Karachi: Sindh Abadgars Sugar Mills Limited has announced a significant turnaround in its financial performance for the nine-month period ending June 30, 2025. The company reported a profit after taxation of Rs. 119 million, marking a substantial recovery from a loss of Rs. 142.79 million recorded in the same period last year.
The directors' report, released on behalf of the Board, highlighted that the company's sales surged to Rs. 4.08 billion from Rs. 2.25 billion in the previous year's corresponding period. The 82% increase in sales is attributed to a 57% rise in sales volume, which climbed from 20,305 metric tons to 31,816 metric tons. Additionally, there was a 16% rise in the average selling price compared to the prior period.
According to information available from the Pakistan Stock Exchange (PSX), the company's financial costs showed a significant move, decreasing to Rs. 215 million from Rs. 468 million in the comparable period last year. This reduction in financial costs played a crucial role in the company's improved profitability. Consequently, the earnings per share rose to Rs. 11.43 from a loss of Rs. 13.70 per share in the corresponding period last year.
The company also addressed future challenges, noting that the federal cabinet has approved the import of 500,000 metric tons of sugar to stabilize domestic prices amid concerns over rising costs in the open market. The government has set the Ex-Mill price at Rs. 165 per kilogram, overlooking the free market trade mechanism. Despite assurances from the Pakistan Sugar Mills Association (PSMA) and the Chairman of the Standing Committee - Finance regarding sufficient sugar stock until November 2025, the government remains firm on its decision to import sugar, which the company believes is unjustifiable.
The company expressed concerns over the potential negative impact on the country's foreign exchange reserves due to the outflow of foreign exchange for sugar imports. It urged the government to reconsider its decision to protect the sugar industry from further losses caused by high sugarcane costs and interest rates. The board of directors acknowledged the support from shareholders, growers, banks, and customers, and commended the staff and workers for their dedication in strengthening the company.