Sanghar Sugar Mills Posts 72% Surge in Nine-Month Profit, EPS Climbs to Rs10.28

KARACHI: Sanghar Sugar Mills Limited (PSX: SSML) has reported a strong improvement in its financial performance for the nine-month period ended June 30, 2026, with profit after tax rising by nearly 72% compared to the same period last year, driven by improved operating margins and lower finance costs.

According to the company’s unaudited condensed interim financial statements approved by the Board of Directors on July 29, 2026, Sanghar Sugar Mills posted a net profit of Rs122.80 million, compared with Rs71.48 million in the corresponding period of 2025.

Earnings per share (EPS) increased significantly to Rs10.28, up from Rs5.98 a year earlier, reflecting the company’s improved profitability.

During the nine-month period, net sales stood at Rs4.35 billion, slightly lower than Rs4.84 billion recorded in the same period last year. Despite the decline in revenue, the company improved its gross profit to Rs591.97 million from Rs449.72 million, benefiting from better cost management and stronger gross margins.

Operating profit also registered healthy growth, reaching Rs378.46 million, compared with Rs268.88 million in the corresponding period of the previous year. Finance costs declined to Rs114.33 million from Rs135.04 million, further supporting earnings growth. In addition, the company did not incur any levies during the period, unlike the previous year when levies amounted to Rs66.69 million, contributing to the improved bottom line.

For the quarter ended June 30, 2026, Sanghar Sugar Mills earned a profit after tax of Rs37.44 million, compared with Rs27.33 million in the same quarter last year. Quarterly EPS improved to Rs3.14, up from Rs2.28.

The Board of Directors did not recommend any cash dividend, bonus shares, right shares, or any other entitlement for the nine-month period ended June 30, 2026.

On the financial position side, the company’s total assets increased to Rs8.47 billion as of June 30, 2026, compared with Rs6.02 billion at the end of September 2025, while shareholders’ equity rose to Rs3.25 billion from Rs3.12 billion, reflecting the accumulation of profits during the period.

The latest results indicate that Sanghar Sugar Mills has strengthened its profitability despite lower sales, supported by improved operational efficiency, reduced financing expenses, and the absence of levies that impacted the previous year’s performance.