Saturday, June 15

Farm Fresh Bhd Boosts Profits as Dairy Costs Decline

Farm Fresh Bhd has reported a notable surge in net profit for the second quarter ending Sept 30, 2023, attributing the rise to a reduction in the cost of dairy raw materials, particularly whole milk powder.

The company revealed that its net profit climbed to RM12.79 million from RM11.19 million in the previous corresponding period.

Moreover, revenue witnessed a significant increase, reaching RM198.3 million compared to RM162.14 million previously recorded. This positive financial outcome translated to basic earnings per share rising to 0.68 sen from 0.60 sen in the preceding period.

CEO Loi Tuan Ee expressed satisfaction at the company’s achievements during the challenging period. He emphasized the hard work put in by Farm Fresh, stating, “The positive results posted for the quarter are very encouraging and are testament to the hard work that the company has put through during the tough times.”

Highlighting the strategic expansions, Ee detailed Farm Fresh’s progress in the Philippines, stating, “We have secured a site located within an hour from Manila for our processing plant, which is slated to be operational in early 2024.”

Ee also pointed out Farm Fresh’s foray into consumer packaged goods (CPG) ice cream, emphasizing the recent acquisition of a 70% stake in Sin Wah Ice Cream Sdn Bhd.

He explained, “Other than acquiring a profitable ice cream business with its own brand of ‘ice cream potong’, importantly, this acquisition gives us immediate access to more than 6,000 distribution drop points and logistics capabilities to facilitate the distribution of our ice cream products.”

Additionally, Farm Fresh unveiled plans for the launch of a growing-up milk in powder format, fortified with world-renowned BB-12 Probiotic and made from pure natural dairy without added sugar.

Ee further reiterated the company’s regional plans and the development in the Philippines, asserting, “Our regional plans remain intact. In the Philippines, we have secured a site for our processing plant located within an hour from Manila, which is targeted to be operational in early 2024.”

The CEO’s statement underlined Farm Fresh’s focus on expanding its product line, consolidating acquisitions, and strategically positioning itself for continued growth in the coming quarters.

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