KUALA LUMPUR: Farm Fresh Bhd posted an all-time high revenue of RM810.4 million in financial year 2024, thanks to new products, higher sales volume from the hotel, restaurant and cafe distribution channel and UHT products, as well as contributions from Inside Scoop Sdn Bhd and Sin Wah Ice Cream Sdn Bhd.
Net profit was 26.7 per cent higher for the year at RM63.3 million.
Farm Fresh in a statement today said the reduction in costs of dairy raw materials and price increase of chilled ready-to-drink products and certain UHT products in Malaysia effective July 2023 further supported the improved profitability of the group.
"Building on our turnaround and improving performance of the previous quarters, we are pleased to close off the financial year on a high note with stronger sales volume and lower input costs. Farm Fresh is well-positioned for sustained growth, with a focus on both expanding product offerings and entering new markets as we believe that there is immense potential for us to continuously capture larger market share leveraging on our strong brand reputation," Farm Fresh group managing director and group chief executive officer Loi Tuan Ee said.
For the fourth quarter (Q4) ended March 31, 2024, Farm Fresh recorded a four-fold increase in net profit to RM23.93 million from RM4.89 million in the year ago.
The company posted its highest ever quarterly revenue at RM215.0 million from RM161.36 million last year, which represents an increase of 33.3 per cent over the preceding year's corresponding quarter.
Ee said Farm Fresh's regional ambitions are taking shape as the company gears up for its expansion into the Philippines, with the factory expected to be operational by July 2024.
He said this strategic move marks the beginning of the next phase of its regional expansion.
"We intend to introduce our chilled, UHT and growing-up milk powder products to the Philippines with our initial focus on the Greater Manila market. "Aside from that, our commitment to growth extends beyond just product diversification and regional expansion. Farm Fresh remains dedicated to its environmental, social and governance (ESG) agenda and has been making significant inroads through the commencement of operations of our biogas plant in April 2024.
"This is projected to significantly reduce carbon dioxide emissions, in addition to our efforts to reduce plastics usage via the expansion of our milk-on-tap initiative," he added. Ends