KUALA LUMPUR (Aug 28): Farm Fresh Bhd (KL:FFB) reported another decline in the recently-ended quarter as rising expenses linked to the Iran War outweighed record revenue from export sales.

Elevated input costs remain as near-term challenges for the company that sells everything from fresh milk to butter, chief executive Loi Tuan Ee said in a statement. Still, Farm Fresh is optimistic recent efforts, including price increases and product line expansion, will pay off, he noted.

“We are confident that the proactive measures implemented…will continue to strengthen the group's long-term growth prospects and support progressively stronger financial performance,” Loi said.

Net profit for the three months ended June 30, 2026 (1QFY2027) was RM26.82 million, a decline of 18% when compared to the same quarter a year earlier, due to higher costs of fuel and plastic bottle.

The company also booked higher distribution costs from exports to Cambodia and the Philippines, as well as surging staff costs with more management personnel and higher headcount to support new Inside Scoop outlet openings.

Revenue, however, rose 18% year-on-year to a new record of RM306.37 million fuelled by orders from mini markets and e-commerce in Malaysia along with higher exports to Cambodia and stronger sales in the Philippines.

To protect margins, Farm Fresh raised prices for its selected plastic-bottled products by about 3% in Malaysia and around 10% in Singapore beginning June.

The full impact will only be felt in the September-end quarter, while prices of fuel and plastic resin have “stabilised and we have started to see some easing in recent months, so that is a positive for us and the consumer market in general”, Loi added.

No dividend was announced.

Shares of Farm Fresh rose three sen or 1.5% to RM2.05, valuing the company at RM3.9 billion ahead of the results announcement.