Farm Fresh reports record-breaking quarterly revenue

PETALING JAYA: Farm Fresh Bhd, one of Malaysia’s leading dairy producers, reported record-breaking revenue of RM211.6 million for its third quarter ended Dec 31, 2023 (Q3’24).

This represented an increase of 30.5% compared to the previous year’s corresponding quarter, and 6.7% growth compared to the preceding three-month period. The increase in revenue is contributed by the hotel, restaurant and cafe (Horeca) distribution channel, higher sales volume coming from UHT products as well as contributions from Inside Scoop Sdn Bhd and Sin Wah Ice Cream Sdn Bhd.

The group recorded a significant increase in profitability mainly driven by reduction in input costs from dairy raw materials, higher prices for chilled ready-to-drink products in Malaysia effective mid-July 2023 and contribution from Inside Scoop and Sin Wah.

In comparison to the preceding quarter, gross profit (GP), profit before tax (PBT) and profit after tax (PAT) grew 25.7%, 67.8% and 57% respectively to RM65.6 million, RM24 million and RM20.6 million. In comparison to the corresponding quarter of the preceding financial year, the group recorded improvements of 66.2%, 18.1% and 9.6% in GP, PBT and PAT respectively, compared to RM39.5 million, RM20.4 million and RM18.8 million.

Farm Fresh group managing director and group CEO Loi Tuan Ee’s said they look forward to launching their consumer packaged goods ice cream by June.

“We plan to install our new production line which is set to arrive in April at our Taiping plant and will commence production while waiting for the completion of our Enstek plant in 2025. Moreover, the recent acquisition of Sin Wah provides immediate access to strategic distribution drop points and logistical capabilities, which will further fortifying our ice cream distribution network,” he added.

Loi said they are also starting their butter production at their Taiping plant, targeting both Horeca and modern trade segments, alongside cultured milk, which is to be produced at their Larkin plant.

In pursuit of regional growth, he added, Farm Fresh is focused on having its Philippines plant operational by May, pending the completion of necessary licences and registrations.

“Our initial plans will be centred around assortment of chilled products, UHT products, and growing-up milk powder for the Philippine market, with a primary focus on the Greater Manila area,” said Loi.