Habib Sugar Mills Reports Significant Profit Growth and Operational Updates

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Karachi: On behalf of the Board of Directors, we are pleased to present the unaudited condensed interim financial statements for Habib Sugar Mills Limited for the three quarters ended June 30, 2024. The company reported a pre-tax profit of Rs. 2,397 million, a substantial increase from Rs. 1,799 million in the same period the previous year.

The profit after taxation for the period was Rs. 1,857 million, up from Rs. 1,369 million in 2023, reflecting a growth of Rs. 488 million. This improvement was bolstered by a realized gain on the sale of investments, which swung from a loss of Rs. 228 million last year to a gain of Rs. 58 million. The company’s earnings per share also increased, from Rs. 9.13 to Rs. 12.38 for basic and from Rs. 9.33 to Rs. 12.66 for diluted shares.

According to information available from the Pakistan Stock Exchange (PSX), the company’s sugar division reported a robust season with sugarcane crushed totaling 1,065,705 metric tons and a sugar production of 113,286 metric tons. This represents an increase from the previous year’s figures due to a longer crushing season and slightly lower average sucrose recovery rates. The operating profit for the sugar division increased to Rs. 734 million, up from Rs. 418 million.

The ethanol production from the distillery division saw a decrease, leading to a reduced operating profit of Rs. 749 million compared to Rs. 1,398 million in the previous year, due to lower selling prices and higher costs. However, the liquidified carbon dioxide unit maintained steady production.

In the textile division, operating profit decreased to Rs. 13 million from Rs. 27 million due to higher manufacturing costs. The trading division, however, earned Rs. 82 million primarily through the trading of sugar and molasses, down from Rs. 144 million in the previous year.

A significant corporate activity during the period was the buy-back of 15 million ordinary shares of the company, which were subsequently cancelled, resulting in a reduction of the paid-up capital.

A major legislative change impacting the company is the amendment in the taxation of income from exports, increasing the tax rate from 1% to 39%, which will be applicable from July 1, 2024, for the last quarter of the financial year.

The directors extend their gratitude to all stakeholders for their continued support and cooperation throughout the period.