KUALA LUMPUR: Farm Fresh Bhd's net profit jumped four-fold to RM26 million in the first quarter ended June 30, 2024 (Q1FY25) from RM6.37 million a year ago on the back of higher revenue.
Its revenue rose 30.3 per cent to RM241.7 million in the quarter under review versus RM185.46 million underpinned by sales contribution from new products, higher sales from hotel, restaurant and cafe (Horeca) distribution channel as well as contributions from Inside Scoop and Sin Wah.
Australian revenue rose 7.2 per cent or RM2.6 million driven by increasing external sales from Goulburn Valley Creamery Pty Ltd.
The company said its plans to expand regionally are taking shape in the Philippines where it expects to have its factory operational by end-August.
"We are planning to have our chilled products, UHT products and growing up milk powder sold in the Philippines, focusing first on the greater Manila market," it said in a filing with Bursa Malaysia Securities.
As for Australia, the group saw a turnaround in results in the current quarter and expects further inprovement with the reduction of farmgate milk prices by about 11 per cent beginning July 2024.
"This reduction in farmgate prices, coupled with our hedging of whole milk powder and foreign currency exposures are expected to lower our input costs in the next few quarters," it added.