Al Noor Sugar Mills Limited (ALNRS) reported earnings per share of PKR 5.25 for SY25, compared to loss per share of PKR 2.20 in SY24. Furthermore, in 1QSY26, the company reported earnings per share of PKR 4.98, compared to loss per share of PKR 2.11 in the same period last year (SPLY).
The company remains a pioneer in the Medium Density Fiberboard (MDF) market, operating two primary production lines: the Mande Line, which produces thin boards of approximately 3.2mm typically used for partitioning applications, and the Sunds Line, which focuses on thicker sheets in the 16–18mm range.
Production declined slightly to 63,867 cubic meters compared to 67,512 cubic meters SPLY, primarily due to a 25-day planned maintenance shutdown. Despite the temporary reduction in output, management indicated that domestic demand for the “Lasani” brand remains robust. In the sugar segment, the sugarcane rate at the start of the crushing season commenced at PKR 400 per 40kg and has since stabilized in the PKR 440–450 range. The seasonal average price is now expected to close around PKR 465 per 40kg.
Current ex-mill prices are hovering at PKR 137–140 per kg, which remains below the projected cost of production. However, profitability in 1QFY26 was supported by the sale of carryover inventory that had been realized at higher prices in the PKR 165 175 per kg range, providing a temporary margin cushion. Management estimates that the total cost of production for the current season will fall between PKR 147 and PKR 150 per kg. The company also operates a 36 MW bagasse-fired power plant, of which approximately 10 MW is consumed internally. While the facility has the capacity to supply surplus power to the national grid, management noted that doing so is currently not economically viable given the rising market price of bagasse.
Important Disclosures
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