KUALA LUMPUR (Feb 28): Farm Fresh Bhd's (KL:FFB) net profit rose 26.5% in the third quarter ended Dec 31, 2024 (3QFY2025), driven by higher sales of premium-margin products, partially offset by increased administrative costs due to the expansion of Inside Scoop outlets.

Net profit for the three-month period stood at RM25.86 million or 1.38 sen per share in 3QFY2025, compared to RM20.44 million or 1.09 sen per share a year ago, the Johor-based dairy product specialist's bourse filing showed.

Farm Fresh did not propose any dividend for the quarter under review.

Quarterly revenue grew 16.5% year-on-year to RM246.6 million from RM211.6 million, boosted by strong Malaysian sales from new product launches, though partially offset by lower Australian revenue from Goulburn Valley Creamery.

Administrative expenses expanded 31.3% to RM23.49 million from RM17.89 million previously, while selling and distribution expenses rose 18.3% to RM22.3 million from RM18.8 million.

For the first nine months ended Dec 31, 2024 (9MFY2025), Farm Fresh’s net profit nearly doubled to RM78 million from RM39.6 million in 9MFY2024, as revenue increased 23.9% to RM737.4 million from RM595.4 million.

In a separate statement, Farm Fresh said its gross profit margin for the nine-month period improved to 32.2% from 25.3%, benefiting from lower input costs and higher contributions from Inside Scoop, Sin Wah, and its Australian operations. Sin Wah is a local aiskrim potong maker.

“I am pleased with our progress in growing sales of existing products and expanding into new categories, which has led to strong results for the quarter and the nine months of FY2025,” said group managing director and chief executive officer Loi Tuan Ee.

He added that strong demand for consumer-packaged goods (CPG) ice cream has prompted the group to accelerate the expansion of its Taiping plant to meet demand while awaiting the completion of the Enstek plant in Negeri Sembilan by end-2025.

"As part of our ongoing efforts to diversify our product portfolio, we have recently introduced our full cream milk powder and butter. We are also planning to launch our Farm Fresh Grow cultured milk in March 2025," he noted.

On the farming side, the group is expanding its Muadzam Shah Farm in Pahang by leasing an additional 500 acres from the state, which will double its dairy cow capacity to 6,000. Operations are expected to begin by mid-2025.

The group also commenced factory operations in the Philippines in late September 2024, with plans to introduce chilled, ultra-high-temperature (UHT) and milk powder products, starting in Greater Manila.

At the midday break on Friday, Farm Fresh shares fell two sen or 1.2% to RM1.66, valuing the company at RM3.11 billion. Year to date, the counter has declined over 10%.