Sugar & Allied Industries - UNITED SUGAR MILLS LIMITED - Half Year Ended March 31 2007

United Sugar Mills Ltd is a public limited company incorporated in Pakistan on February 5, 1970 having its registered office located at 17 Abid Majeed Road Lahore Cantt. Its shares are listed on the Karachi Stock Exchange and on 23/07/07, the closing price of its share was quoted at Rs 185.05 per share.
According to the note annexed to the accounts under review, on November 18, 2005, over 97% ordinary shares of the company were acquired by JDW Sugar Mills Ltd along with its management. These ordinary shares were purchased from the sponsoring directors as well as the minority shareholders of the company at a price of Rs 333.33 per share after complying with all the necessary legal formalities.
During the half year ended on March 31, 2007, the company posted sales at Rs 445.11 million as compared to Rs 582 million posted in the same period last year (SPLY), registering 23.5% decline.
However gross profit in the sum of Rs 120.52 million was 12.1% higher as compared to Rs 107.36 million in the same period last year. Gross profit to sales ratio (Gross Margin) improved significantly as there was better sucrose recovery and higher sugar production. Gross margin, during this period was at 27.08% as compared to 18.45% in the SPLY.
The directors reported that the company achieved highest ever sucrose recovery and sugar production since its inception in 1971. It was mainly because of additional investment of more than Rs 200 million injected last year to improve efficiency of the plant and machinery and ensure adequate availability of sugarcane throughout the season.
By achieving 10.22% sucrose recovery the company became second best mill in the sugar industry. During the period, the company earned net profit after taxation at Rs 28.19 million (SPLY: Rs 25.19 million) by selling 22% of its total sugar production for the crushing season 2006-07 as compared to 40% in the corresponding period last season.

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Performance Statistics                      (Mln Rs)

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Balance Sheet                                -As At-

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                              March 31  September 30

                                  2007          2006

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                            Un-audited       Audited

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Share Capital Paid-up:           30.00         30.00

Accumulated (Loss):           (252.13)      (280.32)

Shareholders Equity:          (222.13)      (250.32)

Deferred Liabilities:            52.54         36.50

Current Liabilities:          1,913.28        737.62

Fixed Assets Tangible:          425.70        348.79

L.T. Investments:                 0.45          0.45

L.T. Deposits-

 Against Utilities:               0.43          0.43

Current Assets:               1,317.11        174.13

Total Assets:                 1,743.69        523.80

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Profit & Loss A/c for Half Year Ended     -March 31-

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                                  2007          2006

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Sales-Net:                      445.11        582.00

Gross Profit:                   120.52        107.36

Distribution (Cost):            (1.08)        (0.71)

Administrative Expenses:       (23.94)        (3.21)

Other Operating Income:           5.30          0.03

Operating Profit:               100.79        103.46

Finance (Cost):                (52.72)       (53.85)

Profit Before Tax:               44.76         46.21

Profit After Tax:                28.19         25.19

Earning Per Share (Rs):           9.40          8.40

Share Price (Rs) on 23/07/07:   185.05             -

Price/Earning Ratio:             19.69             -

Debt/Equity Ratio:                 (-)           (-)

Current Ratio:                    0.68          0.24

Gross Profit Margin (%):         27.08         18.45

Net Profit Margin (%):            6.33          4.33

R.O.A. (%):                       1.62          4.80

R.O.E. (%):                        (-)           (-)

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