Farm Fresh achieves stronger 2Q earnings

PETALING JAYA: Farm Fresh Bhd posts another strong quarter on higher profit and revenue in the second quarter ended Sept 30, 2025 (2Q25).

The homegrown dairy group recorded a 40% higher net profit of RM36.66mil compared with RM26.18mil in the same period last year.

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

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

This included its school milk and mini market sales as well as high demand for 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 supported earnings growth as robust 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 ultra-heat treatment or UHT, chilled and milk powder products.

Farm Fresh also secured many key hotel, restaurant and catering 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 its focus on innovation and 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.

To sustain the strong momentum it has in the Philippines and Cambodia, the dairy group will continue implementing strategic initiatives.

“This 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’

“We will leverage on this momentum to lay the groundwork for a permanent local presence as well as working closely with government and local partners to secure prime locations for our future facilities,” Loi said.

He noted, however, Malaysia would remain a vital growth pillar for the group.

“With these growth pillars intact, we maintain a positive trajectory for financial year 2026. We will also remain committed towards our sustainable principles, driving value through initiatives like our biogas plant and the wider rollout of our sustainable Milk on Tap programme.”

Farm Fresh declared a dividend of one sen per share.