Al-Abbas Sugar Mills Limited (‘Al-Abbas Sugar’ or ‘the Company’) is a public listed company, incorporated in May 1991.

The company began its journey with the manufacturing and sale of white refined sugar, commencing commercial operations in December 1993. Expanding its business portfolio, the company established its first distillery plant (Unit I) in 2000, followed by a second unit (Unit II) in 2004, enhancing its ethanol production capacity. To further strengthen its supply chain and operational efficiency, the company later developed storage terminals, ensuring better inventory management and logistical support.

The Company's has a rated crushing capacity of 8,500 TCD and the distilleries have a combined capacity to produce 170,000 liters of Ethanol per day (Unit I: 85,000 Liters; Unit II: 85,000 Liters). The Company has diversified businesses and operates in two different locations at Mirpurkhas and Dhabeji in Sindh. The businesses include a) Sugar, b) Ethanol c) Chemicals and Alloys, and d) Tank Terminal. In terms of production performance, Al-Abbas sugar recorded sugar production of 38,784 MT during the fiscal year MY25. This marks a decrease of ~22.7% compared to the 50,184 MT produced in MY24, demonstrating a steady improvement in operational efficiency and output. Additionally, the sugar recovery rate, which measures the amount of sugar extracted from the sugar cane, remains stable at ~9.62% in MY25. The ethanol segment recorded the production of 40,126 MT ~3.6% lower than 43,623 MT as compared to the previous year. The Company also operates 12 tanks, having a combined storage capacity of 22,850 MT per month to store ethanol and petroleum products.

The company’s shareholding structure is highly concentrated, with associated companies and related parties holding ~33.83%, and directors and their families owning ~24.37%. Together, this gives insiders majority control, enabling strong strategic alignment but limiting minority shareholder influence. Institutional ownership remains low, with mutual funds and other financial institutions at ~4.25%, indicating limited external participation. The general public holds ~16.09%, entirely local, with no foreign investment, suggesting low international engagement. Additionally, shareholders with ~5% or more control ~83.77% of shares, reinforcing the concentrated ownership structure. While this supports stability, it may constrain liquidity and raise governance considerations. Overall, the structure reflects strong insider control with limited institutional and foreign investor presence.

The Company’s two major shareholders have been engaged in a longstanding dispute since 2013. Legal proceedings are ongoing in the Sindh High Court, and a final decision is still pending. The management, however, is confident that the outcome will be favorable to the Company, and the Company’s stability is expected to remain strong moving forward

The sponsors, Haji Ghani Group, have a strong and established business track record. Mr. Haji Abdul Ghani brings extensive experience, having chaired the Boards of various brokerage firms and previously served as the Vice Chairman of the Pakistan Stock Exchange. Additionally, the Haji Ghani Group has a diversified business background, with prior involvement in the cement sector, further demonstrating its expertise in managing and expanding industrial ventures.

The Company is the flagship entity of Haji Ghani Group and has maintained stable profits over the years, supported by a sufficient equity base of PKR 8.4bln as at Sep-25. Moreover, the group 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 Board of Directors (BoD) comprises nine members, including one Executive Director, three Non-Executive Directors, three Independent Directors, and two Female Directors, reflecting a balanced approach to diversity and corporate governance. The BoD is chaired by a Non-Executive Director and is significantly influenced by the Haji Ghani Family, which maintains representation through five Nominee Directors.

The Board of Directors (BoD) comprises highly experienced members with strong professional backgrounds, specializing in financial services as well as the sugar and ethanol industries. Their collective expertise enhances strategic decision-making and corporate governance. Mr. Muhammad Suleman Chawla currently serves as the Chairman of the BoD. He ventured into business by joining Barque Corporation, a leading FMCG distribution company in Pakistan, whose success is attributed to his dedication, passion, and leadership. Suleman has actively contributed to Pakistan’s business community, serving on the Executive Committee of the Karachi Chamber of Commerce & Industry (2005), as President of the SITE Association of Industries (2020), Senior Vice President of the Lasbella Chamber of Commerce & Industry, and currently as Senior Vice President of the Federation of Pakistan Chambers of Commerce and Industry. His expertise in international trade, industry, finance, and the economy, combined with his commitment to national and humanitarian causes, has earned him numerous accolades. 

The Board of Directors (BoD) is supported by three key committees: the Audit Committee, the HR & Remuneration Committee, and the Risk Management Committee. Mr. Haroon Askari, an Independent Director, chairs both the Audit and HR & Remuneration Committees, ensuring transparency and effective governance. Meanwhile, the Risk Management Committee is chaired by Mr. Salman Hussain Chawala, also an Independent Director, overseeing risk assessment and mitigation strategies to safeguard the company's financial and operational stability.

BDO Ebrahim & Co. Chartered Accountants as the company's external auditors. The firm is classified in category ‘A’ of SBP and have a satisfactory QCR rating. They have expressed an unqualified opinion on the financial statements for the year ended 30th September 2025. 

Al-Abbas Sugar has a well-defined organizational structure, ensuring efficient management and clear reporting lines. Department heads report directly to the CEO, facilitating streamlined decision-making and accountability. The company operates through five key departments: Finance, Administration & Human Resources, Procurement & Purchase, Audit, and Plant Operations, each playing a crucial role in maintaining operational efficiency and business growth.

Mr. Asim Ghani has been serving as the CEO since December 2017. Prior to this role, he oversaw the operational aspects of Al-Abbas as an Executive Director and has been associated with the company for 23 years. Having served in high-ranking capacities such as Senior Vice President of the FPCCI and Chairman of both the Pakistan Ethanol Manufacturers and Sugar Mills Associations, he has been instrumental in shaping national industrial policy. His extensive executive experience, including leadership roles at Javedan Cement and Thatta Cement, underscores a career dedicated to driving economic growth and fostering international business relations. 

The long association of the Company’s senior management ensures consistency in overall policies and strengthens the management structure. However, establishement of management committees will further enhance the management profile of the Company. 

The Company has deployed Oracle R-12 as its ERP system, enabling it to generate various reports for effective management and decision-making.

The Internal Audit Department upholds compliance and operational efficiency by conducting quarterly evaluations to assess risks, controls, and adherence to policies. The findings are reported to the Audit Committee, ensuring transparency, accountability, and continuous improvement in governance and internal processes.

Pakistan’s sugar industry stands as the second-largest agro-based sector in the country, comprising approximately 90 mills with an annual crushing capacity of 80-90 million MT. The national sugar crop for MY 2024-25 was estimated at approximately 5.83 million metric tons against domestic consumption of approximately 6.4–6.5 million metric tons, necessitating TCP imports of approximately 0.30 million MT to bridge the supply gap. Looking ahead to Season 2025-26, the national crop is estimated between 6.6–7.2 million metric tons, with early recovery data pointing to sucrose recovery rates trending higher by 0.5–1.0 percentage points year-on-year — a development that could yield incremental sugar output of 5–10% on equivalent cane crushed. However, the larger crop is expected to keep sugarcane and sugar prices under pressure, presenting challenges for the Company as it navigates a long sugar market.

Given the presence of numerous participants in the industry, individual companies hold relatively modest market shares. Al-Abbas Sugar notably contributes approximately 0.7% to Pakistan’s total sugar production and around 6% to the nation’s overall ethanol production, reflecting its valuable role within the sector.

The Company generates revenue by manufacturing and selling sugar (~47.7%) and ethanol (~51.9%). Ethanol remains predominantly export-driven (~96%), while sugar is largely a domestic play (~92% local, ~8% export). During MY25, the Company's total topline decreased by ~5.4%, reporting to PKR 15.6 billion compared to PKR 16.5 billion in the corresponding period of the previous year, MY24. Out of this revenue from sugar recorded at PKR 7.4bln (MY24: PKR 4.8bln) and revenue from ethanol recorded at PKR 8.1bln (MY24: PKR 11.4bln). Looking ahead, revenue stability is anticipated, underpinned by resilient local market demand for sugar.

The Company's profitability margins reflect a decline during MY25, followed by marginal moderation in sales. The gross profit margin fell to ~17.6% (MY24: ~21.9%). This decline was primarily driven by a substantial increase in the procurement cost of sugarcane, which had a direct negative impact on the cost of production. Higher sugarcane costs reduced the overall margin from the core business operations, making it more difficult to sustain profitability at the same levels as in the previous year. This translated into a shrinking Operating profit margin (~12.1%, down from ~13.4%). Moreover, during MY25, the net margin contracted to 8.1% from ~9.4% as the profit after tax of the Company clocked at PKR 1,270mln (MY24: PKR 1,551mln). 

Going forward, the Company's performance will largely depend on the sugar division, and its industry dynamics. Meanwhile, the Company is expected to continue its stable performance in the ethanol division.

The Company’s working capital management has shown signs of operational inefficiencies during MY25. Inventories witnessed a decrease, averaging 87days compared to 98 days in MY24. Trade receivables marginally remain the same at 9 days on average, underscoring the Company’s efficient receivables collection practices. However, trade payables averaged 25 days, from 24 days in MY24, indicating adequate utilization of supplier credit. The Gross Working Capital cycle decreased to 95 days (MY24: 108 days), resulting in a Net Working Capital cycle of 70 days compared to 84 days in the previous period. Leverage indicators present a stable picture, with Short-Term Total Leverage remaining neutral at 56.9% (MY24: 62%).  Going forward, the working capital cycle is expected to improve due to the efficient selling of stock through export.

The Company's coverage indicators reflected a strong performance during MY25, driven by increased FCFO and a decline in finance cost. The Company's FCFO clocked at PKR 2.1bln, (MY24: PKR 1.9bln). The EBITDA-to-Finance Cost ratio has increased to 11.9x (MY24: 4.8x), signaling a reduced capacity to cover finance costs through operational earnings. Similarly, the FCFO-to-Finance Cost ratio has improved to 9.5x from 3.7x. Going forward, the coverages are expected to remain allign with the current trend. 

Al-Abbas Sugar Mills maintains a low-leveraged capital structure, which is a good sign in comparison to other industry players, with a debt-to-equity ratio standing at ~26.9% in MY25 (MY24: ~24.4%). The Company's debt consists of short-term borrowings, constituting ~99%, and long term borrowing, constituting lease liabilities of ~1% of the total debt. In MY25, the total debt of the Company stood at PKR 3,094mln due to increased utilization for running finance for working capital purposes and repayment of loan. The equity base of the Company stood at ~PKR 8,395mln (MY24: ~PKR 8,001mln).