Matco Foods earnings rise 39% despite sales dip

April 28, 2026 (MLN): Matco Foods Limited (PSX: MFL) reported a robust 39.27% year-on-year expansion in profit for the period for the nine months ended March 31, 2026, recording Rs414.26m compared to Rs297.45m in the corresponding period last year.

The company's basic and diluted earnings per share (EPS) climbed 39.09% to Rs3.38, up from Rs2.43 in 9MFY25, reflecting meaningful value accretion for shareholders during the period.

MFL's net sales declined 16.91% to Rs17.64bn from Rs21.23bn. However, cost of sales contracted at a faster pace of 19.61% to Rs14.90bn, allowing gross profit to register a marginal 1.57% expansion to Rs2.74bn from Rs2.70bn.

Operating expenses rose 22.19% to Rs1.31bn, resulting in operating profit declining 11.99% to Rs1.43bn from Rs1.63bn.

Below the operating line, finance costs declined significantly by 25.47% to Rs1.12bn from Rs1.50bn, providing a material tailwind.

The share of profit from associated company surged 180.85% to Rs63.11m, while exchange gain contracted sharply by 79.15% to Rs54.10m.

Profit before levies and income tax stood at Rs485.41m, a 7.10% increase from Rs453.25m in 9MFY25.

Levies and taxation declined sharply by 54.33% to Rs71.15m from Rs155.80m, emerging as the most consequential driver of bottom-line growth during the period.

After accounting for levies and taxation, Matco Foods Limited closed the nine-month period with a profit for the period of Rs414.26m, representing a 39.27% expansion over the Rs297.45m reported in the corresponding period of last year.

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