Al-Noor Sugar Mills’ losses triple up as company fails to control growing costs

December 28, 2018 (MLN): Al-Noor Sugar Mills Limited has stated losses amounting to Rs. 120 million for the year ended 30th September 2018, an enormous jump from last year’s losses of Rs. 30 million. The poor outcome can be attributed to failure on company’s part to control both direct and indirect costs.

While the top-line earning of the company showed decent growth of 31%, the cost of sales increased by a relatively bigger margin, causing the gross profit to become negative.

Even the presence of non-core income streams such as other income and Share of profits in associates couldn’t pull the company out from abyss of losses.

The company reported loss per share, both basic and diluted, at Rs. 5.9 for the year ended September 2018, triple times more than that of last year.

Profit and loss account for the year ended September 30th 2018 (Rupees'000)

 

Sep-18

Sep-17

% Change

Sale

9,080,899

6,895,714

31.69%

Cost of sales

-9,733,468

-6,190,599

57.23%

Gross (loss)/Profit

-652,569

705,115

 

Profit from trading activities

56

810

-93.09%

Distribution cost

-198,084

-66,083

199.75%

Administrative cost

-509,257

-449,015

13.42%

Other operating cost

-18,513

-10,050

84.21%

Other income

1,351,197

19,376

 

Finance cost

-309,881

-327,810

-5.47%

Share of profit in associate

93,705

824

 

(Loss) before taxation

-243,346

-126,833

91.86%

Taxation

122,512

96,514

26.94%

(Loss) after taxation

-120,834

-30,319

298.54%

(Loss) per share — Basic and diluted (Rupees)

-5.9

-1.48

298.65%

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Posted on: 2018-12-28T16:26:00+05:00

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