Profile
Legal Structure
Noon Sugar Mills was incorporated in 1964 as a public limited Company, with its shares listed on the Pakistan
Stock Exchange (PSX). Primary business of the Company involves the manufacture and sale of white refined sugar
along with spirits.
Background
The Company commenced commercial operations in 1966 with a daily crushing capacity of 1,500MT of sugarcane
per day. The Company upgraded its capacity twice since inception. The first came in 2002, which brought
crushing capacity to 4,000 TCD and the second was in 2007, increasing it to 10,000 TCD. The levels have increased to 19,000 TCD today. Additionally, the Company installed its distillery plant in 1986 with the capacity to produce
50,000 liters per day. Since then, the Company has enhanced production capacity, which currently stands at
130,000 liters per day, accounting for the recent expansion of 50,000 liters made during MY19.
Operations
Noon Sugar Mills has its registered office located in New Garden Town, Lahore, whereas, the mills are located in
Sargodha. The Company has two reportable segments, namely, sugar and distillery. Additionally, the Company also
operates a power plant with a rated capacity of 18.8MW. Power is used for production. During MY25, Sugar production for MY25 stood at 63,810 metric tons, lower
than 73,597 metric tons in MY24. Sucrose recovery decreased from 10.30% to 10% in MY25. Ethanol production decreased from 13,960 MT in MY24 to 12,885 MT in MY25.
Ownership
Ownership Structure
Majority of the shareholding lies with the Noon family, who holds a 75.03% stake in the Company. The family holds 36.32% directly through Ms. Tahia Noon, 23.66% through Mr. Adnan, 11.89% through Mr. Taimur Hayat Noon and through Mr. Saif Ullah Noon 3.16%. Remaining shareholding
is split between financial institutions and the general public.
Stability
The Company's ownership structure is expected to remain stable, with no major changes anticipated in the
foreseeable future. As part of a long-term succession plan, the sponsors are actively involving the next generation
in the business to ensure continuity and sustained growth.
Business Acumen
The Company is a part of Noon Group which comprises a total of four companies. With the exception of Noon Sugar
Mills, other group companies are involved trading services, with no significant asset base. The group previously
used to own and operate Noon Pakistan, most famous for its brand ‘nurpur’. However, major shareholding of the
Company was sold off to Fauji Foods Limited (FFL).
Financial Strength
With the exception of Noon Sugar Mills, majority of the companies are involved in trading which provide indenting
services relating to the textile industry. Noon Sugar Mills is seen as the main Company in the group since other
companies do not generate sufficient revenues and have an insignificant asset base.
Governance
Board Structure
The Company’s Board of Directors consists of seven members, including, the Chairman, two executive directors,
two non-executive directors and two independent directors.
Members’ Profile
Mr. K. Iqbal Talib, Chairman of the Board, has over 50 years of technical and management experience in the sugar
industry. He was previously the Chief Operating Officer and holds a Master’s degree in Chemistry from Aligarh
Muslim University. In addition to being the Chairman of the Board, Mr. Talib was previously the President of Pakistan Society of Sugar Technologists and Chairman of Pakistan Ethanol Manufactures Association. Further, he
is part of the Board in other group companies.
Board Effectiveness
The Company has three Board committees in place, namely, Human Resources and Remuneration Committee,
Technical Committee and Audit Committee. All committees must comprise at least three members of the board.
Meetings are called when deemed fit, however, the Audit Committee must meet at least once each quarter.
Financial Transparency
Noon Sugar Mills external auditors, Shinewing Hameed Chaudri Company, Chartered Accountants, have expressed
an unqualified opinion on the Financial Statements of the Company ending in September, 2025. The firm has been
QCR rated by ICAP and are in Category 'B' of SBP panel.
Management
Organizational Structure
Noon Sugar Mills has a well-defined organizational structure that has various layers of management. Company has well-defined human resource organogram. All the departments are well-classified and led by professionals.
Management Team
The management team of Noon Sugar Mills comprises seasoned professionals with diverse expertise across
various domains. The Chief Executive Officer, Lt. Col. (R) Abdul Khaliq Khan, brings 25 years of military experience,
encompassing operations, administration, human resource management, and strategic assessment. His leadership
acumen has been further enhanced through participation in various executive seminars and professional
development courses. Supporting him in key operational and financial functions are Mr. Syed Adeel Ahmed, Chief
Operating Officer, and Mr. Syed Anees Hassan, Chief Financial Officer, who contribute their extensive industry
knowledge and expertise to the organization's strategic and operational decision-making processes.
Effectiveness
The effectiveness of the management team is underscored by their extensive professional qualifications and decades of industry experience, which have been instrumental in streamlining operations and maintaining a resilient market position. Their insights are clearly reflected in the Company’s well-managed operational framework. While the formal establishment of specialized management committees remains a future opportunity to further institutionalize governance, the current leadership’s hands-on expertise continues to provide the strategic foresight necessary to drive sustainable growth.
MIS
The management has implemented an Enterprise Resource Planning (ERP) system, facilitating the integration of
core business functions, including cane accounting, general ledger management, and human resource operations.
This system enhances data centralization, process automation, and real-time reporting, thereby improving
operational efficiency, financial control, and decision-making capabilities across the organization.
Control Environment
The Company has established an internal audit department to enhance financial oversight and compliance. All
disbursements require prior approval from the internal audit function, ensuring robust internal controls.
Departments are mandated to submit requisition forms, which must be reviewed and authorized by the internal
audit department before processing. The Chief Financial Officer (CFO) and Chief Operating Officer (COO) jointly
serve as the Company's authorized signatories, reinforcing financial governance. Furthermore, the Company
utilizes internally developed modules for monitoring operational performance. However, opportunities remain for
further enhancement, as there is a need to strengthen and refine the existing control framework to optimize risk
management and operational efficiency.
Business Risk
Industry Dynamics
During 2024–25, Pakistan’s sugar industry operated without a provincial support price for sugarcane in line with conditionalities linked to the International Monetary Fund, compared to PKR 400 per maund in 2023–24, shifting market dynamics toward supply–demand fundamentals, reducing total production by 14.33% to 5.86 million tonnes, with Sindh’s output falling 19.80% to 1.62 million tonnes due to heatwaves, erratic weather, pest attacks, and lower recovery rates. Sugar production increased to 6.66 million tonnes in MY25 from 5.8 million tonnes in MY24, supported by improved sugarcane availability and timely crushing. Carryover stocks of 0.766 million tonnes as of 1 December 2024 ensured adequate domestic supply, yet prices rose in the second half of the season, prompting the federal government to approve 500,000 tonnes of imports through the Trading Corporation of Pa-kistan, of which 306,737 tonnes were imported to stabilize the market. A nearly 50% reduction in the policy rate also eased financing costs for mills. Looking ahead, the International Sugar Organization projects global production of 180–189 million tonnes in 2025–26 with relatively subdued prices amid moderate demand growth, while domestically the industry is expected to record moderate growth sup-ported by improved sugarcane availability, better recovery, timely crushing, adequate supplies, and softer international prices, enabling more efficient operations despite the absence of a government support price.
Relative Position
Noon Sugar contributed ~ 1.1% in the overall sugar production of the country making it one of the leading sugar
mills in Punjab region.
Revenues
During MY25, the Company’s revenue increased by approximately 3.7% to reach PKR 11,744 million (MY24: PKR 11,326 million), with the primary contributions stemming from the Sugar (76%) and Ethanol (24%) segments. This growth momentum continued into 3MMY26, where revenue surged to PKR 5.6 billion compared to PKR 3.1 billion in the same period last year; moving forward, management is focused on driving revenue growth and rebounding margins within the Distillery segment, which is projected to contribute significantly in company's total gross profit.
Margins
During MY25, the gross margin (MY25: 12.5% ; MY24: 10%) and net profit margin (MY25: 5.7% ; MY24: -5.5%) both improved. The company’s financial performance during the first three months of marketing year 2026 (3MMY26) demonstrated a notable improvement compared to the corresponding period last year (3MMY25), primarily driven by higher domestic sugar prices relative to input costs. Despite an increase in raw material expenses, improved pricing dynamics supported a significant expansion in gross profitability, with the gross profit margin rising from 10% to 12.5%. Operational performance also strengthened, reflected in the operating profit margin improving from 4.7% to 7.6%, indicating enhanced cost absorption and better efficiency levels. As a result, the net profit margin turned positive at 5.7% in 3MMY26, compared to a negative 5.5% in 3MMY25, marking a substantial turnaround in bottom-line performance. Additionally, the company’s effective management of finance costs contributed meaningfully to overall profitability, with finance expenses declining from approximately PKR 154 million to PKR 129 million during the period.
Sustainability
The Company stands to benefit from the combination of high sugar prices in the global market and strong demand
for ethanol in the export market. Nonetheless, the Company is vulnerable to fluctuations and consequent
difficulties in the sugar industry, such as low prices for domestic sugar.
Financial Risk
Working capital
During MY25, the company improved its working capital efficiency, with inventory days declining from 93 to 83 and trade receivable days remained the same at 13. Trade payable days also shortened from 46 to 37, resulting in a reduction of net working capital days from 60 to 59. During the first three months of marketing year 2026 (3MMY26), the company strengthened its working capital management, resulting in an improved liquidity position. This improvement was primarily supported by a more efficient operating cycle, as reflected in a reduction in inventory days from 94 to 28 and a decline in trade receivable days from 10 to 5. Consequently, gross working capital days improved from 104 to 33 days, indicating faster inventory turnover and more efficient receivables collection. At the same time, trade payable days decreased from 42 to 19. This suggests that the company extended its payment cycle to suppliers, thereby easing short-term cash outflows and supporting liquidity. As a result of these movements, net working capital days decreased (3MMY26: 14 days; 3MMY25: 62 days), reflecting a more efficient working capital cycle during the period.
Coverages
During MY25, free cash flow increased from PKR 588 million to PKR 1,100 million resulting in debt payback period increased from -4.8x to 4.2x. The Company’s financial profile weakened during 3MMY26, primarily reflected in a decline in free cash flow from PKR 588 million to PKR 352 million. The reduction in internally generated cash did not have a major impact on debt service coverage ratio as it increased from 0.7x to 2.4x.
Capitalization
In MY25, the Company’s debt-to-equity ratio improved from 79.2% to 67.4%, a trend that continued into 3MMY26 as the ratio further declined from 78.2% to 70.3% (SPLY). Concurrently, Noon Sugar Mills reduced its total borrowings from approximately PKR 5.3 billion to PKR 5.1 billion, showcasing a strategic shift toward prudent balance sheet management. While leverage remains relatively elevated, the projected figures and the ongoing refinement of the debt mix indicate a clear commitment by management to de-leverage the balance sheet, fostering a more sustainable and resilient financing structure for future operations.
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