Karachi: On behalf of the Board of Directors, Sakrand Sugar Mills Limited presented its un-audited financial statements for the quarter ending December 31, 2024. The report highlights both operational and financial outcomes, revealing mixed results amid a challenging economic environment.
The company commenced its crushing season on November 21, 2024, operating for 41 days compared to 56 days in the previous season, according to directives from the Federal Government. During this period, Sakrand Sugar Mills crushed 132,463 metric tons of sugarcane, producing 12,415 metric tons of sugar. This is a slight decrease from the previous year's production of 12,936 metric tons from 136,654 metric tons of crushed cane. The average daily crushing rate increased to 3,230 metric tons from the previous year's 2,440 metric tons, indicating enhanced operational efficiency.
Financially, Sakrand Sugar Mills recorded a net sales figure of 1.39 billion rupees for the quarter, a significant increase from the 1.08 billion rupees reported during the same period last year. The company reported a gross profit of 157.30 million rupees, recovering from a loss of 62.80 million rupees in the previous year. Importantly, the profit before taxation stood at 98.70 million rupees compared to a loss of 125.51 million rupees last year, while the profit after taxation reached 82.98 million rupees, a marked improvement from last year's post-tax loss of 139.00 million rupees. Earnings per share accordingly rose to 1.86 rupees from a loss of 3.12 rupees per share last year.
The improved financial performance is attributed to successful export of the government quota, which provided a revenue surplus. However, the company continues to face pressure from rising cane costs, which have not been matched by local sugar prices. The disparity between the cost of raw materials and sugar prices poses a significant challenge. Additionally, the Finance Act for 2024-25 has imposed a federal excise duty of 15 rupees per kilogram on sales to manufacturers and increased the withholding tax rate for non-filers to 2%, which could negatively impact future profitability.
According to information available from Pakistan Stock Exchange (PSX), Sakrand Sugar Mills' total assets increased to 4.55 billion rupees from 4.22 billion rupees in the previous year. Current assets saw a notable rise, reaching 653.21 million rupees compared to 327.98 million rupees last year. The company's equity and liabilities structure reflects a robust position, with share capital and reserves at 2.23 billion rupees, up from 1.97 billion rupees the previous year.
In terms of cash flow, the company reported a net increase in cash and cash equivalents of 1.46 million rupees for the quarter, ending the period with 57.11 million rupees compared to 239.44 million rupees at the same time last year. The cash flow from operating activities generated 54.42 million rupees, while investing and financing activities resulted in net cash outflows.
Despite the operational and financial challenges, Sakrand Sugar Mills remains optimistic about its future performance, focusing on enhancing operational efficiency and navigating the economic pressures posed by regulatory changes and market dynamics.