Farm Fresh Bhd began FY27 on a weak note after profit after tax (PAT) fell 19.3% year-on-year to RM26.8 million in the first quarter ended June 30, 2026, as higher distribution, staffing and financing costs eroded earnings.
Revenue, however, rose 17.6% to RM306.4 million from RM260.6 million a year earlier, supported by stronger mini-market and e-commerce sales in Malaysia, higher exports to Cambodia and improved sales in the Philippines.
Gross profit increased 8.2% to RM93.6 million, although the gains were outweighed by higher distribution costs, increased salary expenses and greater finance costs from drawdowns under the group’s Sukuk programme.
Group Managing Director and Chief Executive Officer Loi Tuan Ee said Farm Fresh has introduced selective price increases, alternative sourcing and efficiency measures to cushion elevated fuel and raw material costs linked to Middle East supply chain disruptions.
The group has also begun replacing diesel with liquefied natural gas at its Muadzam Shah farm, which is expected to generate annual fuel savings of RM4 million to RM5 million. Similar initiatives are planned for Taiping and Larkin.
Farm Fresh is continuing its regional expansion, with its Cambodia manufacturing facility expected to commence operations in October 2026, while its Philippines business continues to record stronger sales.
Its Bandar Enstek facility is also nearing completion and is expected to increase production capacity across ice cream, beverages and other consumer products.
The group expects elevated input costs and geopolitical uncertainties to remain near-term challenges, but said pricing measures, new capacity and regional expansion should support improved performance in the coming quarters.
