Farm Fresh saw its revenue increase by 0.4% to RM128.1 million as compared to the corresponding period in the financial year 2021. This increase was mainly attributable to the increase in Malaysia operation’s revenue by 6.2% or RM7 million driven by the recovery of economic activities and consumer confidence, following further easing of restrictions and reopening of borders.
However, the increase has been partly offset by a reduction of Australian revenue by 46.6% or RM6.4 million due to the ceasing of raw milk sales by our Australian farm to third parties as well as the downsizing of IXL fruit jam business by its Australian subsidiary, Henry Jones Foods Pty Ltd’s.
The Group’s gross profit increased by 4.0% or RM1.5 million to RM36.7 million, with gross profit margin improving from 27.6% to 28.6%, reflecting both the sales increase and price increase of its chilled RTD milk products and ambient RTD products by an average of 5% which were implemented in September and December 2021 respectively.
As a result of the foregoing, the Group’s profit before tax increased by 16.9% or RM2.3 million, to RM16.1 million in the financial quarter ended 31 March 2022 primarily due to the aforementioned gross profit improvement and higher financial returns and interest income arising from the money market placements of the Sukuk and IPO proceeds. The Group’s profit after tax has increased by 71.1%.
For the 12 month period, the Group’s revenue increased by 2.3% from RM490.5 million in the financial year ended 31 March 2021 to RM501.9 million in the financial year ended 31 March 2022, mainly attributable to the increase in Malaysian revenue by 3.8% or RM16.8 million due to higher recruitment of new customers, higher sales of our RTD milk products and launching of new products.
Despite the sales increase, the Group’s operating profit declined by 3.2% or RM2.5 million, to RM74.9 million in the financial year ended 31 March 2022, and Group’s profit before tax declined by 2.8% or RM1.9 million, to RM65.7 million, mainly due to the gross losses and redundancy cost incurred by our Australia’s HJF IXL fruit jam operations during the year. Inflationary pressures from upward input costs such as raw materials, direct labour and overheads, animal feed and herd health cost as well as freight cost resulting from a strained supply chain have further contributed to the decline in operating profit. Apart
from that, it also incurred higher corporate professional fees in connection with our IPO exercise.
Profit after tax and PATAMI increased by 139.3% and 120.5% respectively in the financial year ended 31 March 2022 mainly due to the Additional Tax Liability of RM25,708,582 in respect of Larkin Facility for the relevant YAs from 2014 to 2020 and RM10,490,033 for YA 2021 that had been recognised during the financial year.
