Habib adm writeup
Habib-Archer Daniels Midland Co Ltd
(market symbol HAL)
Established as Habib Arkady Limited in 1980, Habib-ADM Limited is a world pioneer in producing starch sugars from rice. Consistent R&D over the years has made the company one of the most diversified producers of starch sugars in the world. Habib-ADM Limited and its subsidiary companies produce and market a wide range of rice based starch sugars and protein concentrates. Popular starch sugars include Clarified Rice Syrups, Brown Rice Syrups, High Fructose Syrup, Rice Syrup Solids, Maltitol Syrup, Sorbitol Syrup, and Maltodextrins - all essential ingredients for the food, confectionery, and pharmaceutical industries.
Looking at overall scenario of sugar sector itself from the past years to the recent market situation we can observe many ups and down and still some new challenges yet to unfold in the near future. Global sugar prices averaged at $24.6 lb during the 1st quarter (Q1) of 2012 and are expected to drop to $20 per lb by Q1 2013.
Sugar prices worldwide are expected to fall around 19%. Sugar industry in Pakistan is also not showing that much profitability as it shown in past years following the global trend except the industries one of the reason for that seems to be the price of input, sugarcane, is set by the provincial government, is increased by 10-15% every year while prices of out put, refined white sugar, is falling because global glut of sugar production. Only sugar companies with ethanol operations are showing some reasonable growth and profitability.
Analysis as per nine month ended 31st March 2013
The gross sales of nine month ended March 2013 shows around 21.12% decline as of the same period in 2012.The gross profit margin decreased from 32.42% to 27.84% around 16% change from last year same period financial results.
The administrative expense increased by 2.21% and distribution expense incremented by 10.57%.The amount of other operating charges decreased by 39%. The
(market symbol HAL)
Established as Habib Arkady Limited in 1980, Habib-ADM Limited is a world pioneer in producing starch sugars from rice. Consistent R&D over the years has made the company one of the most diversified producers of starch sugars in the world. Habib-ADM Limited and its subsidiary companies produce and market a wide range of rice based starch sugars and protein concentrates. Popular starch sugars include Clarified Rice Syrups, Brown Rice Syrups, High Fructose Syrup, Rice Syrup Solids, Maltitol Syrup, Sorbitol Syrup, and Maltodextrins - all essential ingredients for the food, confectionery, and pharmaceutical industries.
Looking at overall scenario of sugar sector itself from the past years to the recent market situation we can observe many ups and down and still some new challenges yet to unfold in the near future. Global sugar prices averaged at $24.6 lb during the 1st quarter (Q1) of 2012 and are expected to drop to $20 per lb by Q1 2013.
Sugar prices worldwide are expected to fall around 19%. Sugar industry in Pakistan is also not showing that much profitability as it shown in past years following the global trend except the industries one of the reason for that seems to be the price of input, sugarcane, is set by the provincial government, is increased by 10-15% every year while prices of out put, refined white sugar, is falling because global glut of sugar production. Only sugar companies with ethanol operations are showing some reasonable growth and profitability.
Analysis as per nine month ended 31st March 2013
The gross sales of nine month ended March 2013 shows around 21.12% decline as of the same period in 2012.The gross profit margin decreased from 32.42% to 27.84% around 16% change from last year same period financial results.
The administrative expense increased by 2.21% and distribution expense incremented by 10.57%.The amount of other operating charges decreased by 39%. The