Al-Noor Sugar Mills Reports Significant Growth in Mid-Year Financials

Karachi: Al-Noor Sugar Mills Limited announced substantial progress in its mid-year financial and production results for the period ending June 30, 2024. The un-audited financial statements reveal significant improvements in sugar production and overall profitability compared to the previous year.

The company reported a remarkable increase in sugarcane processing, with 1,109,983 metric tons crushed this period compared to 769,713 metric tons the previous year. Sugar output rose by nearly 50 percent to 119,117 metric tons, primarily due to enhanced raw material availability. Molasses production also saw a significant increase, amounting to 49,750 metric tons.

According to information available from the Pakistan Stock Exchange (PSX), Al-Noor’s financial performance mirrored its production success. Sales revenue escalated to Rs. 14.33 billion, a substantial rise from Rs. 8.40 billion in the previous year. The gross profit followed suit, reaching Rs. 2.53 billion, up from Rs. 1.15 billion. This boost in profitability is reflected in the earnings per share, which improved dramatically to Rs. 4.71 from a loss of Rs. 12.26 per share last year.

The increase in raw material costs, influenced by a higher government-set minimum support price for sugarcane, did impact production expenses but was offset by higher sales revenue. Despite higher financial costs and operating expenses, the company maintained profitability, thanks to efficient operations and cost management.

The MDF Board division also reported growth, with production reaching 53,087 cubic meters, up by 3.36 percent from last year’s figures. This rise is attributed to better availability of raw materials.

Looking forward, the government’s decision to increase the support price for sugarcane has positively affected growers and is expected to boost future sugarcane cultivation. Al-Noor Sugar Mills stresses the importance of favorable export policies to sustain the sugar industry and benefit the national economy through increased foreign exchange earnings.

The Board of Directors remains unchanged and committed to further improving performance and ensuring sustainable growth in both domestic and international markets. The board extends its gratitude to stakeholders and seeks divine assistance for continued success.