Baba Farid Sugar Mills Reports Increased Sugar Production Amid Economic Challenges

Lahore: Baba Farid Sugar Mills Limited announced its financial performance for the nine months ending on June 30, 2024, with a significant increase in sugar production despite facing severe economic headwinds. According to information available from the Pakistan Stock Exchange (PSX), the company faced persistent inflation, high interest rates, and challenging macroeconomic conditions during the period under review.

The company successfully crushed 524.17 million kilograms of sugarcane, producing 52.80 million kilograms of white refined sugar, marking a notable improvement in production output compared to the previous year. The average recovery rate of sugar from sugarcane also increased to 10.068% from 9.956% last year. Despite the enhanced production, Baba Farid Sugar Mills recorded net sales of Rs. 3.26 billion, up from Rs. 2.95 billion in the corresponding period last year.

However, the financial health of the company was impacted by a substantial pretax loss of Rs. 400.86 million, a significant rise from a loss of Rs. 34.78 million in the previous year. The losses were primarily driven by high cane procurement costs and subdued sugar prices, compounded by increased interest expenses.

Amidst these challenges, the company’s directors expressed a commitment to stringent corporate governance and highlighted efforts to enhance efficiency and reduce operational costs. The Board of Directors, including two female and five male members, remains focused on adhering to best corporate practices and the requirements of the Listed Companies (Code of Corporate Governance) Regulations, 2017.

The directors also acknowledged the hard work and dedication of the company’s employees and expressed gratitude to suppliers, customers, and bankers for their continued support and confidence in these turbulent times.