Mitchell’s Fruit Farms Returns to Strong Profit Growth in Nine Months as Other Income Boosts Earnings

KARACHI: Mitchell’s Fruit Farms Limited (PSX: MFFL) reported a significant improvement in profitability for the nine-month period ended March 31, 2026, with net profit more than doubling compared to the same period last year, despite higher operating expenses and a decline in operating profit. The improvement was largely supported by a substantial increase in other income.

According to the company’s condensed interim financial statements, net sales rose to Rs2.25 billion during the nine-month period, compared with Rs1.99 billion in the corresponding period of the previous year, reflecting healthy revenue growth. However, the increase in the cost of sales resulted in gross profit edging slightly lower to Rs571.57 million from Rs574.76 million a year earlier.

Operating expenses increased sharply during the period, with administrative and selling & distribution expenses rising significantly. As a result, the company posted an operating loss of Rs48.81 million, compared with an operating profit of Rs129.38 million in the same period last year.

Despite weaker operating performance, Mitchell’s recorded other income of Rs248 million, a substantial jump from Rs17.41 million in the corresponding period of FY25. This helped lift profit before taxation to Rs134.93 million, nearly doubling from Rs69.52 million a year earlier.

After accounting for taxation of Rs28.03 million, the company posted a net profit of Rs106.90 million, compared with Rs43.50 million in the same period last year, representing an increase of around 146% year-on-year. Earnings per share (EPS) improved to Rs4.67, up from Rs1.90 in the corresponding period of FY25.

On the balance sheet, Mitchell’s total assets increased to Rs2.32 billion as of March 31, 2026, from Rs2.00 billion at the end of June 2025. Shareholders’ equity also strengthened, rising to Rs687.73 million from Rs580.82 million, reflecting the period’s improved earnings.

The interim results indicate that while the company continues to face pressure from rising operating costs, strong non-operating income enabled Mitchell’s Fruit Farms to deliver a solid improvement in profitability during the first nine months of FY2026.