PETALING JAYA: Farm Fresh Bhd
’s net profit for the second quarter ended Sept 30, 2024 (2QFY25) more than doubled year-on-year to RM26.2mil, underpinned by lower cost of dairy raw materials and contributions from Inside Scoop and Sin Wah.
In a filing with Bursa Malaysia, the milk producer also attributed its improved net profit performance in 2QFY25 to improving margins from Australian operations following the reduction in season farmgate prices by about 11% beginning July 2024.
Farm Fresh’s higher net profit translates to an earnings per share of 1.40 sen from 0.68 sen in 2Q24.
The higher net profit was also in line with the increase in revenue by 26% y-o-y to RM249.2mil in 2QFY25.
The group said this was driven by the full quarter revenue contribution from Sin Wah, higher HORECA (hotels, restaurants and cafes) and commercial UHT sales, coupled with positive impact from launching of new products like Farm Fresh Grow, Farm Fresh Choco Malt and consumer-packaged goods ice cream.
For the six months ended Sept 30, 2024 (6M25), Farm Fresh’s net profit also more than doubled y-o-y to RM52.2mil. Revenue also surged by 28% y-o-y to RM490.9mil.
Going forward, the group expects to continue its growth trajectory with several positive developments consisting of both category expansion of our products and regional expansion.
Farm Fresh noted it is in the process of expanding its Muadzam Shah farm with the additional 500 acres of land leased from the Pahang State Government with expected commencement of operations in mid-2025. This expansion is expected to double the group’s total capacity in Muadzam Shah to 6,000 dairy cows.
Farm Fresh said its plans to expand regionally are also taking shape in the Philippines, where the company has commenced its factory operations in end-September 2024.
The group is planning to have its chilled products, UHT products and milk powder products sold in the Philippines, focusing first on the Greater Manila market.
As for Australia, with the reduction of farmgate milk prices by about 11% and incremental volume of exports to the Middle East market, Farm Fresh said it expects its Australian results to continue to improve over the next few quarters.
Farm Fresh declared an interim dividend of one sen per share, with an ex-date of Dec 12, payable on Dec 27.
