Ansari Sugar Mills Reports Significant Financial Turnaround Amid Challenges

Karachi, Ansari Sugar Mills Ltd has released its financial results for the half year ended March 31, 2022, showcasing a significant improvement in its financial performance. According to information available from the Pakistan Stock Exchange (PSX), the company reported a gross profit of PKR 262,098,667, a substantial increase from the PKR 130,870,720 recorded in the same period last year. Despite this positive outcome, the company faced a pre-tax loss of PKR 21,331,179, an improvement from the previous year’s loss of PKR 104,725,476.

The mill, which started the crushing season on December 21, 2021, processed 137,912 metric tons of sugarcane, up from 61,472 metric tons in the previous season, and produced 13,392.5 metric tons of sugar. The improved production has been attributed to better sugar recovery rates and higher yields from the crushed sugarcane. Additionally, the company produced 6,984 metric tons of molasses during this period.

The company also faced significant challenges due to an investigation by the Federal Investigation Agency (FIA) and subsequent actions by the National Accountability Bureau (NAB), which led to the freezing of the company’s bank accounts. This severely affected Ansari Sugar Mills’ ability to access funds and meet its financial obligations, including payments to banks, salaries, and vendors. Despite these difficulties, no charges have been established against the company to date, and following the amendment of the NAB Ordinance, the company’s bank accounts have been unfrozen, allowing operations to continue.

Looking ahead, Ansari Sugar Mills is focused on improving its energy efficiency and planning significant upgrades and replacements to enhance revenue streams through the sale of by-products like bagasse and molasses. The company also plans to strengthen its engagement with local farmers to ensure a steady supply of sugarcane and to support sustainable agricultural practices.

Ansari Sugar Mills expressed gratitude towards its employees, clients, business partners, and shareholders for their continued support during these challenging times, and is optimistic about the future prospects of the sugar industry in Pakistan.