Farm Fresh posts higher 3Q net profit, jump in revenue

The dairy producer plans to launch consumer packaged goods ice-cream by June 2024.

KUALA LUMPUR: Farm Fresh Bhd, in announcing record-breaking revenue in the third quarter of its financial year, says it remains positive over its future prospects and growth trajectory.

During the quarter ended Dec 31, 2023, the dairy producer recorded a net profit of RM20.44mil, up from RM18.77mil in the year-ago quarter, while earnings per share rose to 1.09 sen from 1.01 sen.

The group’s revenue during the quarter under review jumped 30.5% to RM211.62mil from the previous corresponding quarter.

For the nine-month period, the group’s net profit was RM39.6mil compared to RM45.19mil in the first nine months of 2023’s financial year, while revenue was RM595.38mil against RM468.33mil.

According to Farm Fresh, the upsurge 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.

It said profitability was also improved as a result of a reduction in input costs from dairy raw materials, increase in prices for chilled ready-to-drink products in Malaysia effective mid-July 2023 and contribution from Inside Scoop and Sin Wah.

Moving forward, group managing director and CEO Loi Tuan Ee said it is looking forward to launching its consumer packaged goods ice cream with a planned launch by June 2024.

“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 fortify our ice cream distribution network,” he said in a statement.

He added that the group is also starting butter production at its Taiping plant and is focused on having its Philippine plant operational by May 2024, pending the completion of necessary licences and registrations.

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