Dewan Sugar Mills Limited Faces Substantial Losses in Third Quarter of 2024

Karachi: Dewan Sugar Mills Limited has reported significant financial setbacks for the third quarter ending June 30, 2024, as confirmed during the Board of Directors meeting held on July 26, 2024, in Karachi, Pakistan.

The company has declared no cash dividends, bonus shares, or rights shares, with no new corporate actions announced, maintaining a status of no change in shareholder benefits. Additionally, the financial performance showed a continued strain, with a drastic decrease in sales from 5.36 billion rupees in the nine months of 2023 to 2.07 billion rupees in the same period of 2024. The quarterly figures also reflect a downturn with sales dropping from 470.55 million rupees in the third quarter of 2023 to 777.99 million rupees in 2024.

According to information available from the Pakistan Stock Exchange (PSX), the gross loss for Dewan Sugar Mills widened significantly, with the nine-month period ending in a loss of 299.93 million rupees compared to a loss of 167.00 million rupees the previous year. The third quarter alone saw a gross loss of 242.47 million rupees, a sharp increase from a 32.39 million rupee loss in 2023.

The operational difficulties were further compounded by high costs of sales, which outstripped revenues, leading to an operational loss of 405.00 million rupees over nine months, more severe than the 771.61 million rupees loss reported in 2023. The quarterly operational loss also expanded from 180.20 million rupees to 249.02 million rupees.

Finance costs and administrative expenses added to the company’s challenges, with finance costs for the quarter rising to 25.24 million rupees from 11.82 million rupees in the previous year. Loss before tax for the nine-month period was 459.17 million rupees, increasing from a loss of 806.74 million rupees in 2023.

After accounting for taxation, the loss after tax stood at 417.21 million rupees for the nine months, worsening from a loss of 783.09 million rupees the previous year. The quarterly report further details a loss per share of 2.91 rupees, an increase from a loss of 1.86 rupees per share in the third quarter of 2023.

The un-audited quarterly report of Dewan Sugar Mills will be transmitted through PUCARS, as stated, within the specified time frame.