The premier Sugar Mills Limited (PMRS) reported loss per share of PKR 157.32 for SY25, compared to loss per share of PKR 46.16 in SY24. Furthermore, in 1QSY26, the company reported loss per share of PKR 26.94, compared to loss per share of PKR 32.78 in the same period last year (SPLY).
The mill crushed only 12,429 tons of cane during FY25, resulting in sugar production of 935 tons. A key operational challenge remains the diversion of sugarcane toward gur production. As gur is largely a tax free, cash based product, it provides immediate liquidity to farmers and is therefore more attractive than supplying cane to sugar mills. Annual ethanol production stands at approximately 18,200 tons.
The company procures molasses from Chashma Sugar Mills and other surrounding mills. Frontier Sugar Mills has ceased operations and has been delisted from the PSX. Management highlighted that the company was facing challenges regarding sugarcane availability in that region, and the facility now primarily comprises land and buildings with no ongoing operations. The proposed Gur Plant Project has been shelved.
Although the technical trial phase was successful, the project was deemed commercially unviable due to recipe constraints and technical complexities. Looking ahead, the company intends to revive its sugar segment by starting cane development program within its operational area. Management expressed strong confidence in executing a full and aggressive sugar season in 2026–27, supported by strategic changes aimed at ensuring adequate cane availability.
Important Disclosures
Disclaimer: This report has been prepared by Chase Securities Pakistan (Private) Limited and is provided for information purposes only. Under no circumstances, this is to be used or considered as an offer to sell or solicitation or any offer to buy. While reasonable care has been taken to ensure that the information contained in this report is not untrue or misleading at the time of its publication, Chase Securities makes no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time, Chase Securities and/or any of its officers or directors may, as permitted by applicable laws, have a position, or otherwise be interested in any transaction, in any securities directly or indirectly subject of this report Chase Securities as a firm may have business relationships, including investment banking relationships with the companies referred to in this report This report is provided only for the information of professional advisers who are expected to make their own investment decisions without undue reliance on this report and Chase Securities accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents At the same time, it should be noted that investments in capital markets are also subject to market risks This report may not be reproduced, distributed or published by any recipient for any purpose.