CHAS reported a net loss of PKR 2.64 billion (LPS: PKR 91.92) in SY24, compared to a net profit of PKR 1.70 billion (EPS: PKR 59.22) in the previous year.
The loss was primarily driven by higher sugarcane prices and increased finance costs due to higher carryover stock and a lower recovery rate. In 1QSY25, CHAS crushed 1,484,965 MT of sugarcane, producing 144,654 MT of sugar and 9,170 MT of ethanol. The crushing season concluded on March 3, 2025. Gross profit declined to PKR 2.22 billion, impacted by elevated sugarcane prices in SY24. For SY24, CHAS produced 171,591 MT of sugar (SY23: 211,871 MT) and crushed 1,726,610 MT of sugarcane (SY23: 1,963,169 MT), with a recovery rate of 9.9% (SY23: 10.8%).
Molasses consumption stood at 176,201 MT (SY23: 173,139 MT), while molasses production reached 34,443 MT (SY23: 33,899 MT) with a recovery rate of 19.55% (SY23: 19.58%). CHAS extended financial assistance of over PKR 500 million to sugarcane growers for the upcoming crushing season to improve yields.
Management highlighted key challenges, including rising production costs, lower crop yields, and government policies. In SY24, sugar prices were reported at over PKR 450 per maund, while in the current season, they stood at PKR 443 per maund. Ethanol and molasses prices remained at the lower end during the period.
The government restricted sugar exports for KPK-based companies, impacting sales. CHAS carried forward a stock of 30,000–40,000 MT due to the export ban. Going forward, management expects total sugar production to reach approximately 6 million tons. Wheat prices are expected to be determined after Eid-ul-Fitr. If no government intervention occurs and sugar prices remain elevated, the company expects profitability in the coming year.
Important Disclosures
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