ADAM SUGAR MILLS LIMITED QUARTERLY REPORT (UN-AUDITED) FOR THE FIRST QUARTER ENDED DECEMBER 31, 2025
Telephones: *24]78 2 J6
|
FAXES
32401139-43
: 32427560-32417907
HAJI ADAM CH IViBEF
P 0. BOX 4274
ALTAF HUSSAIFJ ROW!?
Adam Sugar Mills Ltd.
D RECT VIEW
NEW CHALLI, KARACHI-PAKISTAN NTN: 0709384-5
On behalf of the Board of Directors, We are pleased to present the Un-Audited Financial Statements of the Company for the first quarter ended December 31, 2025.
Operating Results | ||
December 3L, 2025 | December 31, 2024 | |
Cane crushed - Metric Tons | 222,251 | 155,660 |
Average Recovery | 9.14% | 8.60% |
Sugar Produced - Metric Tons | 19,420 | 13,387 |
Commenced Crushing on | 15-11-2025 | 2I-11-2024 |
No. of season days | 47 | 41 |
The financial year 2024-25 was particularly challenging due to crop diseases that resulted in lower sucrose recovery, along with intermittent Government interventions such as lifting embargoes and portal closures. Despite these challenges, the Company successfully concluded the year and proposed a 40% dividend, reflecting resilience and sound management.
The operating results for the current qu arter are encouraging, with a notable improvement in sucrose recovery compared to the corresponding period of the previous year.
Future Outlook
We remain optimistic about achieving favorable results in the current financial year. The nationwide sugar production outlook is positive, as the current sugaccane crop is not only higher in quantity but also superior In quality compared to the previous season. This improvement is attr but able to increased acreage and higher yield per acre.
However, the performance of the sugar industry remains highly dependent on consistent Government support, particularly through non-intervention in operational matters. While the Government has deregulated sugarcane procurement prices, the selling price of sugar ha s effectively remained regulated through the imposition of rates linked to PBS benchmarks and controlled monthly price increases during certain periods of the last financial year. The industry continues to await full impjc mentation of the governmem's commitment toward comple tc deregulation.
Given the expected bumper sugarcane crop and higher sugar production, we are hopeful that the Government will allow timely sugar exports. Delayed export decisions often rest |t in missed opportunities in internation al markets, leading to lower rea|ization rates.
Acknowledgment
The Board sincerely appreciates the continued dedication and cooperation of the Company's officers, staff, and workers, and looks forward to their sustained commitment toward the Company's success.
On behalf of the Board of Directors
Gh@lazfi Ah ed fidam
Chief Executive Karachi: January 30, 2026
Mills : Chak No. 4, Ford Wah, Chistian (Distt Bahawalnagar) Phones : (063) 2501541-48 (063) 2503637 Liaison Office : 345-A/1, Gulberg - III, Opp. Nisar Art Press Lahore. Tel: (042) 35757216
Condensed Interim Statement of Profit or Loss (Un-Audited) | ||
For the period ended December 31, 2025 | December 31, | December 31, |
2025 | 2024 | |
Note | Rupees | |
Sales revenue - net Cost of sales Gross profit | 1,691,609,961 (l,526,844,23S) 164,765, 226 | 3,88O,456,8SS (3,708, 895, 610} 171, 561, 245 | |
Administrative expenses | (63,376,852) | (53,636,681) | |
Selling and distribution costs | (2,137,121) | (40,988,364j | |
(65,513,973) | (94, 625, 045) | ||
Operating profit | 99,251,253 | 76,936,201 | |
Finance costs | (zs,g7i,285j | (39,696,828) | |
Other income | 5,024,399 | 2,556,478 | |
Other operating expenses | (1,3Z5,520) | ( ,933,580) | |
(23,282,407) | (39,073,930) | ||
Profit before levies and taxation | 75,968,846 | 37,862,271 | |
Levies | (5,241,850) | (2,612,497) | |
Profit before taxation | 70,726,996 | 35,249,774 | |
Taxation- curre nt | (21,456,364) | (46,286,834) | |
Profit after taxation | 49,270,632 | (11,037,060) | |
Earnings per share- basic and diluted | 2.85 | (g.64) |
m mad Adam Chief Executive
The annexed notes from 1 to 16 form an integral part of these Nina ncial statements
r Adam Director
FaisaI Habib Chief Financial Office
Condensed Interim Statement of Financial Position (Un-Audited)
ASSETS
Non-current assets
Decem fi'er 31, 2025
Rupees
Se/ember30 2025
P rope rty, plant and equipment | 6,640,855,955 | 6,651,978,276 | ||
In tangibIe assets | 2,008,500 | 2,008, 500 | ||
Long term advances | 3,691,600 | |||
Long term deposits | 4,191,581 | 4,191,581 | ||
6,647,056,036 | 6,661,869,957 | |||
Current assets | ||||
Stores and spares | 145,922,713 | 124,2^7,83S | ||
Stock in trade | 1,996,689,596 | 801,926,516 | ||
Short term investments | 525,020,460 | 25,020,460 | ||
Trade debts - unsecured | 6 | 235,983,356 | 743,3T2,J97 | |
Short term loans, advances, de posits and prepayments | 238,782,727 | 137,680, 227 | ||
Others receivables | 13,554,964 | 10,822,087 | ||
Taxation net | 42,096,037 | |||
Cash and bank balances | 8 | 889,393,802 | 26,807,240 | |
4,087,443,655 | 1,869,816,562 | |||
Total assets | 10,734,499,691 | 8,531,686519 | ||
EQUITY AND LIABILITIES | ||||
Share capital and reserves | ||||
Authorized Capitol | 250,000,000 | 250,000,000 | ||
issued, subscribed and paid-up capital | 172,909,620 | 172,909,620 | ||
Surp|us on revalu atlon of property, p1an t and equ+pmen t- net | 3,389,766,629 | 3/18,091,417 | ||
Sh are preir +um | 172,909,620 | 172,909,620 | ||
Capitul contribution from direc tor | 18,601,691 | 18,601,691 | ||
3,581,Z77,940 | 3,609603,728 | |||
Revenue reserves. | 200,000,000 | 700,000,000 | ||
Unappropriated profits | 1,123,436,019 | 1,115.003,447 | ||
1,323,436,019 | i315,003,447 | |||
Total equity | 5,077,623,579 | 6,097,516,798 | ||
Non-current liabilities | ||||
Long term fin anring | 9 | 407,561,349 | 4$4,RT3, t$6 | |
1,281,284,803 | 1,250,559,803 | |||
ProvIdent furjd pay able | $,444,252 | 5,050, 58 | ||
1,664,290,404 | T,710,523,5 17 | |||
Current liabilities | ||||
Short term borrowings | 10 | 2,811, 920,580 | 870, 099,304 | |
SubordinaI ed Ioan from ChI‹*f Ex ‹°cuLive | 24,959,714 | 24,959,714 | ||
brade and other p ay ab les | 862, 379,ISS | 615,697,275 | ||
Acnuedmatup | 21,F66,984 | 26,843, 124 | ||
Current maturity of long term finance ng | 193,994,716 | 150,780,809 | ||
Current maturity of deferred income- Government grant | 987,054 | 1,010,766 | ||
Dividend | 76,777,505 | 7,613,657 | ||
Taxation-net | 26,641,558 | |||
3,992,585,708 | 1,723, 646, 207 | |||
Contingencies and commitments | ||||
Total equity and liabilities | 10,734,499,691 | 8,531,686,519 |
The annexed notes from T to 16 form an integral part of these financial statements.
h m A ad Adam " Chi Executive
dam Director
Faisal Habib Chief fiinancial Officer
Adam Sugar Mills Limited
Condensed Interim Statement of Cash Flows (Un-Audited)
far the period ended December 31, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before levies and Taxation
Adjustmentsfor non cosfi and otfier irems' Depreciation on property, plant and equipment
!Jo te
4.i
Decem her 3l, 202S
Decem ber 31.
2024
Rupees
37,862, 271
Finance cost
Pro fit on term deposit receipts
. Profit on saving accounts
Amortization of deferred government granI - Net
Provision for provident fund
Cash generated from operating activities before working capital changes
Working capital changes:
Decrease / nrreose} in current ossers
- S tores and spares Stock in trade
Short term investmen ts Grade debts
Short teim loans, advances
Trade deposlts and short term prepayments
Increase / (decrease) in current liabilities
Trade and other payables
97,224,406
7t,605,Z07 | 70,035,3 L7 |
625,000 | 914,238 |
26,971,285 fz,yaz,syyl | 39,696,828 |
{2,442) | |
(Z4,7t2) | |2 T4,900 |
720,900 |
|32,876,411 | |
1,999,949,730 | |
(500,000.000 | |
5O7,328,B4z | (707,097,266) |
{101.102,500} | (20,720,894 |
294,077,5S9 |
J49,014,653
1,533,332,718
Cash generated from / (used) Jn operat+ons
FinaociaI costs paid
(32,247,4ZS | {240,742,640 |
{411,477 | |
{4B,4B1,043 |
Pay ment to Provldent tund hazes paid
|895,578,335)
1,682,3d 7,371
(122,B29,635) {289, fi3S,160)
Net cash generated from / (used) in opera ting activities
CASH FLOWS FROM INVESTING ACTIVITY EN
Fixed Capitai Expenditure
Long term advances transferred
. Proflt received on saving accounts
. Profit received on invesrment in term deposit receipts Net cash generated from / (used) in investing activities
CASH FLOWS FROM FIDANCING ACTIVITIES
(j,0I8,407,971)
(60,482,886) | (13,2Od,997 | |
3,69T,600 | . | 30,86'4,'4 00 |
2,442 |
(56,788,645}
1,399,212,211
z7,6S9,403
. Lgng term loan obtained Long term loan repaid
Net cash (used) in financing activities
Net increase / (decrease) in cash and cash equivalents
2,030,877,2gZ (T6,0T3,248)
2,034,915, SBI | 30,792,73 8 |
zt,93B,60T | |
(Z5,976,500 | (46,805,986 |
1,39'4,3S8,3 66
Cash and cash equivalents at the beginning ol the period {977,466,466}
Cash and casfi equivalents at the end of the period The annexed notes from 1 to 16 form an integral jzart of these financial statements.
417,19J, 900
Faisal Ha6ib
Chief FinanciaI Officer "
Adam Sugar Mills Lirr.itedCondensed Interim Statement of Changes in Equity (Un-Audited)
For the period ended Deeember 3), 202$
Capital reserves Revenue reserves
Iss ued, subscribed and paid up c api tal
Surplus on revaluation of proper ty, plant and equipment
Capital
Share premium contribution General reserve mom Director
Unappropriated profits / (losses}
Total
Rupees | |||||||||||||
Balance as at September 30, 2023 (as previously repc ›-ted) | 17Z,9Q9/J0 | 3,780,7Z6,839 | 172,909,620 | 18,601,691 | 200,000,000 | 918,513,735 | 5,263,66T,505 | ||||||
Effect of restatement of corresponding figures | (TOO, T27, 698) | (65,996,416] | (I 66,124, 114) | ||||||||||
Balance as at September 30, Z0Z3 (as restated} Incremental depreciation transferred from surplus on | 172,903,620 | 3,680,589, 141 | 1y2, 909,620 | 18.601691 | 200,000,000 | 852,517,319 | S,097,537,391 | ||||||
revaluation of property, plant and equipment -net of deferred tax (restated)
Total com9rehensive income/ {loss] for the yeor
ended September 30, 202d
119, 179, 186]
73, 085,319
{33, 27 S, 452)
19, 179, 186
Profit after taxation (restated)
Other comprehensive income / (loss} (restated}
Transaction with owners
Fina| cash dividend @ 35% for the year ended September 30, 2023
(33,3T 5,9OO) -
--
- (38,375, 900) -- " --
73,08S,3T9
100,448
t60,518,3G8)
-
-
73, ABS, 767
39,809,8 G7
Balance as at September 30, 2024 (as restated)
Incremental depreciation transferred from surplus on reva|uation of property, plant and equipment -
net of deferred tax
Total comprehensive income for the year ended September 30, 2025
J72, 909,620 3,528,044,OSS
(t09,95t,638}172, 909, 620
18,601,69 1
200,000,000
(60,518,368)
984,363,904
5,076,8%890
- Profit after taxation
46,133,837
46,133,837
- Other comprehensive income
490,511
490,511
Tronsoction with owoers
46.624,348
46,624,348
Final cash dividend @ J5% for the year ended
September 3 0, 2024
2S,936,443j
Balance as at September 30, 2025
172,909,620
3,4t8,092,4T7
172,909,620
18,60t,691
200,000,OOD
5,097,516,795
Total comprehen sive incomefor the 9eriod
ended December 3J, 2025
Profit after tax
- Other comprehensive income/loss
Transfer to unappropriated profits on
accounI of incremental depreciation
Tronsaction with owners
Final Cash dividend @ 40% for the year
49,270,632 49,Z70,632
(Zg,32$,788)
49,270,63249,270,632
ended September 30, 2025 | (69,163,848j | (69,163,848) | ||||
Balance as at December 3, 2025 | 172,909,620 3,389,766,629 | 172,909,6yD | 18,6O1,6 91 | 200,O00,OO0 | 1,1Z3,436,019 | 5,077,623,579 |
The annexed notes from 1 to 16 form an integral part of these financial st atements.
la Ah d Adam ief x ecutive
Faisal Habib
Chief fiinancial Officer
Adam Sugar Mills Limited
Condensed Interim Statement of Comprehensive !ncome (Un-Audited)
For the period ended December 31, 2025
December 31, December 3 ,
2025 2024
Rupees
Profit after taxation
Other comprehensive (loss) / income for the year
Items thot will not be reclassified subseguen tly
tO QI'O it OP JOSS
Gain / (Loss) on remeasurement of defined benefit obligation Deferred tax on above
Total comprehensive income for the year
49,270,632
49,270,632
(11,037,060)
(11,037,060)
The annexed notes from 1 to 16 form an integral part of these financial statements
Gfiulam mad Adam Chief Executive
, '|
(t
Faisal Habib
Chief Financial Officer
Adam Sugar Mills Limited
Notes to the Condensed interim Financial Statements (Un-Audited) For the quarter ended December 31, 2025
1. STATUS AND NATURE OF BUSINESS
Adam Sugar Mills Limited ('the Company') was incorporated in Pal‹istan on October 19, 1965 in the ma me of B ahawalnagar Sugar Mills Limited as a public limited company under the provisions of the Companies Act, 1913 (repealed with the enactment of the Companies Ordinance, 1984, and subsequently, the Companies Act, 2017, promulgated in May 2017). In T985, the name of the Company was changed to Adam Sugar Mills Limited. The shares of the Company are quoted on Pal‹istan Stock Exchange ("the Exchange"). The Company is principally engaged in the manufacturing and sale of white sugar.
The geographical location and address of the Company's business units, including plant, are as under:
Head office: The Company's registered office is situated at first floor, Haji Adam Chambers, Altaf Hussain Road, New Challi, Karachi.
Mill: The Company's plant is located at Chak #4, Fordwah, Chishtian, District B ahawalnagar, Punjab.
BASIS OF PREPARATIONStatement of compliance with the applicable accounting and reporting standards
hese financia I state ments have been prepared in accords nce with the accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards applicable in Pakistan comprise:
list emation al Finane al Reporting Standards (IFRS) issued by the International Accou nting Standards Board (IASB) as notified under the Compan ies Act, 2017;
Provision of, and directives issued under, the Companies Act, 2017.
Where the provisions of, and directives issued under, the Comoanies Act, 2017 differ from the IFRS, the provision of, and directive issued under, the Companies Act, 2017 have been followed.
Basis of measurement of items in these financial statements
Items included in these financial statements have been measured at their historical cost except for freehold land, factory building, non-factory building and plant and machinery whichi are carried at revalued a,mounts less accumulated depreciation charged thereon.
Functional and presentation currency
Items included in these financial statements are measured using the currency of the primary economic environment in which the Company operates. These financial statements are presented in Pak Rupees which is the Company's functional and presentation currency.
Use of estimates and judgments
In preparing these financial statements, management has made judgements and estimates that affect the application of the Company's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
Judgements
Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the financial statements is included in the following notes:
Area of judgement
Brief aescription of the judgement applied
and equipment
Whether the colasuiaiption of future economic bene fits embodied in the Cornpany's fixed asee ts is reduced o 'er time aiid, accordingly, whether it is appropriate to use 'diminishing balance method' as the dcprcc iation method.
Ti ming oI revenue
reco"nition
Lr›‹'a/ sales re ve/iiic :
Whether control of the promised goods is transferred to the customer when the goods are dispatched from the Company's premises.
Export sales i-cvenii e :
\dactlaci coJatl ›1 of the } i oiaais ed goods is train› fen ed to the custooter when the gr›od.s are loaded onto the slaipp ing vcsset and, as an acknou'1cdgcment thereof. a bill of ladinq is issued bv the shipping company.
Assumptions and other major sources of estimation uncertainty
Information about assumptions and estimation uncertainti'as at the reporting date that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities in the next financial year is included in the following notes:
Area of estimation uncertainty | Brief description of the assumption or the source of estimation uncertainty |
Proper-ty, plant and equipment | -Estimation ofuseful lives and residual values of the operating tixed assets - Estimation of revalued amounts of freehold land, factory building, non-factory building and plant and machinery. |
Deferred taxation | Recy'mition of deferred tax assets on unused tax losses and unused tax cr•.dits - availability of future taxable profit against which deductible temporary differences and unused tax losses and unused tax credits can be utilised |
The material accounting policies adopted in the preparation of these interim condensed financial statements are those applied in the preparation of the financial statements for the year ended September 30, 2025.
1,655,747,966 | 592,093,056 |
210,612,293 | 204,314,561 |
4 PROPERTY, PLANT AND EQUIPMENT
Note
31-Dec-25
Un-Audited
Rupees
30-Sep-25
Audited
Operating fixed assets | 4.1 | 6,512,686,512 | 6,225,458,341 | |
Capital work in progress | 97,050,804 | 388,549,985 | ||
Capital Spares | 31,118,639 | 37,969,950 | ||
6,640,855,955 | 6,651,978,276 | |||
4.1 Operating fixed assets | ||||
Opening written down value | 6,225,458,341 | 6,371,399,758 | ||
Addition to fixed assets - tangible | 358,833,378 | 132,933,290 | ||
Depreciation charged | (71,605,207) | (278,874,707) | ||
6,512,686,512 | 6,225,458,341 | |||
4.2 Additions to fixed assets - tangible | ||||
Factory buildings on freehold Iand | 1,120,327 | 15,305,855 | ||
Plant and machinery | 34B,618,160 | 54,500,1 18 | ||
Vehicles | 440,150 | 48,582,764 | ||
Computer and other equipments | 144,000 | 3,922,334 | ||
Furniture and fixtures | 300,000 | 2,920,974 | ||
Water connections and electrical installations | 5,665,891 | 6,635,595 | ||
Tools and other eauipments | 2,544,850 | 1,065,650 | ||
358,833,378 | t32,933,290 | |||
|
STOCK IN TRADE | ||||
Work-i n-process | 130,329,338 | 5518,899 | ||
Finished goods- Sugar | ||||
Finished goods- Molasscs | ||||
1,866,360,259 | 796,^07,617 | |||
1,996,689,596 | 801,926,516 | |||
6 TRADE OEBTS - unsecured, considered good | ||||
Receivable against sales of suga-r Net | 235,983,356 | - 743,312,197 | ||
Loans to staff Advances: | 5,390,149 | 2,058,421 |
- to growers | ||
- to contractors | ||
- to suppliers | ||
- against expenses | ||
- others | ||
48,517,959 | 52,604,219 | |
Withholding tax deposits with federal board of revenue | 138,056,818 | 39,742,281 |
- Security deposit - Commissioner Workmen's Compensation Bahawalnagar | 42,841,568 | 42,841,568 |
12,293,945 | 28,606,327 |
841,501 | 2,266,820 |
35,227,005 | 21,553,523 |
108,049 | 177,549 |
47,459 |
Prepayments 3,976,233 433,738
238,782,727 137,680,227
CASH AND BANK BALANCESCash in hand Cash at bank
Current accounts
Deposit accounts
2,956,560
886,291,436 | 26,447,638 |
145,806 | 359,602 |
886,437,242 26,807,240
889,393,802 26,807,240
rro n conventional banking companies
Habib Bank Limited
From Islamic banking companies
Dubai Islamic Bank Pakistan Limited - SBP Solar Financing Current maturity shown under current liabilities
10 SHORT TERM BORROWINGS587,914,799 591,952,698
13,641,267 13,641,267 601,556,066 605,593,965
(193,994,716) (150,780,809) 407,561,349 454,813,156
Unsecured - interest free
from Chief Executive
32,164,394
32,164,394
from Adam Lubricants Limited (a reJated concern) 840,057,389 744,841,005
872,221,783 777,005,399-from Conventional banking companies
Habib Bank Limited 93,093,905 93,093,905
-from lslomic banking componies
AL Baraka Bank Limited
BanK Of Punjab Cash Finance
Meezan Bank Limited
UBL Ameen
Bank AI Falah Islamic Banking
Askari Bank Limited
220,488,834 275,6Z5,000 600,013,908 400,000,000 lsl,459,921 292,111,134 |
1,939,698,797
2,811,920,580
870,099,304
10.1 The short term credit facilities availed from banking companies comprise of Islamic Financing. These finances are secured against pledge of white refined sugar and personal guarantee of Chief Executive of the Company. Mark up charging rate for Islamic Financing markup at the rate of relevant KIBOR + 1.50% to 2.00%.
CHIEF EXECUTIVE- unsecured | |||
Outstanding amount of the loan | 24,959,713 | 24,959,713 | |
Outstanding amount of the loan Balance as at the beginning of the year | 24,959,714 | 22,571,399 | |
Add: Interest on unwinding of the loan during the periocl 2,388,315
24,959,714 24,959,7T4
As of September 30, 2025, the outstanding carrying amount of the loan was fully amortized to its nominal value (i.e. Rs. 24.96 million). However, the terms of the loan were not renegotiated with the Chief Executive of the Company and is repayable on demanad.
CONTINGENCIES AND COMMITME NTS
There is no significant change in the status of contingencies and commitments as reported in the audited financial statements for the year ended September 30, 2025.
31-Dec-25
Un-Audited
- Rupees
31-0ec-24
Un-Audited
SALES REVENUE - net
Local
Sale of Sugar Sale of Molasses Sale of Others
Export
1,457,840,398 | 2,977,325,816 |
221,573,200 | 1I,943,B78 |
12,195,863 | 3,636,593 |
1,691,609,461 2,992,906,287
887 550,568
1,691,6O9,46t 3,880,456,855
The related parties comprise associated undertakings, related group companies, local assocaies, directors and key management personnel. Transaction with related parties are carried out on arm's length basis.
Transactons with associated undertakings and related parties and other key management personnel under the term ofl their employment are as follows-:
Adam Lubricants Limited | 31-Dec-25 unAudited Rupees | 30-Sep-25 Audited |
Transactions during the period Lubricants purchased during the period / year | 13,042,941 | 7,647,770 |
Payment against purchases during the period / year | 8,265,770 | 8,167,642 |
Loan received during the period / year | 2,191,285,104 | 2,932,815,970 |
Loan repaid during the period / year | 2,096,068,720 | 3,01B,042,965 |
Balances at the end oj'' the period Payable against purchases | 5,787,942 | 1,010,771 |
Short term loan payable | 840,057,389 | 744,841,005 |
Chief Executive | ||
Balances ot the end of the period/ year Short term loan | 32,164,394 | 32,164,394 |
Subordinated loan | 24,959,713 | 24,959,713 |
DATE OF AUTHORISATION FOR ISSUE
These financial staI ements have bee n authorised for issue on January 30, 2025 by the Board of Directors of the
Comp any.
GENERAL
Figures have been rounded off to the nearest rupees.
G I Ah ad Adam Chief xecutive
dam Director