Mehran Sugar Mills Limited recorded loss per share of PKR 10.7 in SY24, as compared to earning per share of PKR 19.3 in SY23. In 1QSY25, the company reported an earnings per share of PKR 3.0, as compared to earning per share of PKR 6.3 in 1QSY24. The company produced 72,600 tons of sugar this year. Due to a smaller crop size, sugarcane was procured at PKR 460 per maund. The sucrose recovery rate stood at 10.22%, compared to 10.79% last year. Currently, the replacement cost of imported sugar, including sales tax, is approximately PKR 200 per kilogram. This has helped local sugar prices stabilize within the range of PKR 160– 170 per kilogram.
According to management, sugar prices have remained between PKR 155–159 over the past month, in line with government directives. They also noted that sugar lifting has been low during this period. With regard to Unicol, management stated that the company is currently operating profitably.
However, if sugar lifting continues to remain low, the associated holding costs may negatively impact profitability. As of April 15, management reported that the remaining sugar inventory stands at approximately 3.8 million tons. Looking ahead, the company is placing greater focus on cane development, as they believe there is significant potential to improve yields at the farm level.
Important Disclosures
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