KUALA LUMPUR: Johor-based wholesaler and distributor of fresh vegetables, food and beverage (F&B) products and other groceries, Farm Price Holdings Bhd’s revenue improved to RM31.1 million for the fourth quarter (Q4) ended December 31, 2024 (FY24) from RM30.6 million posted in the third quarter (Q3) FY24.
There are no comparative figures for Q4 FY23 and year-to-date results as this is the fourth interim financial report being announced in compliance with the Bursa Malaysia ACE Market listing requirements.
The group’s profit after tax (PAT) increased by 10.7% to RM3.2 million in Q4 FY24 from RM2.9 million in Q3 FY24, mainly due to a gain in foreign exchange.
For FY24, Farm Price recorded a revenue of RM123.0 million, of which 92.7% was contributed by the wholesale distribution segment with the balance from the retailing segment.
Geographically, the Malaysian market contributed 71.5% of total revenue, while the Singapore market accounted for 28.5%.
The group reported a PAT of RM10.3 million in FY24, translating into a healthy PAT margin of 8.5%.
Excluding the one-off IPO listing expenses of RM1.3 million for FY24, Farm Price would have recorded an adjusted PAT of RM11.3 million and an adjusted PAT margin of 9.2%.
Managing director Dr Lawrence Tiong Lee Chian said the company is positive in concluding the financial year with a set of positive results following the new status as a publicly listed company.
“Looking ahead, we anticipate a busy fiscal year abuzz with activities.
“To begin, our new regional distribution centres in Cameron Highlands, Pahang, and Nilai, Negeri Sembilan, along with the new sales and marketing office in Singapore, have all commenced operations in December 2024.
“We expect these expansions to contribute positively in FY25, further enhancing our market coverage and distribution efficiency,“ he said.
Meanwhile, Farm Price’s new distribution centre in Kota Kinabalu, Sabah, is set to commence operations in the first quarter of FY25.
Through this initiative, the company is broadening its wholesale offerings beyond fresh vegetables to include fruits.
“With Sabah as a strategic hub, we also plan to strengthen our distribution in the Sarawak market, further strengthening our distribution capabilities across East Malaysia and solidifying our national foothold in the fresh vegetable wholesale distribution industry,“ he said.
Meanwhile, Singapore remains a key growth market for Farm Price, offering higher profit margins.
Its contribution is expected to grow with the completion of the Senai Centralised Distribution Centre expansion, which is crucial in meeting the increasing demand from the region.
The construction works are on track and are expected to be completed by the end of 2025.
It will nearly double the current built-up space of 78,721 sq ft with an additional 70,827 sq ft of operational space and increasing cold room capacity by approximately 10,000 pallets annually upon completion.
“All in all, we continue to focus on our expansion plans and are confident in Farm
Price’s growth prospects.
“The market outlook is positive, as fresh vegetables and fruits are food staples with sustained demand.
“With Malaysia and Singapore placing greater emphasis on food security, we are committed to contributing to this important cause,” Lawrence added.
To recap, Farm Price was listed on the ACE Market on 14 May 2024 and has successfully raised a total of RM24.5 million.
