MEHRAN SUGAR MILLS LIMITED
CORPORATE BRIEFING SESSION
APRIL 2025
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IMPORTANT DISCLAIMER
This Corporate Briefing Session presentation prepared by Mehran Sugar Mills Ltd is exclusively for the discussion purpose with the participants only. Any expression, information, statement or representation made during the discussion shall not be infer by any investor or potential investor as an advice or recommendation in relation to holding , purchasing or selling securities without proper consideration. It is suggested before acting on any information shared or and remarks made during the discussion process, one should seek appropriateness and accuracy of information.
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Corporate Briefing
MANAGEMENT INFOMRATION
Board of Directors | |
Mr. Mohammed Kasim Hasham | Chairman |
Mr. Mohammed Hussain Hasham | Executive Director |
Mr. Iftikhar Soomro | Independent Director |
Mr. Hasan Aziz Bilgrami | Independent Director |
Mr. Khurram Kasim | Non-Executive Director |
Mr. Ahmed Ebrahim Hasham | Executive Director |
Mrs. Anushey A. Hasham | Non-Executive Director |
Management Team | |
Mr. Ahmed Ebrahim Hasham | Chief Executive Officer |
Mr. Muhammad Hanif Aziz | Chief Financial Officer |
Mr. Muhammad Ubaid-ur-Rehman | Technical Director |
Mr. Ali Hassan | GM Finance & Company Secretary |
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Corporate Briefing
IMPORTANT EVENTS / SYNOPIS
- Crushing season 24-25 has surprised everyone with the initial crop estimate. Production now stood at approx. 6.0 Million tons with consumption at 6.4-6.6 Million Tons.
- Mehran's Sugar production is 72,600 Tons as compared to 97,300 Tons in the previous year.
- Due to lower crop size, Cane Procurement competition was aggressive in our region during the crushing season and we procured cane at around Rs. 460 per mound. Further there were reduction in overall recovery in Pakistan around 0.5%, Ours recovery also dropped from 10.79% last year to 10.22% during this year.
- Future profitability will depend upon future direction of the sugar prices.
- Replacement values for sugar imports today stand at Rs. 200 per kg with sales tax, thus allowing local prices to stabilize at Rs. 160 -170 per kg with sales tax in the short term.
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Corporate Briefing
FINANCIAL HIGHLIGHTS - QUARTER ENDED DEC'2024
Income Statement | Rupees in thousands | |||||||
Sales & Profitability | 2024 | 2023 | ||||||
Turnover-net | 3,908,643 | |||||||
Turnover - net | 1,705,052 | |||||||
Cost of Sales | 3,566,651 | 1,411,026 | ||||||
Gross Profit | 341,993 | 294,026 | ||||||
Operating Profit | 346,488 | 576,757 | ||||||
Profit before tax & levies | 284,758 | 505,816 | ||||||
Profit for the year after tax & levies | 227,120 | 474,121 | ||||||
Financial Position | ||||||||
Fixed Assets-net | 2,424,423 | |||||||
Financial Asset | 2,506,737 | |||||||
Other non-current assets | A | 1,133,675 | 1,817,906 | |||||
3,558,098 | 4,324,643 | |||||||
Current Assets | 9,122,778 | 7,914,475 | ||||||
Current Liabilities | (8,713,409) | (6,629,229) | ||||||
Working Capital | B | 409,369 | 1,285,246 | |||||
Capital Employed | A+B | 3,967,467 | 5,609,889 | |||||
Less: Non-Current Liabilities | (959,610) | (1,256,317) | ||||||
Shareholder's Equity | 3,007,857 | 4,353,572 | ||||||
Represented By: | ||||||||
Issued, subscribed and paid-up capital | 749,276 | 605,476 | ||||||
Reserves | 2,258,851 | 3,604,295 | ||||||
3,008,127 | 4,209,771 | |||||||
Corporate Briefing
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OPERATIONAL HIGHLIGHTS OF SEASON 2024-25
2024-25 | 2023-24 | Variance | |
Crushing (M. Tons) | 710,803 | 902,931 | -21% |
Sucrose Recovery (%)
10.22
10.79
-5%
Sugar Production (M. Tons)
72,643
97,384
-25%
Molasses Production (M. Tons)
32,888
40,255
-18%
Bagasse Saving (M. Tons)
44,455
73,048
-39%
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Corporate Briefing
FINANCIAL HIGHLIGHTS - YEAR ENDED SEP'2024
Income Statement | Rupees in thousands | |||||
Sales & Profitability | 2024 | 2023 | ||||
10,988,868 | ||||||
Turnover-net | 10,983,532 | |||||
Cost of Sales | 10,093,839 | 8,619,570 | ||||
Gross Profit | 895,029 | 2,363,963 | ||||
Operating Profit | 1,230,092 | 2,164,221 | ||||
(Loss) / profit before tax & levies | (675,277) | 2,280,535 | ||||
(Loss) / profit for the year after tax & levies | (799,027) | 1,442,950 | ||||
Financial Position | ||||||
Fixed Assets - net | 2,485,982 | |||||
Financial Asset | 2,463,671 | |||||
Other non-current assets | A | 1,129,853 | 1,807,134 | |||
3,615,835 | 4,270,804 | |||||
Current Assets | 4,188,425 | 2,332,686 | ||||
Current Liabilities | (3,978,359) | (1,456,325) | ||||
Working Capital | B | 210,066 | 876,361 | |||
Capital Employed | A+B | 3,825,901 | 5,147,166 | |||
Less: Non-Current Liabilities | (1,045,163) | (1,267,715) | ||||
Shareholder's Equity | 2,780,738 | 3,879,450 | ||||
Represented By: | 749,276 | |||||
Issued, subscribed and paid-up capital | 749,276 | |||||
Reserves | 2,031,462 | 3,130,174 | ||||
2,780,738 | 3,879,450 |
Corporate Briefing
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LAST TEN YEARS' PROFITABILITY VS PAYOUT RATIO
Financial
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Profit
(Sugar
Division)
336,066
425,548
31,563
72,882
78,944
(29,893)
(85,414)
(150,776)
531,158
(146,746)
Rupees in thousand
Share of | Profit for | Cash | Stock | Total | Payout |
profit from | the year | Dividend | Dividend | Payout | as % of |
associates | Rs. | Rs. | Profits | ||
93,969 | 430,034 | 160,156 | - | 160,156 | 37.2% |
116,259 | 541,807 | 224,220 | - | 224,220 | 41.4% |
100,113 | 131,675 | 88,086 | - | 88,086 | 66.9% |
340,016 | 412,898 | 96,094 | 48,047 | 144,141 | 34.9% |
324,890 | 403,834 | 127,084 | 97,615 | 224,699 | 55.6% |
76,920 | 47,027 | 58,247 | 23,299 | 81,546 | 173.4% |
61,598 | (23,816) | 73,391 | 48,927 | 122,319 | N/A |
440,138 | 289,361 | 40,365 | 142,960 | 183,325 | 63.4% |
911,791 | 1,442,949 | 551,740 | 75,684 | 627,425 | 43.5% |
(652,281) | (799,027) | 74,928 | - | 74,928 | N/A |
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Corporate Briefing
1,500,000
1,000,000
500,000
Profit vs Total Payout Ratio
-
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
(500,000)
(1,000,000)
Profit | Total Payouts |
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Corporate Briefing
SIX YEARS' REVIEW AT A GLANCE
2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
Operational Trends | ||||||
Sugarcane crushed - M. Tons | 902,931 | 804,872 | 856,944 | 682,253 | 654,339 | 702,259 |
Sugar produced - M. Tons | 97,384 | 85,796 | 95,642 | 73,092 | 72,821 | 80,332 |
Sucrose recovery - % | 10.79 | 10.66 | 11.16 | 10.72 | 11.13 | 11.44 |
Balance Sheet | Rupees in million | |||||
Share capital | 749.28 | 749.28 | 605.48 | 489.27 | 465.97 | 405.20 |
Reserves | 2,031.46 | 3,130.17 | 2,144.17 | 2,006.55 | 2,141.54 | 2,009.70 |
Shareholders' equity | 2,780.74 | 3,879.45 | 2,749.65 | 2,495.82 | 2,607.51 | 2,414.90 |
Non-current liabilities | 1,045.16 | 1,267.72 | 879.45 | 1,278.32 | 1,482.07 | 1,103.44 |
Current liabilities | 3,978.36 | 1,456.32 | 2,966.79 | 2,118.64 | 1,111.14 | 3,445.11 |
Total Equity & Liabilities | 7,804.26 | 6,603.49 | 6,595.89 | 5,892.78 | 5,200.72 | 6,963.45 |
Fixed Assets | 2,485.98 | 2,463.67 | 2,497.62 | 2,424.39 | 2,271.66 | 2,190.68 |
Non-current assets | 1,129.85 | 1,807.13 | 1,330.51 | 1,257.28 | 1,514.08 | 1,363.24 |
Current assets | 4,188.43 | 2,332.69 | 2,767.76 | 2,211.11 | 1,414.98 | 3,409.53 |
Total assets | 7,804.26 | 6,603.49 | 6,595.89 | 5,892.78 | 5,200.72 | 6,963.45 |
Financial Trends | Rupees in million | |||||
Turnover | 10,988.87 | 10,983.53 | 6,898.03 | 6,063.54 | 6,424.68 | 5,311.77 |
Gross profit | 895.03 | 2,363.96 | 807.41 | 636.86 | 465.14 | 820.31 |
Operating profit | 1,230.09 | 2,164.22 | 524.40 | 416.19 | 454.59 | 572.03 |
EBITDA | 796.26 | 3,107.49 | 1,108.41 | 488.51 | 682.79 | 1,067.79 |
EBIT | 577.81 | 2,915.83 | 920.06 | 282.44 | 504.97 | 896.92 |
Pre-tax profit | (675.28) | 2,280.53 | 393.74 | 17.89 | 162.65 | 512.15 |
After-tax profit / (loss) | (799.03) | 1,442.95 | 289.36 | (23.82) | 47.03 | 403.83 |
Capital Expenditure | 164.04 | 165.69 | 410.00 | 28.54 | 267.65 | 178.29 |
Corporate Briefing
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