Karachi: Sanghar Sugar Mills Limited has reported a significant turnaround in its financial performance for the nine-month period ending June 30, 2025. The company recorded a profit of 71.48 million rupees, in stark contrast to a loss of 161.02 million rupees for the same period last year, marking a substantial improvement in its bottom line.

According to the financial statements released, the profit before levies and taxation stood at 142.13 million rupees, a remarkable shift from the previous year's loss of 137.53 million rupees. The company attributed the positive results to increased local sugar sales, which rose by 14.81%, coupled with export sales that enhanced cash flows and provided savings in sales tax and federal excise duty.

Despite these financial gains, the company's operational performance showed a decline. The amount of sugarcane crushed fell to 464,266.43 metric tons from the previous period's 515,994.30 metric tons, resulting in a reduction in sugar production to 46,023.00 metric tons from 52,293.50 metric tons. The drop in production was attributed to low crop yields and poor quality of cane, which also led to a lower recovery rate.

According to information available from the Pakistan Stock Exchange (PSX), the company's earnings per share improved to 5.98 rupees from a loss per share of 13.48 rupees in the previous period. The company's gross profit increased by 108.71% compared to last year, though the cost of production also rose due to reduced output.

The financial results were further impacted by regulatory changes. The Federal Board of Revenue issued a new mechanism for charging sales tax on sugar, negatively affecting the company's profitability and cash flows. Additionally, the deregulation of the sugar industry left sugarcane prices to market forces, leading the company to pay competitive prices to growers.

Looking ahead, Sanghar Sugar Mills anticipates challenges due to increased production costs and regulatory pricing controls. The company warns that selling sugar at prices determined by regulatory authorities could impact future profitability.

The Board of Directors expressed appreciation for the dedication of the company's staff and extended gratitude to government bodies, financial institutions, suppliers, and shareholders for their ongoing support.