KARACHI: Abdullah Shah Ghazi Sugar Mills Limited (PSX: ASGSML) reported a net loss after taxation of Rs192.08 million for the nine months ended June 30, 2026, compared with a loss of Rs175.90 million recorded during the corresponding period last year, reflecting the impact of operational disruptions during the crushing season.
According to the company’s third-quarter financial report, the mill remained unable to continue operations during the 2025-26 crushing season after facing serious technical issues in one of its boilers and power turbines. The shutdown significantly affected production and revenue generation throughout the reporting period.
The company reported no sales revenue during the nine-month period, compared with Rs260.87 million in the same period of the previous year. Consequently, it recorded a gross loss of Rs162.41 million, while operating loss stood at Rs174.42 million. Finance costs remained high at Rs101.48 million, further weighing on the company’s financial performance.
Loss before taxation was reported at Rs265.72 million, while the company recognized a tax credit of Rs73.64 million, resulting in a final after-tax loss of Rs192.08 million. Earnings per share (EPS) for the period came in at negative Rs2.42, compared with negative Rs2.22 in the corresponding period last year.
In their review, the directors highlighted that Pakistan’s domestic sugar prices remain substantially lower than international levels despite rising sugarcane costs. The board emphasized the need for policy measures to narrow the gap between local and global sugar prices, arguing that sustainable pricing is necessary to support growers and ensure the long-term viability of the sugar industry.
The financial statements also indicate that the company continues to face significant financial challenges. As of June 30, 2026, accumulated losses reached approximately Rs2.94 billion, while current liabilities exceeded current assets, raising material uncertainty regarding the company’s ability to continue as a going concern.
Despite these challenges, management expressed confidence that ongoing negotiations with financial institutions to restructure debt, arbitration efforts related to outstanding disputes, continued sponsor support, and operational efficiency initiatives will help improve liquidity and support the company’s long-term recovery.
