PETALING JAYA: Dairy producer Farm Fresh Bhd posted its highest ever quarterly revenue and profit before tax for the fourth quarter ended March 31, 2024.
The group’s revenue increased to RM215 million, which represents an increase of 33.3% over the preceding year’s corresponding quarter.
It recorded a 450.7% leap in profit before tax (PBT) to RM24.8 million, a 435.1% surge in profit after tax (PAT) to RM24 million and a 389.4% growth in profit after tax and minority interest (Patami) to RM23.9 million.
For the full year, Farm Fresh reported an all-time high revenue of RM810.4 million, marking a growth of 28.7% over the preceding year’s figure. PBT, PAT and Patami increased by 32.4%, 26.7% and 26.9% respectively to RM69.1 million, RM63.3 million and RM63.5 million.
The favourable results were mainly attributed to the successful introduction of new products such as Yarra by Farm Fresh and Farm Fresh Grow in both liquid and powder formats, higher sales volume from the hotel, restaurant and cafe (Horeca) distribution channel and UHT (ultra-high temperature processing) products, as well as contributions from Inside Scoop Sdn Bhd and Sin Wah Ice Cream Sdn Bhd. The reduction in costs of dairy raw materials and price increase of chilled ready-to-drink products and certain UHT products in Malaysia effective July 2023 further supported the improved profitability of the group.
Group managing director and group CEO Loi Tuan Ee said, “Building on our turnaround and improving performance of the previous quarters, we are pleased to close off the financial year on a high note with stronger sales volume and lower input costs. Farm Fresh is well-positioned for sustained growth, with a focus on both expanding product offerings and entering new markets as we believe that there is immense potential for us to continuously capture larger market share leveraging on our strong brand reputation.”
He added that the steps that Farm Fresh has taken to build various platforms for future growth are taking shape and will augur well for the group’s performance in the next financial year.
“We are actively expanding our product categories, building on the success of the Farm Fresh Grow children nutrition. We are also expecting this momentum to continue following the imminent launch of our consumer-packaged goods ice cream which is slated for launch in end-July or August 2024 and our planned butter product to serve both Horeca and modern trade. Additionally, the we also plan to produce cultured milk in the coming months which will further expand our product offering,” he said.
Farm Fresh’s regional ambitions are also taking shape as the group gears up for expansion into the Philippines, with the factory expected to be operational by July. It intends to introduce its chilled, UHT and growing-up milk powder products to the Philippines with initial focus on the Greater Manila market.
