Mehran Sugar Mills : Transmission of Quarterly Report for the Period Ended June 30, 2023

Potential

of Sugar

Industry

Quarterly Report

June 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.

		Quarterly Report June 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 period ended June 30, 2023.

Operational Highlights	June 2023	June 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	39,811
Molasses Recovery	4.70%	4.65%
Financial Highlights	June 2023	June 2022
(Rupees in Thousand except EPS)
Turnover	7,406,804	4,786,589
Sales tax	909,433	592,017
Gross Profit	1,277,409	866,353
Gross Profit margin	19.66%	20.65%
Finance cost	555,493	380,455
Profit before tax	1,440,693	344,828
Profit before tax margin	22.17%	8.22%
Net Profit after tax	1,045,766	259,422
Net Profit margin	16.10%	6.18%
Earnings per share	13.96	3.49

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

• Turnover increased by 55% from previous year. This was attributed to the large carryover of sugar stocks from the previous year as well as increase in selling price of sugar, molasses and bagasse.
• Profit before tax increased substantially. The main component of this was our profitability at Unicol Limited as well as a one time gain from the sale of Unifoods assets. Also after a few years, the sugar Divison has performed well with reasonable margins attained from exports of sugar as well as domestic sales and production efficiencies.
• Finance cost has increased by 46% as compared to the previous period. While this is concerning the fact that it is lower than the percentage increase in turnover makes it manageable. Finance cost being high for the company is predominantly due to the higher cost of borrowing which has increased to 24 percent this year. The other major factor remains the company's business decision to make prompt sugarcane payments. Sugarcane is a long duration crop whereby farmers plant it for more than 12 months thus it is imperative to pay the farmer as soon as he delivers it to the mills to ensure he sees value and sustainability in planting it year on year.
• Gross profit margin have remained more or less constant to the previous period. The huge nationwide carryover of sugar from the previous year

Quarterly Report June 2023

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