Jauharabad Sugar Mills Limited ('Jauharabad Sugar' or 'the Company') was incorporated as a public limited company and is listed on the Pakistan Stock Exchange since 1973.

The Company was established on build, operate and transfer (BOT) contract by Pakistan Industrial Development Corporation (PIDC) in collaboration with Thal Development Authority (TDA). In 1955, Saigol Group acquired the contract and named the Company, Kohinoor Sugar Mills Limited. In Oct 2013, Cane Processing (Pvt.) Ltd. acquired major stakes (~64%) of Kohinoor Sugar Mills and renamed it to Jauharabad Sugar.

Jauharabad Sugar is engaged in the manufacturing and sale of sugar along with its by-products, including molasses, bagasse, and mud. The Company operates two sugarcane crushing units, Line-I and Line-II, with a combined crushing capacity of 12,500 MT per day. Line-I, with a capacity of 3,000 MT per day, is currently non-operational. Line-II has an enhanced crushing capacity of 9,500 MT per day, increased from 7,500 MT per day. During MY25, the Company produced 63,028 MT of sugar, reflecting a slight decline of approximately 2.85% compared to 64,874 MT produced in MY24. Despite the marginal decrease in production, sugar recovery improved to 10.10% from 9.86%, registering an increase of 2.47%. The improvement in recovery rate indicates enhanced milling efficiency, better cane quality during certain crushing phases, and strengthened operational controls at the plant level. Molasses production declined by 12.07% to 23,258 MT, in line with the lower crushing volume. Furthermore, molasses recovery decreased to 3.73% from 4.02%, reflecting a decline of 7.24%, primarily due to variations in cane quality and sucrose content during the season. The Company operated for 110 crushing days during MY25, reflecting an adequate operational cycle. However, despite the extended working period, total sugarcane crushed decreased by 5.21% to 623,733 MT compared to 657,997 MT in the previous year. Overall, the sugar recovery rate remained stable at approximately 10.10% (MY24: 9.86%), with the improvement largely attributable to favorable moisture levels in the sugarcane crop, which supported improved extraction efficiency and higher yield from the raw material.

The Company’s majority ownership rests with Cane Processing, a holding company that holds 64% of the shares, while 9% is owned by individuals from the Latif family. Institutional investors, including NIT and ICP, collectively hold 3% of the shares. The remaining 35% constitutes the Company’s free float, allowing for public trading and investor participation. Cane Processing, the principal shareholder, is predominantly controlled by Mrs. Ghazala Amjad, who owns a 99% stake, giving her significant influence over the Company’s strategic direction and decision-making.

The presence of a holding Company enhances stability by providing long-term strategic direction and financial security. Transferring the entire family stake to the holding company would further consolidate ownership, streamline decision-making, and reinforce the company's structural integrity, ensuring sustained growth and operational efficiency.

The sponsoring family has a long-standing history in the business world. Mother of Mr. Ahsan Latif (JSML’s Chief Operating Officer), Mrs. Ghazala Amjad hails from the sponsoring family of Kohat Cement. Mr. Ahmad Latif, younger brother of Mr. Ahsan Latif, owns two LPG businesses – named Synergy and Awami.

The company is primarily owned by Cane Processing, which serves as a strong financial backbone. The sponsors possess sufficient financial strength to support the Company in times of distress, ensuring stability, continuity, and resilience against market fluctuations.

The Company's Board comprises two Executive Directors, three Independent Directors, and two Non-Executive Directors nominated by Cane Processing. The Board is chaired by an Independent Director, ensuring balanced governance and oversight. Its composition, which emphasizes independence and diverse expertise, strengthens decision-making and enhances strategic direction.

The Board's Chairman, Mr. M. Aamir Beg is associated with the Company for 7 years and has a thirty seven years of practical experience in the fields of Marketing and new projects development. He is a qualified M.B.A from Liverpool University, England in 1981. Mr. Ghias-ul-Hasan, Non-executive Director/ CPL Nominee, is an entrepreneur with forty four years’ experience, has led number of businesses in Pakistan including Manufacturing, Trading and Advertising. His work experience and Managerial ability is one of the key success factors for the Company. The Board's experience and skillset is the key success factors for the Company.

During MY25, the Board met four times, with majority attendance, maintaining well documented minutes. The Board has four sub committees: Audit Committee (met 4 times during MY25), Nomination Committee (met 1 time during MY25), Risk Management Committee (met once during MY25) and HR & Remuneration Committee (met once during MY25).

External auditors, UHY Hassan Naeem & Company, Chartered Accountants, have expressed an unqualified opinion on the financial statements of MY25. The firm has been QCR rated and is in Category 'A' of SBP panel.

The Company operates through eight key divisions: Mill, Operations, Power, Cane, Marketing, Human Resources, Internal Audit, and Finance. All functional heads report directly to the Chief Operating Officer (COO), who, in turn, reports to the Chief Executive Officer (CEO). However, to ensure independent oversight, the Head of Internal Audit reports functionally to the Board Audit Committee while maintaining an administrative reporting line to the CEO. This structure promotes operational efficiency, accountability, and robust internal controls.

Mr. Syed Anwar Hussain Shahid, the CEO, a renowned Sugar Technologist having a vast experience of forty one years in the erection and commissioning sugar plants, Technical Supervision indecision about plant expansion, equipment selection and project exposure. He is associated with the Company since 2021. He is responsible for overseeing technical matters of JSML sugar operations. Mr. Ahsan Latif, the COO, has work experience of 24 years and is associated with the Company since 2013. The management team has substantial experience in the relevant domain.

The Company’s management ensures operational effectiveness through a Management Committee, which includes the heads of all divisions. Daily coordination meetings are conducted to facilitate communication, align strategies, and address key operational matters. The minutes of these meetings are systematically documented and circulated to ensure accountability, track progress, and follow up on action items, fostering a structured and efficient decision-making process.

The Company uses ERP system which is updated on real time basis and generates 15 reports to assist the top management in monitoring and evaluating the performance.

The Internal Audit function is co-sourced with KPMG, ensuring a robust and independent review process. This function plays a vital role in providing support, guidance, and oversight for the internally established Standard Operating Procedures (SOPs). Additionally, KPMG conducts gap analyses of existing systems and policies, identifying areas for improvement and ensuring compliance with best practices, thereby strengthening the company’s internal controls and risk management framework.

The sugar industry in Pakistan operates within a competitive market structure, contributing approximately 0.8% to the nominal GDP and 3.5% to the value added in the agriculture sector as of MY24. Regional dynamics show that production is heavily concentrated in Punjab, which accounted for 68.5% of the province-wide distribution in MY25, followed by Sindh at 24.8% and KPK at 6.7%. The cultivated area for sugarcane remained steady at 1.2 million hectares in MY25 and MY24. Despite the adverse impact of floods, sugar production increased to 6.66 million tonnes in MY25 from 5.8 million tonnes in MY24. The market is dominated by major players, with the JDW Group (combined) holding the largest production share at 11.9% in MY24, followed by Hamza at 6.9% and Tandlianwala (combined) at 5.5%. Local sugar prices have historically been lower than global averages, though they are projected to rise to 450 USD/MT in 3MMY26. Total consumption is steadily growing, reaching an estimated 6.6 million MT in MY25, with per capita consumption at 27.4 kg.

The Company contributed approximately ~0.955% to the total production of sugar produced in Pakistan.

In MY25, the company’s total revenue experienced a notable improvement, rising to PKR 10,727 million from PKR 7,996 million in MY24. This growth was driven by a strong performance in both domestic and international markets; local sales climbed to PKR 10,639 million (up from PKR 7,937 million), while export revenue saw a significant surge to PKR 826 million compared to PKR 242 million in the previous year. In addition to core sugar sales, the company’s revenue stream was supported by its by-products, including molasses, bagasse, and press mud. During MY25, bagasse contributed PKR 178.7 million (MY24: PKR 177.1 million), and mud sales increased to PKR 15.8 million (MY24: PKR 10.9 million). Meanwhile, molasses remained a significant contributor at PKR 944.1 million, despite a slight decrease from the PKR 967.6 million reported in MY24. Looking ahead, overall revenue is expected to remain stable, underpinned by consistent domestic demand for sugar and the steady utilization of these secondary product streams.

The company's profitability indicators showed significant improvement in MY25, with the Gross Profit (GP) margin rising to 13.8% from 12.6% the previous year. This expansion was primarily driven by a 34.2% surge in sales volume, which effectively offset the rise in Cost of Goods Sold (COGS). This positive momentum flowed down to the operating level, where the operating profit margin increased to 10.8% (up from 9.3% in MY24). Most notably, net profit experienced a substantial turnaround, climbing to PKR 250 million from just PKR 2 million in the prior year, resulting in a Net Profit (NP) margin of 2.3%. This bottom-line growth was largely propelled by a reduction in finance costs, which fell to PKR 650 million from PKR 949 million.

The Company operates bagasse-based power plants with a combined generation capacity of 21.44 MW, including a recently installed 14.44 MW unit and an existing 7 MW unit. Going forward, the Company’s performance is expected to remain stable supported by continued improvement in profitability and financial metrics, while maintaining a prudent capital structure.

The company’s working capital management strengthened in MY25, with the gross working capital cycle shortening to 91 days from 102 days. This improvement was primarily due to more efficient inventory management, as inventory days dropped significantly to 69 days from 101 days. Trade receivable days were recorded at 22 days, while trade payable days saw a slight reduction to 11 days (compared to 15 days in MY24). Consequently, the net working capital cycle also improved, decreasing to 79 days from 88 days, reflecting enhanced operational liquidity.

The company’s cash flow generation strengthened during the year, with Free Cash Flow from Operations (FCFO) rising to PKR 1,349 million from PKR 1,054 million in the prior year. This growth, coupled with a significant reduction in finance costs—which fell to PKR 650 million from PKR 949 million—led to a marked improvement in debt servicing capacity. Consequently, the interest coverage ratio climbed to 2.1x (up from 1.1x), while the EBITDA-to-finance cost ratio nearly doubled, reaching 2.4x compared to 1.3x in MY24.

Jauharabad maintains a conservative, low-leveraged capital structure that compares favorably to industry peers, with its debt-to-equity ratio improving to approximately 31.5% in MY25 (down from ~33.9% in MY24). As of MY25, the company’s total debt stood at PKR 2,948 million, primarily comprised of short-term borrowings (66.2%) alongside long-term obligations. Meanwhile, the equity base strengthened significantly, rising to approximately PKR 9,323 million from PKR 7,958 million in the previous year.