Haseeb Waqas Sugar Mills Reports Substantial Losses and Zero Production in Third Quarter

Karachi: Haseeb Waqas Sugar Mills Limited disclosed severe financial losses and zero production for the third quarter ended June 30, 2024, as detailed in the Directors’ review presented today. The company continues to grapple with operational and financial challenges, reflecting a significant downturn in its performance compared to the previous year.

The financial outcomes for the nine months ending June 30, 2024, show a gross loss of 254.10 million Rupees, escalating from a loss of 138.63 million Rupees during the same period in 2023. The net loss before tax widened to 266.50 million Rupees from 289.05 million Rupees the previous year, while the net loss after tax improved slightly to 201.47 million Rupees from 267.86 million Rupees. Earnings per share also showed a marginal recovery from a loss of 8.27 Rupees to 6.22 Rupees.

According to information available from the Pakistan Stock Exchange (PSX), the mill was non-operational during the traditional crushing season, resulting in zero production and sales. This operational halt is attributed to the company’s current financial constraints and inability to commence production activities.

Management is reportedly making efforts to secure funding for the upcoming 2024-25 crushing season. There are ongoing negotiations with financial institutions aimed at rescheduling and restructuring outstanding liabilities, as well as discussions with the Federal Board of Revenue (FBR), which are expected to conclude before the season starts.

Looking forward, the company’s management remains hopeful about resuming full operations in the next crushing season and achieving maximum production levels. The Board of Directors expressed gratitude towards sugarcane growers, customers, shareholders, banks, and government departments for their continued support, which is deemed crucial for overcoming the present challenges.