Mitchell’s Fruit Farms Limited (PSX: MFFL) announced a sharp decline in profitability for the nine months ended March 31, 2025, with net earnings falling 69% year-on-year to Rs43.5 million amid weaker sales and higher distribution costs.
The company’s earnings per share (EPS) also dropped significantly to Rs1.90, compared to Rs6.12 recorded in the same period last year, according to financial results shared on Monday.
During the nine-month period, Mitchell’s posted sales of Rs1.99 billion, down 5.2% from Rs2.10 billion in the prior year. The cost of sales decreased slightly by 5% to Rs1.41 billion, resulting in a gross profit of Rs575 million, a 5.7% decline year-on-year.
The company’s bottom line was pressured by a steep increase in distribution and marketing expenses, which rose 29% to Rs293 million, up from Rs227 million in the same period last year. Administration expenses remained relatively stable at Rs152 million, while other operating expenses edged down 3% to Rs15.2 million.
Other income fell sharply by 44% to Rs17.4 million, further impacting overall profitability. Finance costs eased by 22% to Rs62.1 million, offering some relief but not enough to offset other pressures.
As a result, profit before levy and tax shrank to Rs69.5 million from Rs167.6 million, reflecting a 58.5% decline. After accounting for taxation of Rs26 million, Mitchell’s reported a profit before taxation of Rs43.5 million.
The company’s financial performance highlights the challenges faced during the period, including softer consumer demand and increased marketing efforts to maintain market presence amid a competitive environment.
Mitchell’s management has yet to issue forward-looking guidance, but analysts expect the company to focus on optimizing operational efficiency and managing cost pressures in the upcoming quarters.
