Premier Sugar Mills Reports Mixed Financial Performance for First Nine Months of 2024

Karachi: The Premier Sugar Mills and Distillery Co. Ltd. has disclosed its financial outcomes for the quarter and the first nine months ended June 30, 2024, with a board meeting held on July 26, 2024, to finalize the results. The report reveals a challenging fiscal period with significant fluctuations in profitability and operational performance.

For the quarter ending June 2024, the company reported net sales of Rs. 93.739 million, a decline from Rs. 527.241 million in the same quarter of 2023. This substantial decrease reflects a broader downturn in the local sales, which dropped to Rs. 110.612 million from Rs. 622.144 million the previous year. The cost of sales also saw a reduction but remained high, resulting in a gross loss of Rs. 121.523 million for the quarter, compared to a gross profit in the corresponding period of 2023.

According to information available from the Pakistan Stock Exchange (PSX), the nine-month figures show a more encouraging scenario with net sales reaching Rs. 1.337 billion, although down from last year’s Rs. 2.291 billion. The cost of sales totaled Rs. 1.230 billion, leading to a gross profit of Rs. 108.037 million, a significant turnaround from the previous year’s loss.

Other income for the nine-month period was notably higher, reaching Rs. 588.358 million, which contributed to a profit from operations of Rs. 436.133 million. However, the finance cost and taxation affected the bottom line, bringing the profit after taxation to Rs. 547.357 million, showing a stark contrast to a loss in the previous quarter.

Earnings per share for the nine-month period stood at Rs. 145.96, reflecting an improvement from Rs. 35.99 in 2023. The detailed profit and loss account will be made available through PUCARS in compliance with regulatory requirements.

The financial results highlight the volatile market conditions affecting the sugar industry, with significant impacts on production costs and sales revenues. Premier Sugar Mills is navigating these challenges with strategic adjustments in operations and financial management.