KUALA LUMPUR (May 29): Farm Fresh Bhd’s (KL:FFB) net profit for the financial year ended March 31, 2024 (FY2024) rose 27% to RM63.53 million, from RM50.08 million a year ago, as full-year revenue surged to RM810.41 million from RM629.69 million.

Earnings per share stood at 3.40 sen, versus 2.69 sen previously.

In a bourse filing on Wednesday, Farm Fresh said its net profit for the fourth quarter rose to RM23.93 million from RM4.89 million.

The company did not declare any dividend.

Reviewing its performance, Farm Fresh said the increase in revenue was due to higher Horeca (hotels, restaurants and cafes) and ultra-high treatment (UHT) product sales, positive impact of the launching of new products, and revenue contributions from the recently acquired The Inside Scoop Sdn Bhd and Sin Wah Ice Cream Sdn Bhd.

Farm Fresh said the increase in profitability was mainly driven by a reduction in input costs of dairy raw materials, and positive impact of price increases for chilled ready-to-drink products and certain UHT products in Malaysia, effective from mid-July 2023, as well as contributions from Inside Scoop and Sin Wah.

On its prospects, Farm Fresh said its plans to expand regionally are also taking shape in the Philippines, where the company expects to have a factory operational by July.

“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.

“As for Australia, with the continuing expected softening of farmgate milk prices and incremental volume of exports to the Middle East market, we expect our Australian results to improve from April 2024,” it said.

At the midday break on Wednesday, Farm Fresh had dipped 1.36% or two sen to RM1.45, with 607,300 shares traded.