Shahmurad Sugar Mills Reports Mixed Financial Results for First Nine Months of 2024

Karachi: Shahmurad Sugar Mills Limited announced its financial results for the nine-month period ended June 30, 2024, revealing mixed performance metrics compared to the previous year. According to the interim financial statement released on July 24, the company recorded a significant shift in profitability and revenue.

The period ended with sales totaling Rs. 18.74 billion, an increase from Rs. 14.47 billion recorded during the same period in 2023. Despite higher sales, the cost of sales also rose sharply to Rs. 16.76 billion from Rs. 10.94 billion, impacting the gross profit, which saw a decrease to Rs. 1.98 billion from Rs. 3.53 billion last year.

Profit from trading activities marginally increased to Rs. 2.08 million from Rs. 1.43 million. However, distribution costs and administrative expenses presented a mixed picture. Distribution costs decreased to Rs. 81.51 million from Rs. 132.68 million, whereas administrative expenses rose to Rs. 335.05 million from Rs. 269.35 million. The company also reported a reduction in other expenses, down to Rs. 56.24 million from Rs. 160.72 million, and an increase in other income, amounting to Rs. 431.42 million compared to Rs. 423.26 million in the previous year.

Finance costs significantly impacted the bottom line, increasing to Rs. 1.37 billion from Rs. 769.51 million. The profit before taxation stood at Rs. 571.06 million, a sharp decline from Rs. 2.62 billion reported in 2023. After accounting for taxation, the profit for the period was reported at Rs. 284.20 million, down from Rs. 2.42 billion.

According to information available from the Pakistan Stock Exchange (PSX), the earnings per share also reflected a downturn, recorded at Rs. 13.46, compared to Rs. 114.55 in the previous year.

The company’s board of directors, in their meeting, decided against any cash dividends, bonus issue, or rights shares, citing the current financial results. All other corporate actions were also reported as nil.

The quarterly report for the period will be separately transmitted through PUCARS, ensuring stakeholders are kept informed of the company’s financial trajectory within the designated time frame.