KUALA LUMPUR (June 18): Vegetable wholesaler and distributor Farm Price Holdings Bhd (KL:FPHB) has proposed to expand its sale of fruits, frozen food and other grocery products through the acquisition of the business and assets of two Johor-based firms for RM4.5 million in cash.

In a filing with Bursa Malaysia on Wednesday, the company said it plans to acquire Hong Yun Vegetables & Fruits Sdn Bhd's grocery wholesale and retail business along with assets such as furniture and fittings and factory equipment, for RM3.9 million.

Additionally, Farm Price has entered into an agreement with D & D Sinma 8888 Univeg Trading to acquire assets such as motor vehicles, plants, and machinery for RM600,000.

The total purchase consideration will be funded through internally generated funds, the company said, adding that the acquisitions are expected to be completed in the third quarter of this year.

Farm Price said the acquisitions will broaden its supply chain with new product offerings. The move is also aimed at expanding its customer base in the food services sector across Malaysia and Singapore, while contributing positively to the group’s revenue and future earnings.  

Farm Price is mainly involved in the wholesale and distribution of fresh vegetables. The company also operates a retail store in Ulu Tiram, Johor, selling fresh vegetables, together with food and beverages products and other groceries, directly to end-consumers.

For the first quarter ended March 31, 2025 (1QFY2025), Farm Price reported a 5.91% decline in net profit to RM2.59 million from RM2.66 million a year earlier, primarily due to higher finance costs and taxation.

Revenue fell 2.9% to RM29.82 million from RM30.71 million due to lower sales in the wholesale distribution segment. The company's cash and bank balances stood at RM16.6 million at the end of the quarter.

Farm Price shares closed unchanged at 49.5 sen, valuing the company at RM222.8 million. The counter has seen little change year-to-date.