Jauharabad Sugar Mills Reports Increased Sugar Production and Profits Amidst Challenging Market Conditions

Karachi, Jauharabad Sugar Mills Limited (JSML) has announced an increase in sugar production and significant profit growth for the half-year ended March 31, 2024, despite facing a challenging market environment. According to information available from the Pakistan Stock Exchange (PSX), the company experienced a small increase in sugarcane crushing and maintained production levels similar to the previous year.

The company started the 2023/24 crushing season on November 25, 2023, operating for 103 days and closing on March 7, 2024, which matched the duration of the previous season. JSML managed to crush 657,997 metric tons of sugarcane during this period, marking a slight increase from last year. The sugar produced totaled 64,874 metric tons, with a sugar recovery rate of 9.85%.

Financially, JSML reported a revenue of Rs. 4,127 million, up from Rs. 3,904 million in the previous corresponding period. This increase in revenue led to a 50.47% rise in gross profit and a 289% surge in net profit. Earnings per share also increased dramatically, from Rs. 1.34 to Rs. 5.23.

The operational performance was bolstered by effective maintenance and better management of stoppage hours, which allowed the company to increase crushing capacity within the same operational period as the previous year. JSML has also maintained its commitment to timely payments, settling 100% of its cane liabilities within 24 hours of the season’s close.

The auditors have expressed satisfaction with the financial performance and compliance with applicable reporting standards. The audit report highlighted that the financial statements were prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

JSML is headquartered in Lahore, with its production facilities in Jauharabad, District Khushab. The company remains focused on navigating the current market dynamics, with an optimistic outlook for the remaining fiscal year.