Farm Fresh posts 40% jump in 2Q profit

PETALING JAYA: Farm Fresh Bhd posted another strong quarter in the second quarter ended Sept 30, 2025, with net profit rising 40% to RM36.66mil from RM26.18mil a year earlier.

Its revenue for the quarter under review was also 18.4% higher at RM294.93mil compared to RM249.16mil.

Farm Fresh declared a dividend of one sen per share.

In a statement, Farm Fresh said stronger sales contribution from high margin products, lower cost of raw materials and the recovery market margins in Australia had boosted its earnings.

This included its school milk and mini market sales as well as robust sales from its new product range.

“The current quarter also saw a recovery for Australia with gross margins improving to 29.8% from the 15.6% recorded in the corresponding quarter, and 2.3% recorded in the previous quarter due to higher production volume leading to lower production costs,” Farm Fresh said.

Its venture into new geographical areas had also aided earnings growth as stronger contributions from the Philippines were recorded, together with its maiden revenue recognition from Cambodia.

The group entered the Philippines last September, and saw strong sales in terms of UHT, chilled and milk powder products.

Farm Fresh also secured many key HORECA accounts in Manila.

As for Cambodia, the group made its debut in August this year, and it quickly penetrated key trade channels in Phnom Penh.

Managing director and group chief executive officer, Loi Tuan Ee said the group managed to deliver another stellar quarter driven by a relentless focus on innovation and a product portfolio.

“Our plans for capacity expansion are also moving along nicely, following the commercialisation of our extended Muadzam Shah farm, which will eventually see the herd size double to over 6,000 dairy cows,” he said.

Regionally, Loi noted in order to sustain the strong momentum it has in both Philippines and Cambodia, the group will continue implementing strategic initiatives.

“Ths includes refining our operational structure to emphasise on a leaner and asset-light model to enable us with the flexibility to capture on new opportunities by leveraging on this momentum to lay the groundwork for a permanent local presence, working closely with government and local partners to secure a prime location for our future facilities,” Loi said.

He noted, however, Malaysia will remain a vital growth pillar for the group, while they continue to be an anchor for success.

“With these growth pillars intact, we maintain a positive trajectory for FY2026. We will also remain committed towards our ESG principles, driving value through initiatives like our biogas plant and the wider rollout of our sustainable Milk on Tap programme.”