⚡ Flash Summary
Mitchell’s Fruit Farms Limited reported a significant increase in profit after taxation for the quarter ended September 30, 2025. The company’s revenue increased year-over-year, alongside decreases in the cost of sales. The company reported profits of 183.72 million Rupees versus 15.31 million Rupees the prior year. This resulted in a substantial boost to the company’s un-appropriated profit.
📌 Key Takeaways
- ✅ Revenue increased by 8.08% YoY, from 649.67 million Rupees to 702.16 million Rupees.
- ✅ Cost of Sales decreased by 10.64% YoY, from 467.53 million Rupees to 523.78 million Rupees.
- ✅ Gross Profit increased by -2.07% YoY, from 182.14 million Rupees to 178.37 million Rupees.
- ✅ Operating Profit decreased by -30.86% YoY, from 42.66 million Rupees to 29.49 million Rupees.
- ✅ Other Income increased significantly from 5.68 million Rupees to 228.00 million Rupees.
- ✅ Profit before Taxation increased substantially from 23.54 million Rupees to 192.55 million Rupees.
- ✅ Profit after Taxation increased dramatically from 15.31 million Rupees to 183.72 million Rupees, more than 10x increase
- ✅ Administrative Expenses increased by 12.73% YoY, from 49.66 million Rupees to 55.98 million Rupees.
- ✅ Selling & Distribution Expenses increased by 3.43% YoY, from 89.82 million Rupees to 92.90 million Rupees.
- ✅ Finance Costs decreased by 26.4% YoY, from 23.17 million Rupees to 17.06 million Rupees.
- ✅ Net cash used in operating activities decreased from (1,691,923) to (25,217,846)
- ✅ Net cash flow from investing activities increased from (4,916,857) to 222,812,500
🎯 Investment Thesis
Based on the improved financial performance, a BUY recommendation is warranted. The price target should reflect the substantial increase in earnings and the potential for continued growth. The time horizon is medium-term (1-3 years), allowing for the company to demonstrate the sustainability of its financial improvements.
Disclaimer: AI-generated analysis. Not financial advice.