PETALING JAYA: Farm Fresh’s first-quarter net profit jumped by over 26% as the dairy producer sold more higher-margin products and benefited from cheaper dairy raw materials.
In a filing with Bursa Malaysia, Farm Fresh reported a net profit of RM32.8mil in the first quarter of the financial year ending March 31, 2026 (1Q26).
This compares to RM26mil in the previous corresponding quarter.
Revenue also grew 7.8% year-on-year (y-o-y) to RM260.58mil.
Farm Fresh said the improved number was achieved on the back of a higher Malaysian revenue, underpinned by positive sales contribution from new products.
These include children’s milk (Farm Fresh Grow), chocolate malt, full cream milk powder, consumer-packaged goods (CPG) ice cream and butter.
The increased turnover from the Malaysian operation, however, was partially offset by a decrease in Australian revenue due to lower external sales from Goulburn Valley Creamery Pty Ltd.
With an improved bottom line, Farm Fresh’s earnings per share rose to 1.75 sen.
No dividend was declared for 1Q26.
In a statement, group managing director and group chief executive officer Loi Tuan Ee said the strong 1Q26 results set the stage for a “stronger year ahead”, buttressed by the group’s strategy of product diversification and regional expansion.
He pointed out that the group has made good progress with a series of successful launches, especially its CPG ice cream.
The strong demand for the ice cream brand resulted in Farm Fresh expediting the increase in capacity at its Taiping plant via two new lines, increasing its capacity to 300,000 pieces per day while waiting for the new Enstek plant to be ready in early 2026.
Likewise, products such as choco malt have also gained traction following the introduction of new sachet and bulk formats that cater to different customers’ demand along with adjacent categories like full cream milk powder, butter, and cultured milk, which have been well received since hitting the shelves.
“Moving upstream, the expansion at Muadzam Shah is advancing well with the arrival of 1,300 new dairy cows in May 2025, which will eventually double our farm capacity and significantly boost our raw milk production upon full completion in 2026.
“Regionally, we are making headway into the Philippines as operations continue to scale up with a growing number of listings across modern trade outlets and the hotel, restaurant, and cafe channels.
“Most recently, we have also started to export our dairy products to Cambodia,” said Loi.
