Chashma Sugar Mills Faces Steep Losses in Financial Performance for 2024

Karachi: Chashma Sugar Mills Limited has reported significant financial downturns for both the quarterly and nine-month periods ending June 30, 2024. The Board of Directors, during their meeting on July 26, 2024, confirmed these results, marking a stark contrast to the company’s performance in the previous year.

For the quarter ending June 2024, Chashma Sugar Mills recorded a net loss of Rs. 1.53 billion, a deep decline from the Rs. 328.85 million loss reported for the same period in 2023. Net sales for the quarter were Rs. 10.21 billion, nearly double the Rs. 5.50 billion from the previous year, yet costs of sales also surged, leaving a minimal gross profit of Rs. 147.45 million.

According to information available from the Pakistan Stock Exchange (PSX), the nine-month performance similarly showed escalated sales at Rs. 22.15 billion compared to Rs. 16.84 billion in the previous year, but this increase was offset by higher costs of sales, which totaled Rs. 19.14 billion. The gross profit for the nine-month period stood at Rs. 3.01 billion, down from Rs. 3.64 billion in 2023.

The financial strain was exacerbated by significant finance costs, which soared to Rs. 3.25 billion from Rs. 1.92 billion, resulting in a loss before income tax of Rs. 1.69 billion for the nine-month period, a sharp reversal from the profit of Rs. 342.79 million reported the previous year.

Earnings per share also reflected the negative trend, with a substantial loss of Rs. 51.76 per share for the nine months, compared to a gain of Rs. 8.96 per share in the prior year.

Chashma Sugar Mills is grappling with increased operational costs and financial challenges, impacting its profitability and overall financial health. The detailed quarterly report will be made available electronically through PUCARS in compliance with regulatory requirements.