Lahore: Mitchells Fruit Farms Limited has reported a decline in its nine-month profit for the period ending March 31, 2025. The company’s unaudited condensed interim financial statements reveal a net profit after tax of PKR 43.49 million, a significant decrease from the PKR 140.00 million reported during the same period last year. The earnings per share have also decreased from 6.12 to 1.90.

The company’s sales revenue stood at PKR 1.99 billion, down from PKR 2.10 billion in the previous year. Despite the overall reduction in sales revenue, sales volumes increased by 4.87%, driven by robust local demand during Ramzan. The gross profit also saw a decline from PKR 609.69 million to PKR 574.76 million, as margins were pressured by weak export performance.

According to information available from the Pakistan Stock Exchange (PSX), the company has undertaken significant cost management and operational efficiency measures in response to lower profitability and tight liquidity conditions. These efforts included managing raw and packing material costs and containing administrative expenses, contributing to enhanced operational efficiencies.

Distribution and marketing expenses increased significantly, reflecting a strategic shift towards Modern Trade channels. This strategic adjustment included trade incentives and expanding the sales force to access new market segments. Finance costs decreased in alignment with the State Bank of Pakistan’s reduction in the policy rate, offering support for business operations in the upcoming quarter.

A strategic review by major shareholders Syeda Maimanat Mohsin and Syeda Matanat Ghaffar has concluded with CCL Holdings (Private) Limited as the preferred bidder for acquiring up to 40.63% shares. Negotiations for definitive agreements are underway, subject to regulatory approvals.

Looking forward, the company expresses cautious optimism about the macroeconomic environment. A downward trend in inflation and interest rates is anticipated to improve consumer purchasing power, benefiting the Fast-Moving Consumer Goods (FMCG) sector. The company plans to focus on expanding export sales, ensuring timely procurement of seasonal raw materials, and enhancing operational productivity to achieve improved financial results in the fourth quarter.