JDW Sugar Mills Limited, which is one the largest white sugar producer in the country, has announced its consolidated financial results for nine months, ending on June 30, 2020.
The company posted a profit after tax of Rs. 721.34 million, which contracted by 46.20% as compared to a profit of Rs. 1.34 billion recorded in the same period last year. The decline in profitability was due to a decrease in the revenue of the company.
According to the filing to the PSX, the revenue from the decrease in customers came down by 12% to Rs. 43.39 billion during the nine months as compared to Rs. 49.32 billion recorded in the same period last year.
This took the gross profits to Rs. 6.10 billion, down by 2.71% as compared to Rs. 6.27 billion recorded in the same period last year.
The company’s administrative expenses stood at Rs. 1.42 billion as compared to Rs. 1.13 billion, showing an increase of 25.70%. The selling expenses were reported at Rs. 58.78 million as compared to Rs. 56.97 million. Other income decreased to Rs. 396.29 million, down by 37.15% as compared to Rs. 587.51 million last year.
On the flip side, the other expenses were reported Rs. 601 million as compared to Rs. 797 million during the nine months period.
Due to higher markup rates during the period, the finance cost of the company increased by 6% to Rs. 3.26 billion as compared to Rs. 3.08 billion but the rates were cut during the last three months of the period. However, it has also reported a share of loss from investment in an associate of around Rs. 751.06 million.
At the time of filing this report, JDWS shares at the bourse were trading at Rs. 243, up by Rs. 1.12 or 0.46%, with a turnover of 4,200 shares on Monday.
The Sugar Division comprises three sugar mills units, JDW Unit-I, JDW Unit-II, and JDW Unit-III in the districts of Rahim Yar Khan and Ghotki.
It is one of the largest groups in the sugar sector and contributes approximately 15-17% of the country’s sugar production. It is also managing Sugarcane Corporate Farms over an area of 24,000 acres in Punjab and Sindh.