PETALING JAYA: Farm Fresh Bhd sees the reduction in cost of dairy raw materials, in particular whole milk powder, as a contributing factor to the increase in its profitability.
For its second quarter ended Sept 30, 2023, Farm Fresh’s net profit rose to RM12.79mil from RM11.19mil in the previous corresponding period, while revenue grew to RM198.3mil from RM162.14mil.
Basic earnings per share stood at 0.68 sen versus 0.60 sen previously.
Additionally, Farm Fresh said it has also made progress in its expansion plans in the Philippines.
“We have secured a site located within an hour from Manila for our processing plant, which is slated to be operational in early 2024.”
Group managing director and group chief executive officer Loi Tuan Ee said the positive results posted for the quarter is very encouraging and is testament to the hard work that the company has put through during the tough times.
“While higher revenues and improved margins due to lower input costs are good things to report on, we are even more excited with our work in laying down the foundation on more catalysts for higher growth, including launching of our consumer packaged goods (CPG) ice cream, our entry into the Philippines market and our recently launched growing-up milk in powder format, made from pure natural dairy with no sugar added and fortified with world renowned BB-12 Probiotic,” he said in a statement.
As part of its ongoing plans to launch its CPG ice cream in early 2024, Farm Fresh has recently completed the acquisition of a 70% stake in Sin Wah Ice Cream Sdn Bhd.
“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,” Loi said.
“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,” he added.