In FY24, Mitchells Fruit Farms Limited (MFFL) reported a net profit of PKR 456.24 million (EPS: PKR 19.95), a significant improvement from the net loss of PKR 59.20 million (LPS: PKR 2.59) in the previous year’s corresponding period. Despite a 3% YoY decline in net revenue to PKR 2.64 billion, gross profit rose by 22% YoY, reaching PKR 789.17 million, up from PKR 648.12 million in the SPLY.
The gross profit margin saw a notable increase, climbing to 29.87% from 23.78%, as the company’s cost-control measures and price rationalization boosted profitability despite a slight turnover decline. Management reported effective cost-control efforts, reducing Selling & Distribution Expenses and Administrative Expenses by 23% and 7%, respectively. This facilitated a robust turnaround in operating profit, which surged to PKR 270.53 million from PKR 15.44 million in the previous year.
Management noted that operating profit included gains from the sale of fixed assets, contributing to cash flow improvements through cost reductions and sales continuity.
The cost of sales decreased 11% YoY, amounting to PKR 1.85 billion, compared to PKR 2.08 billion in the previous period. Finance costs, however, rose by 13% YoY to PKR 96.19 million due to elevated KIBOR rates, while other income showed a significant increase, reaching PKR 371.67 million.
Management also reported that export margins, including for sauces, are higher than those of domestic sales. However, marketing expenses were constrained by cash flow limitations.
Going forward, MFFL plans to emphasize product efficiencies, quality improvements, and operational enhancements over volumetric growth.
The company aims to increase exports, boost B2B sales through its excess pulping capacity, and relaunch products with improved formulations.
Additionally, MFFL intends to prioritize high-margin secondary categories and expand customer outreach
Important Disclosures
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