Lahore: Noon Sugar Mills Limited has disclosed its condensed interim financial statements for the nine-month period ending on June 30, 2024, revealing substantial gains in profitability despite prevailing market difficulties. The company announced a net sales increase to Rs. 7,857 million from Rs. 6,273 million in the previous year's corresponding period, marking a notable enhancement in financial performance.
During the period under review, the gross profit rose to Rs. 1,643 million from Rs. 1,285 million. The earnings before tax increased to Rs. 428 million, up from Rs. 267 million, while earnings after tax improved from Rs. 203 million to Rs. 293 million. According to information available from the Pakistan Stock Exchange (PSX), basic earnings per share also climbed from Rs. 12.27 to Rs. 17.75.
The operational results of the Sugar Division reflected an improved average sucrose recovery of 10.30%, despite a decrease in the number of operating days from 101 to 98 and a reduction in the quantity of sugarcane crushed. Molasses production also decreased in line with the reduction in cane crushed.
The Distillery Division faced challenges with a decrease in the amount of molasses processed, down to 54,651 M.Tons from 90,204 M.Tons, and a subsequent decline in ethanol production. The sector was impacted by the global economic downturn and increased freight costs related to the Red Sea issue, which affected ethanol prices.
Looking ahead, Noon Sugar Mills noted a countrywide surplus of one million metric tons of sugar, which has pressured local market prices and profitability. The company called for government action to permit further sugar exports to alleviate market glut and stabilize prices. Additionally, the Distillery Division anticipates continued pressure on ethanol prices but is developing strategies to navigate these challenges and maximize shareholder value.
The Board expressed gratitude for the steadfast support of stakeholders and the commitment of its employees, whose efforts have been crucial in navigating the fiscal period.