Noon Sugar Mills Reports Increased Profits Amid Operational Challenges

Karachi: Noon Sugar Mills Limited has disclosed its financial and operational performance for the nine months ending June 30, 2024, revealing an increase in net profits despite significant industry challenges.

According to the financial statements presented by the company’s directors, Noon Sugar Mills experienced a rise in net sales from Rs. 6,273 million in 2023 to Rs. 7,857 million in 2024. Gross profit increased from Rs. 1,285 million to Rs. 1,643 million, and earnings after tax improved from Rs. 203 million to Rs. 293 million. Basic earnings per share also saw an increase from Rs. 12.27 to Rs. 17.75.

According to information available from the Pakistan Stock Exchange (PSX), despite these gains, the company faced higher financial costs due to increased carrying stocks in anticipation of better sugar and ethanol markets. Additionally, the burden of outstanding liabilities also affected the company’s returns, particularly in the third quarter of 2024.

Operational data from the Sugar Division shows a decrease in the amount of cane crushed and sugar produced compared to the previous year, with 712,164 metric tons of cane producing 73,597 metric tons of sugar in 2024. However, the average sucrose recovery rate improved, reaching a record 10.30%. The company attributes this success to effective support and innovations provided to sugarcane growers.

The Distillery Division processed 54,651 metric tons of molasses to produce 10,076 metric tons of ethanol. Despite a decrease in operational days and molasses processed, the management has secured adequate supplies of molasses at competitive prices.

Looking ahead, the company highlighted the substantial surplus of sugar in the local market, which has pressured prices and profitability. The government has permitted the export of 150,000 metric tons of sugar, with potential for more, to help stabilize market prices. However, Noon Sugar Mills stresses the need for further government intervention to permit additional exports, which would help mitigate losses and support the industry.