Farm Fresh Bhd (FFB, 5306, Main Board Consumer Products & Services) recorded a net profit of RM4.89 million for the fourth quarter ended 31st March 2023, marking a 72.35% decrease compared to RM17.68 million in the same period last year.
The company’s annual net profit amounted to RM50.08 million, reflecting a decline of 37.31% from the previous year’s RM79.89 million.
The fourth-quarter revenue reached RM161.36 million, showing a 26% increase compared to RM128.06 million in the previous year.
The company’s full-year revenue stood at RM629.69 million, representing a 25.46% growth from the previous year’s RM519.21 million.
Farm Fresh to increase product prices
Due to rising costs, the company plans to raise prices by 5% for its chilled milk and specific UHT products starting in mid-July.
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In a statement, the company highlighted that the fourth-quarter revenue growth was driven by sales during the Ramadan period, the School Milk Program, and the performance of its Australian operations.
However, the increase in raw material costs and lower profit margins from the Australian business resulted in a year-on-year decline in net profit. Additionally, distribution costs, the upward adjustment of minimum wages, and foreign exchange losses also affected profitability.
Farm Fresh: Cost pressures starting to ease
Nevertheless, the company mentioned that cost pressures are starting to ease, particularly in milk raw materials and feed costs for the second half of the year.
With the commencement of production at its Taiping processing plant in June, the company expects increased production capacity and reduced logistics costs.
The company also added that the new processing line at the Muadzam Shah facility will also contribute to the production capacity while focusing on expanding operations in the Philippines.
Furthermore, the company announced that the acquisition of The Inside Scoop Private Limited, an ice cream chain, has received shareholder approval.
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