JDW Sugar Mills Limited Announces Substantial Growth in First Half of 2024

Daharki, JDW Sugar Mills Limited has reported a significant increase in net profit after tax for the first half of the fiscal year ended March 31, 2024, reaching Rs. 7,887 million, up from Rs. 1,155 million in the same period last year. According to information available from the Pakistan Stock Exchange (PSX), earnings per share also surged from Rs. 19.65 to Rs. 136.51. The company’s gross profit ratio improved from 14% to 24%, reflecting strong performance across all segments including sugar, corporate sugarcane farms, and the power division. Key factors contributing to this record profitability include a 64% rise in gross turnover, which escalated from Rs. 40 billion to Rs. 66 billion, primarily due to the sale of carry-over sugar stocks at favorable prices. Enhanced sugarcane support prices and a record yield per acre also boosted profitability at the corporate farms. Other income rose significantly to Rs. 2,486 million, largely due to net fair value gains of sugarcane crops at harvest. Despite higher work
ing capital requirements and a raised discount rate by the State Bank of Pakistan from 20% to 22%, financial charges increased only marginally due to the early repayment of long-term loans in October 2023.

The independent auditors have reviewed the condensed interim unconsolidated financial statements of JDW Sugar Mills Limited as of March 31, 2024. The financial statements adhere to the approved accounting standards applicable in Pakistan for interim financial reporting. The review covered the company’s financial position and various financial statements, including the statement of profit or loss and the statement of comprehensive income for the half-year then ended. The auditors conducted their review in accordance with the International Standard on Review Engagements 2410 and confirmed that nothing has come to their attention that would suggest the financial statements are not prepared in all material respects in accordance with the accounting standards.