CEO Loi said the group was still actively growing and expanding with its planned commencement of operations in the Philippines and launch of its own growing-up milk in powder form by end-2023.
KUALA LUMPUR: While the escalating costs of dairy raw materials have taken a bite out of Farm Fresh Bhd
’s bottom line, the dairy producer said it was optimistic over its growing revenue and market share.
In the first quarter of its 2024 financial year (FY24), Farm Fresh posted a net profit of RM6.37mil, which was less than half of the RM15.24mil registered in the first quarter of FY22.
This represented an earnings per share of 0.34 sen as compared to 0.82 sen in the comparative quarter.
However, the group’s revenue in the quarter ended June 30, 2023 rose to RM185.46mil from RM144.02mil to achieve its highest quarterly revenue to-date on the back of higher sales contributions from the hotel, restaurant and cafe distribution channel, its latest product offerings and its Australian subsidiaries.
“We have weathered through the period of heightened input costs for the past year and have continued to remain profitable
“We now see several developments which are pointing towards a turnaround as far as input costs are concerned with the price of dairy raw materials gradually coming down,” said group managing director and group chief executive officer Loi Tuan Ee in a statement yesterday.
In anticipation of the recovery, he noted the group was still actively growing and expanding with its planned commencement of operations in the Philippines and launch of its own growing-up milk in powder form by end-2023.
In addition to that, Farm Fresh’s recent completed acquisition of Inside Scoop will also pave the way for its entry into the consumer packaged goods ice cream market, planned in early 2024.
“What’s more we have also commenced operations of our Taiping processing plant along with the installation of additional processing lines at the Muadzam Shah facility to cater to the increasing demand for our products,” he added.
With all that said, Loi noted the outlook for Farm Fresh remains positive, given all the recent developments, and “we remain optimistic towards what the future holds for the group”.
