recorded at 246 liters, slightly down from 250 liters in the previous year, despite a longer operating period of 192 days compared to 184 days in 2023.

Financially, the company reported sales of Rs. 11.33 billion for the year ended September 30, 2024, up from Rs. 9.28 billion in the previous year. However, the cost of sales increased to Rs. 10.20 billion from Rs. 7.38 billion. This led to a gross profit of Rs. 1.13 billion, down from Rs. 1.90 billion in 2023. The gross profit margin declined to 9.97% from 20.44%.

According to information available from the Pakistan Stock Exchange (PSX), Noon Sugar Mills posted a pre-tax loss of Rs. 479.91 million compared to a pre-tax profit of Rs. 526.57 million in 2023. The total comprehensive income also swung to a loss of Rs. 618.60 million from a profit of Rs. 418.78 million the previous year. Consequently, the company reported a negative net profit margin of 5.46%, a reversal from a positive 4.51% in 2023.

Shareholders' equity diminished to Rs. 1.40 billion from Rs. 2.09 billion in the previous year, significantly impacting the break-up value per share, which declined to Rs. 84.82 from Rs. 126.27. Earnings per share also turned negative at Rs. (37.50), a steep drop from Rs. 25.39 in 2023. Return on equity was recorded at a negative 44.22%, contrasting sharply with the positive 20.08% return in the previous year.

Noon Sugar Mills Limited's latest financial and operational results highlight the challenges faced by the company amid a declining sugar and alcohol production environment, despite an increase in sales revenue. The company continues to navigate these challenges with strategies aimed at stabilizing its operations and financial health.