Islamabad: The Premier Sugar Mills & Distillery Co., Limited has reported a financial downturn for the nine-month period ending June 30, 2025. The company revealed a loss after taxation amounting to Rs. 322.87 million, a stark contrast to the profit of Rs. 134.97 million recorded in the same period last year. Despite the significant rise in net sales to Rs. 1.44 billion from Rs. 527 million, the company's profitability continued to be under pressure due to ongoing operational and cost challenges.
A major contributor to the sales increase was the Ethanol Division, which played a pivotal role in offsetting losses from the Sugar Division. The Ethanol Division exceeded expectations with the production of 8,321 metric tons of ethanol. It reported total sales of Rs. 1.27 billion, with Rs. 1.10 billion generated from exports and Rs. 166 million from local sales. This strong performance was attributed to the successful operation of an upgraded ethanol plant and improved access to international markets.
Conversely, the Sugar Division faced significant hurdles. The company is grappling with intense competition from tax-free commercial gur manufacturing, leading to sugarcane prices in the area being 30% higher than in other regions. Additionally, there has been reduced sugarcane availability compared to previous years. As a result, management has decided to close sugar operations temporarily to prepare for the next crushing season.
Looking forward, the company is bracing for economic challenges following the European Commission's suspension of Pakistan's Generalized Scheme of Preferences Plus (GSP+) status for ethanol imports, effective June 20, 2025. This decision, prompted by concerns from six EU member states about Pakistan's ethanol exports disrupting the EU market since 2022, is expected to negatively impact the company's ethanol sales to Europe, potentially pressuring margins and reducing profitability in future periods.
According to information available from the Pakistan Stock Exchange (PSX), The Premier Sugar Mills & Distillery Co., Limited is classified under the designated market category of sugar and distillery production. The accounting policies used for this quarterly financial report remain consistent with those in the preceding annual financial statements.
The Directors have expressed their appreciation for the efforts and dedication of the company's staff across all levels in navigating these challenging times.