Farm Fresh group managing director and CEO Loi Tuan Ee.
PETALING JAYA: Following record-high quarterly revenue and a net profit that quadrupled in the first quarter, Farm Fresh Bhd
expects its growth trajectory to sustain in the rest of financial year 2025 (FY25), led by a growing product line-up and regional expansion.
The dairy producer, which owns over 10,000 dairy cows and bulls, expects an improvement in profitability due to further lowering of costs.
Farm Fresh began FY25 on a strong footing after its net profit in the first quarter ended June 30 surged four-fold to RM26mil from RM6.37mil in the previous corresponding quarter.
Revenue in the three-month period also rose 30.3% year-on-year to RM241.7mil.
The stronger results were achieved on the back of higher revenue from its domestic operations, underpinned by higher sales contribution from its new products, higher hotel, restaurant, and cafe sales, along with the full-quarterly contribution from its ice cream division under Inside Scoop and Sin Wah.
Its Australian operations also turned around by recording higher revenue and generating an operating profit for the quarter, driven by the rising external sales from Goulburn Valley Creamery Pty Ltd.
The improved profitability raised the earnings per share to 1.39 sen.
No dividend was declared for the quarter.
Farm Fresh, which is 11.7% owned by Khazanah Nasional Bhd, said the stronger results in the first quarter of FY25 was a result of category expansion of its products, recruitment of new customers and cost optimisation.
In a statement, group managing director and chief executive officer Loi Tuan Ee expects continuous growth to come from products such as Farm Fresh Grow in powder format.
“Paired with our newly launched chocolate malt product, we expect this to spur a new growth catalyst for the group.
“As for our consumer-packaged goods ice cream, we have made exciting headway in this space following its recent launch in August 2024.
“Additionally, as part of our plans to expand our product offerings, we intend to include butter and cultured milk products to our product range, which we plan to introduce in the next few months,” he said.
Loi added that Farm Fresh’s regional expansion has taken shape in the Philippines and that the factory will start operating by the end of this month.
This will allow the group to introduce our chilled, ultra-high temperature and growing-up milk powder products to the Greater Manila market.
“As for Australia, we have posted a turnaround this quarter driven by the higher revenues from Goulburn Valley Creamery.
“We expect our Australia results to continue to improve following the reduction in the season farmgate prices by about 11% beginning July 2024.
“The favourable operating environment with lower input costs is expected to lead to positive results in the next quarters,” he said.
