Al-Noor Sugar Mills Posts Rs27.6 Million Nine-Month Profit Despite Lower Revenue

KARACHI: Al-Noor Sugar Mills Limited reported a net profit of Rs27.56 million for the nine months ended June 30, 2026, compared with Rs39.98 million recorded in the corresponding period last year, as higher levies and deferred taxation weighed on earnings despite improved operational performance.

According to the company’s condensed interim financial statements, earnings per share (EPS) declined to Rs1.35, compared with Rs1.95 in the same period of the previous year.

During the review period, net sales fell 9% to Rs10.50 billion from Rs11.54 billion a year earlier. However, the company managed to maintain its gross profitability, with gross profit improving slightly to Rs1.71 billion, compared with Rs1.70 billion in the corresponding period, reflecting effective cost management and operational efficiencies.

Operating profit increased to Rs826.75 million, up from Rs711.30 million last year. However, the benefit was offset by finance costs of Rs731.98 million, while levies surged to Rs152.85 million, significantly higher than Rs47.90 million in the previous year’s comparable period. These factors reduced profit before tax to Rs75.40 million, compared with Rs175.31 million a year earlier.

Stronger Sugar Production

The company reported a substantially improved sugarcane crushing season, supported by favorable weather conditions and better water availability.

During the first nine months of FY2026:

  • Sugarcane crushed increased to 886,406 metric tons from 747,944 metric tons.
  • Sugar production rose 27% to 90,853 metric tons.
  • Sugar recovery improved to 10.25%, compared with 9.56% in the previous year.
  • Molasses production increased to 45,580 metric tons from 39,072 metric tons.

MDF Division Delivers Steady Performance

The company’s MDF Board division also recorded steady growth, with production increasing by 3.81% year-on-year to 52,666 cubic meters, supported by adequate raw material availability and consistent market demand. Management noted that the division continues to benefit from a stable customer base in both domestic and export markets.

Outlook

Looking ahead, Al-Noor Sugar Mills expects the upcoming sugarcane crop to improve further due to higher grower prices and timely payments. However, management cautioned that surplus sugar production could continue to pressure domestic prices unless export permissions are granted. The company said the Pakistan Sugar Mills Association has requested the government to allow sugar exports, which it believes would benefit the industry and its stakeholders. Meanwhile, the MDF business is expected to maintain stable performance, supported by sustained demand in local and international markets.