KUALA LUMPUR: Farm Fresh Bhd's net profit plunged 64.5% to RM11.2mil in the second quarter ended Sept 30 (2Q) from RM31.5mil posted in the same quarter last year.
Revenue, however, jumped 32.5% to RM162.14mil from RM122.4mil while earnings per share fell to 0.60 sen for the quarter against 1.93 sen previously.
The dairy producer said the growth was mainly driven by positive sales momentum, the launch of new products and further boosted by the School Milk Programme.
Despite the cost pressures arising during the quarter, the group has managed to maintain its gross profit margin, which reduced slightly from 24.6% in the corresponding quarter to 24.5% in the current quarter.
In the first six months to Sept 30, Farm Fresh's net profit tumbled 47.9% to RM26.42mil from RM50.74mil, while revenue grew 19% to RM306.16mil from RM257.19mil.
Farm Fresh group managing director and group chief executive officer Loi Tuan Ee said, “Looking ahead, the group is expected to enjoy further growth in revenues with the launch of Farm Fresh Grow (October 2022) and Yarra by Farm Fresh (November 2022), enabling the group to compete and garner higher market share in the ambient market.
“The Taiping processing plant slated for completion in December 2022 should enable the group to see improvement to the chilled milk production capacity, reduce logistical costs and free up capacity at our Larkin processing plant. This key development should bode well overall, where the group will then be able to further focus on its export business to Singapore.”