Mitchell’s Fruit Farms Limited, which is the oldest food company in Pakistan, has announced the financial results for the year ended December 31, 2018. The company’s losses have increased to Rs. 292 million as compared to a loss of Rs 30.88 million in the corresponding period last year.
The company posted sales of Rs. 1.62 billion, down by 14.29% from Rs. 1.89 billion in 2017.
Over the years, MFFL has seen its earnings trot downwards in the negative zone, where sales also depict a slowdown in growth rate over the years. The cost of sales of the company was noted at Rs. 1.37 billion as compared with Rs. 1.44 billion.
Overall, the gross profit was down by 44% from Rs. 449 million in the previous year to Rs. 252 million.
The main culprit has been the loss from operations and finance cost (on borrowings) that has eaten away net margins since 2014 and was the main culprit this year as well.
The company saw a 21.50% increase in its administrative expenses which stood at Rs. 136 million. Moreover, the distribution and market expenses increased to Rs 407 million from Rs. 317 million, up by 28.39%.
The company posted a loss from operation of Rs. 268 million during the year. The finance cost increased to Rs. 49 million from Rs. 42 million.
The company reported a loss per share of Rs. 37.16 from Rs. 3.92 loss per share last year.
Mitchell’s Fruit Farms Limited manufactures and sells various farm and confectionery products in Pakistan. It offers squashes, syrups, fruit drinks and nectars, jams, jellies, marmalades, tomato ketchups, sauces, pickles, vinegars, canned foods, pastes and pulps, sugar confectioneries, chocolates, chocolate spreads, and sugar-free products.
It also exports its products to the United Kingdom, the United States, Canada, the Middle East, and South-West Asia
MFFL’s shares at the bourse were trading at Rs. 248, down by Rs. 8.55, or -3.33% with a turnover of 1200 shares on Thursday.