Mehran Sugar Mills : Transmission of Half Yearly Report for the Period Ended March 31, 2023

Potential

of Sugar

Industry

Half Yearly Report

March 2023

m e h r a n s u g a r . c o m

Potential

of Sugar

Industry

Recent spike in prices of Sugar in the global commodity markets have brough back focus on sugar sector. Thus, potential in export is great. If we act fast, we can actually gain foreign exchange and sugar industry can be a major contributor in taking our economy forward. Our theme this year is about the potential in sugarcane industry and it's bi-products. Let us take you through it and discover great things we can achieve.

		Half Yearly Report March 2023	1

COMPANY INFORMATION

Board of Directors	Chairman
Mr. Mohammed Kasim Hasham
Mr. Ahmed Ebrahim Hasham	Chief Executive Officer
Mr. Mohammed Hussain Hasham	Non-Executive Director
Mr. Khurram Kasim	Non-Executive Director
Mrs. Anushey A. Hasham	Female Director
Mr. Hasan Aziz Bilgrami	Independent Director
Mr. Iftikhar Soomro	Independent Director
Management Team	CEO
Mr. Ahmed Ebrahim Hasham
Mr. Muhammad Hanif Aziz	Chief Financial Officer
Mr. Syed Ehtesham-ud-din	Resident Director
Mr. Ubaid-ur-Rehman	GM Technical
Mr. Ali Hassan	GM Finance & Company
	Secretary
Audit Committee	Chairman
Mr. Hasan Aziz Bilgrami
Mr. Mohammed Hussain Hasham	Member
Mr. Khurram Kasim	Member
Mrs. Anushey A. Hasham	Member
Mr. Najamul Aqib	Secretary
Human Resource &
Remuneration Committee	Chairman
Mr. Iftikhar Soomro
Mr. Mohammed Hussain Hasham	Member
Mr. Ahmed Ebrahim Hasham	Member
Mr. Khurram Kasim	Member
Management Committee	Chairman
Mr. Ahmed Ebrahim Hasham
Mr. Muhammad Hanif Aziz	Member
Mr. Ehtesham-ud-din	Member

Legal Advisor

Sayeed & Sayeed

Advocate & Legal Consultants

KMS Law Associates

Advocates & Corporate Consultants

Share Registrar

CDC Share Registrar Services Limited

CDC House, 99-B , Block B S.M.C.H.S ,

Main Shahra-e-Faisal Karachi

Near Metropole Hotel, Karachi

Ph: +92 - 21 -35687839, 35685930

Bankers

Bank Al Habib Limited

Meezan Bank Limited

MCB Bank Limited

Bank Alfalah Limited

Habib Metropolitan Bank Limited

Askari Bank Limited

Allied Bank Limited

BankIslami Pakistan Limited

Bank of Punjab Limited

Executive Tower, Dolmen City,

14th Floor, Block-4, Marine Drive, Clifton, Karachi-75600

Tel: [phone]

Fax: [phone] [e-mail] www.mehransugar.com

	Mills
Auditors	Tando Adam Road, Distt. Tando Allahyar.
Tel: [phone]
Grant Thornton Anjum Rahman
Fax: [phone]
Chartered Accountants

2 Mehran Sugar Mills Ltd.

DIRECTORS' REPORT

On behalf of the Board, I am pleased to present financial results for the half year ended March 31, 2023.

Operational Highlights	March 2023	March 2022
Crushing - M. Tons	804,872	856,944
Sucrose Recovery	10.66%	11.16%
Sugar Production - M. Tons	85,796	95,642
Molasses production - M. Tons	37,867	40,185
Molasses Recovery	4.70	4.69%
Financial Highlights	March 2023	March 2022
	(Rupees in Thousand)
Turnover	3,571,490	2,591,242
Sales tax	400,413	271,764
Gross Profit	380,581	668,157
Gross Profit margin	12.00%	28.81%
Finance cost	305,007	195,068
Profit before tax	766,973	298,187
Profit before tax margin	24.19%	12.86%
Net Profit after tax	396,993	173,626
Net Profit margin	12.52%	7.49%
Earnings per share - Rs.	5.83	2.55

Following are the key highlights on the operational and financial results for this period.

• Our sugar production was 10.3% less than last year, while Pakistan production was 17.5% less than last year and Sind 25.76% less than last year. Sucrose recovery declined marginally to 10.66% from 10.72% the previous year. This was largely due to a shorter crushing season whereby large quantities of cane were crushed before the month of March when recoveries increase substantially. The effects of the devastating floods prior to start of crushing season meant the quality of sugarcane in some regions had deteriorated.
• Turnover increased by 37% from previous year. However, this was attributed to the large carryover of sugar stocks from the previous year since sales were difficult due to the huge glut of sugar in the country.
• Profit before tax increased by 157%. This was largely due to other income from Unicol and sales proceeds of Unifoods investments. We must point out that this does include sugar sales of the previous year, which were at a low GP margin due to the depressed sugar market. Also the huge burden of carrying this sugar and paying extremely high financial costs as been absorbed in these results.
• The one major difference in comparative financial results is the huge finance cost borne by the company. Finance cost increased from Rs. 195 million to Rs. 305 million. This was a 56% increase from the previous corresponding period.

Half Yearly Report March 2023

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