Sanghar Sugar Mills Reports Mixed Financial Outcomes for Nine-Month Period

Karachi: Sanghar Sugar Mills Limited released its condensed interim financial statements for the nine months ending June 30, 2024, during a board meeting on July 29, 2024, in Karachi. The financial snapshot showed mixed results, with the company not announcing any dividends or share bonuses for the period.

According to information available from the Pakistan Stock Exchange (PSX), Sanghar Sugar Mills experienced a fluctuating financial performance over the nine months. The company’s sales rose to Rs. 3.73 billion from Rs. 2.51 billion in the corresponding period the previous year. However, the costs of sales also increased, reaching Rs. 3.51 billion up from Rs. 2.29 billion, which compressed the gross profit margin slightly.

The company reported a gross profit of Rs. 216.40 million, nearly stable compared to Rs. 216.84 million in the prior year. Administrative expenses and other operating costs amounted to Rs. 117.27 million and Rs. 44.52 million, respectively, reflecting a rise from the previous figures of Rs. 94.49 million and Rs. 61.92 million.

Finance costs escalated to Rs. 191.94 million, significantly higher than the previous year’s Rs. 131.48 million, impacting the bottom line. As a result, Sanghar Sugar reported a loss before taxation of Rs. 137.53 million, compared to a loss of Rs. 81.27 million in the prior period. After accounting for taxation, the net loss for the period stood at Rs. 161.02 million, deepening from a loss of Rs. 104.99 million year-over-year.

Earnings per share also reflected the downturn, with a loss of Rs. 13.48 per share compared to a loss of Rs. 8.79 per share in the previous period. This period’s financial outcomes underline the ongoing challenges faced by the company amid rising costs and fluctuating market conditions.