Farm Fresh announced its financial results for the third quarter ended 31 December 2022 (Q3FY2023).
For the quarter under review, the Group achieved an overall improvement across the board with revenue, PBT as well as PATAMI registering growth of 39.0%, 41.6% and 63.8% respectively from RM116.7 million, RM14.4 million and RM11.5 million as compared to the same quarter of the corresponding year. The positive performance is a reflection of the strong contribution from the Malaysia operations which saw a 40.0% increase in operating profit as compared to Q3FYE2022. The overall results were accredited to positive sales momentum following the successful launch of several new products along with the School Milk Program which further bolstered the Group’s financials.
On a year-on-year basis, Farm Fresh reported an increase in both its profit before tax (PBT) and profit after tax and minority interests (PATAMI) by 55.1% and 67.8% to RM20.4 million and RM18.8 million respectively while delivering comparable revenue from the previous quarter. This improvement was attributed to the higher Malaysian gross profit margin of 27.7% compared to the 27.0% recorded in the previous quarter, as well as the reversal of ESOS expenses in the current quarter, lower selling and distribution expenses and higher fair value gain on valuation of biological assets as compared to the preceding quarter.
For the cumulative nine months (“9MFYE2023″), the Group reported a revenue growth of 25.3% to RM468.3 million as compared to 9MFYE2022. The increase was mainly contributed by the higher sales of RTD milk products, especially under the school milk program as well as positive impact from launch of new products. The Group also recorded 17.3% higher gross profit to RM116.9 million from the RM99.7 million recorded in the corresponding period. On a normalised basis, Farm Fresh reported an increase of 1.2% in PATAMI to RM49.0 million.
Farm Fresh Group MD and Group CEO Loi Tuan Ee statement said, “As part of our expansion and business diversification, the Group has also announced its intent to acquire The Inside Scoop Sdn Bhd which we believe will pave way for Farm Fresh’s entry into one of the fastest growing artisanal ice creameries and largest home-grown ice-cream chains in Malaysia. We intend to leverage on the competency and experience of the founders who will help spearhead the Group’s ice cream division and lead our foray into the lucrative consumer package goods ice cream market.
In addition to launching new products, we have been increasing our production capacity as well as expanding regionally. With the expected completion of our Taiping processing plant in March, we will be able to free up capacity in our Larkin processing plant which will then allow us to export to Singapore. Singapore has been a strong growing market for Farm Fresh over the last 3 years. We have also ventured into Philippines with a secured site for our processing plant which is targeted to be operational in the second quarter of 2023.
These expansion plans mark bigger opportunities for the Group in existing and new markets that we intend to capture which will generate long term value to our various stakeholders.
