Karachi, August 1, 2026 – Sindh Abadgar’s Sugar Mills Limited (SASM) reported a net loss for the nine-month period ended June 30, 2026, as lower sugar sales, weaker prices, and significantly higher finance costs weighed on the company’s financial performance. The results were announced in the company’s unaudited condensed interim financial statements.

The company posted a net loss after tax of Rs164.5 million for the nine months ended June 30, 2026, compared to a net profit of Rs119.1 million recorded during the same period last year. Consequently, SASM reported a loss per share (LPS) of Rs15.78, compared with earnings per share (EPS) of Rs11.43 in the corresponding period of 2025.

According to the directors’ report, net sales declined by approximately 19%, falling to Rs2.64 billion from Rs3.25 billion a year earlier. The decline was primarily driven by a reduction in sugar sales volume, which dropped from 31,816 metric tons to 21,061 metric tons, coupled with a decrease in average selling prices.

The company also faced mounting financing expenses. Finance costs surged to Rs228 million, compared with Rs29 million during the same period last year, reflecting higher borrowing costs amid elevated interest rates and increased working capital requirements. These factors significantly eroded profitability despite operational efforts to improve efficiency.

SASM highlighted that Pakistan’s sugar industry continues to face considerable challenges due to delays in government approval for sugar exports. The company noted that surplus sugar inventories across the industry have remained unsold, resulting in higher warehousing costs, increased financing needs, and liquidity pressures. It added that declining domestic sugar prices have further squeezed industry margins, making it difficult for mills to recover production and financing costs.

Looking ahead, the company expects sugarcane cultivation to increase by around 5% for the upcoming crushing season, with national sugar production potentially exceeding 7 million metric tons. However, management warned that without a timely and transparent export policy, another bumper crop could worsen the supply-demand imbalance and further pressure the industry.

Despite the challenging environment, SASM said it remains focused on operational excellence, improving sugar recovery rates, optimizing costs, prudent treasury management, and efficient working capital utilization to safeguard shareholder interests and strengthen its long-term financial position.