Al-Abbas Sugar Mills Reports Decline in Half-Yearly Profits Amid Rising Costs and Tax Expenses

Karachi, Al-Abbas Sugar Mills Limited has reported a decrease in its profit after taxation for the half-year ending March 31, 2024. According to the unaudited financial statements released, the company’s profit before taxation stood at Rs. 1,750,144,000 compared to Rs. 1,961,281,000 for the same period last year. The profit after taxation was Rs. 1,489,980,000 down from Rs. 1,892,996,000, marking a significant decrease in profitability.

The earnings per share also fell to Rs. 85.82 from Rs. 109.03 in the previous year. This financial period saw an increase in turnover which surged by Rs. 3.020 billion to Rs. 9.452 billion. The gross profit also increased by Rs. 385 million. However, distribution costs rose notably due to a shift in sales mix and higher finance and taxation expenses. According to information available from the Pakistan Stock Exchange (PSX), these factors contributed to the overall decline in net profitability by Rs. 403.016 million.

In their meeting on May 21, 2024, the company’s Board of Directors declared an interim cash dividend of Rs. 15 per share, equating to 150% for the half-year ended March 31, 2024. These interim financial statements do not reflect the final cash dividend effect. The company’s operational segments, especially the sugar division, faced significant maintenance, impacting overall performance. The management anticipates challenges due to increasing costs of sugarcane and inflation but remains committed to enhancing productivity across all divisions to improve future profitability.