KUALA LUMPUR (Feb 26): Farm Fresh Bhd (KL:FFB) reported a 24.7% rise in third-quarter net profit, driven by stronger mini market and e-commerce sales in Malaysia, as well as growing exports to Cambodia.

The Johor-based dairy producer posted a net profit of RM32.24 million for the third quarter ended Dec 31, 2025 (3QFY2026), compared with RM25.86 million a year earlier. Earnings per share increased to 1.72 sen from 1.38 sen previously.

However, net profit declined from RM36.67 million recorded in the preceding quarter, mainly due to lower school milk deliveries during the year-end school holidays.

Quarterly revenue rose 15.6% to RM285.06 million from RM246.59 million a year earlier, supported primarily by higher contributions from its Malaysian operations. Stronger sales in the Philippines, exports to Cambodia, and new product launches including Butter, AusFresh and Farm Fresh Full Cream Milk Powder also contributed to growth.

The revenue increase was partially offset by weaker Australian revenue due to lower export deliveries.

The group did not declare a dividend for the quarter.

For the nine months ended Dec 31, 2025 (9MFY2026), net profit rose 30.3% to RM101.71 million from RM78.04 million a year earlier, while revenue increased 14% to RM840.57 million from RM737.45 million.

In a filing with Bursa Malaysia on Thursday, Farm Fresh said monthly exports to Cambodia have grown significantly since it began shipping dairy products there in late August 2025, surpassing exports to Singapore, a market it has served for eight years.

"Our strategic pivot into Cambodia has already yielded positive results where our monthly export volume has already surpassed Singapore," said Farm Fresh group managing director and group chief executive officer Loi Tuan Ee in a separate statement.

The group plans to expand its presence in Cambodia by penetrating major modern trade outlets in Phnom Penh, as well as coffee chains and general trade channels with its ultra high temperature (UHT) milk products. A factory being constructed by its partner in Cambodia is slated to commence operations in mid-2026.

Upon completion, the plant is expected to improve cost efficiency and support the introduction of more UHT products tailored to the Cambodia and broader Indochina markets.

Separately, Farm Fresh said its new plant in Bandar Baru Enstek, Negeri Sembilan, is also scheduled to begin operations in mid-2026. The facility will have the capacity to produce about one million pieces of ice cream per day, supporting its expansion in the consumer-packaged ice cream segment following its launch in August 2024.

Looking ahead, the group said it remains optimistic about delivering further category and regional expansion through the end of FY2026 and into the next financial year.

Farm Fresh operates dairy farms in Malaysia and Australia with a herd size of over 13,000 cows, and owns processing facilities in Johor, Pahang and Perak in Malaysia, as well as in Australia and the Philippines.

Shares of Farm Fresh rose one sen, or 0.36%, to close at RM2.79 at the midday break on Thursday, valuing the group at RM5.24 billion. The stock has gained 69% over the past 12 months.