Mitchell’s Fruit Farms Posts Revenue Growth, Net Profit Reaches Rs3.34 Million
Mitchell’s Fruit Farms Limited has announced its audited financial results for the year ended June 30, 2026, showing a mixed financial performance. While the company achieved notable growth in revenue and gross profit, higher operating and financing costs placed significant pressure on profitability. The company ultimately reported a net profit of Rs3.34 million for the year, compared with Rs1.67 million in the previous year. 284178
According to the financial statements, Mitchell’s Fruit Farms generated revenue of approximately Rs2.97 billion during FY2026, compared with Rs2.66 billion in FY2025. This represents an increase of around 11.5%, reflecting stronger sales during the year.
The company’s gross profit rose to Rs827.1 million, from Rs770.2 million a year earlier. However, the increase in gross profit was not sufficient to offset a sharp rise in operating expenses.
Administrative expenses increased to approximately Rs277.8 million, while selling and distribution expenses climbed substantially to Rs562.8 million, compared with Rs386.4 million in FY2025. As a result, the company recorded an operating loss of Rs13.5 million, compared with an operating profit of Rs180.3 million in the previous year. 284178
A major factor supporting the bottom line was the significant increase in other income, which reached approximately Rs278.6 million, compared with only Rs13.6 million in FY2025. At the same time, finance costs declined to around Rs64.2 million from Rs85.4 million.
The financial statements show profit before minimum tax differential and taxation of approximately Rs34.0 million. However, the minimum tax differential of around Rs38.4 million weighed on the final result. After taxation, Mitchell’s Fruit Farms reported a net profit of Rs3.34 million, compared with Rs1.67 million in FY2025. Earnings per share also improved to Rs0.14, from Rs0.07. 284178
Balance Sheet Shows Expansion
The company’s total assets increased significantly during the year. As of June 30, 2026, total assets stood at approximately Rs2.51 billion, compared with Rs1.998 billion a year earlier.
Non-current assets increased to around Rs671.8 million, while current assets reached approximately Rs1.84 billion. Cash and bank balances also rose sharply to about Rs283.6 million, compared with Rs23.0 million at the end of FY2025. 284178
Shareholders’ equity also strengthened during the year. Issued, subscribed and paid-up capital increased to approximately Rs256.5 million, while total reserves stood at around Rs846.6 million, taking total equity to approximately Rs1.10 billion.
The company’s equity position was supported in part by the issuance of 2.78 million ordinary shares through a rights issue at Rs180 per share, generating approximately Rs500 million in proceeds. The statement of changes in equity shows that the transaction contributed substantially to the increase in shareholders’ funds during FY2026. 284178
Operating Cash Flow Remains a Key Concern
Despite the improvement in reported earnings, cash generation from operations remained challenging.
The company reported net cash used in operating activities of approximately Rs264.7 million, compared with Rs215.6 million used in FY2025. This indicates that the improvement in accounting profit did not translate into positive operating cash flow during the year. 284178
Meanwhile, investing activities generated net cash of approximately Rs75.7 million, while financing activities generated about Rs449.7 million. The strong financing inflow was supported by the rights issue and other financing transactions.
As a result, cash and cash equivalents increased from approximately Rs23.0 million at the beginning of the year to Rs283.6 million at June 30, 2026. 284178
Outlook
Mitchell’s Fruit Farms’ FY2026 results present a mixed picture. The company succeeded in increasing revenue, gross profit and reported net earnings, while its balance sheet expanded and liquidity improved substantially. However, the sharp increase in selling and distribution expenses, the swing from operating profit to operating loss, and continued negative operating cash flow remain important areas for investors to watch.
The results suggest that the company’s future performance will depend not only on maintaining sales growth but also on improving operating efficiency, controlling expenses and converting revenue growth into stronger sustainable cash generation.
Overall, Mitchell’s Fruit Farms entered FY2027 with higher revenue, a stronger equity base and substantially improved cash balances, but profitability at the operating level and cash flow generation remain key challenges.
