Categories: BusinessNews

Farm Fresh 3Q profits jump 8.9% on strong sales and acquisitions

FARM Fresh Bhd reported an 8.91% increase in net profit to RM20.44 million for the third quarter ending Dec 31, 2023 (3Q24), attributed to higher sales in the hotels, restaurants, and cafes (Horeca) segment, as well as increased sales of ultra-high-temperature (UHT) processed products. 

The recent acquisitions of ice cream units The Inside Scoop Sdn Bhd and Sin Wah Ice Cream Sdn Bhd also contributed to the improved quarterly profit.

Despite losses in the Australian operations, the overall quarterly revenue surged by 30.5% to RM211.62 million, up from RM162.17 million a year ago. 

For the cumulative nine months ending Dec 31, 2023 (9M24), net profit declined by 12.37% to RM39.6 million, while revenue increased by 27.13% to RM595.38 million. 

The lower 9M earnings were attributed to higher administrative costs, finance costs, and increased taxation related to acquisitions and business expansion.

Looking ahead, Farm Fresh highlighted plans for consumer packaged goods (CPG) ice cream launch in June and entry into butter and cultured milk categories. 

The company also aims to commence operations at its plant in the Philippines, focusing on chilled products, UHT products, and growing-up milk powder sales in the Greater Manila market.

Farm Fresh shares shed 1 sen or 0.7% at RM1.42 today, with a market capitalisation of RM2.658 billion. — TMR


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