Farm Fresh eyes regional expansion

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Farm Fresh Bhd managing director and group chief executive officer Loi Tuan Ee

KUALA LUMPUR: Farm Fresh Bhd intends to kickstart its regional expansion with its planned entry into Indonesia, the Philippines, and Hong Kong.

“In the shorter term, our immediate focus is on the Singapore market, as the completion of the Taiping processing plant will free up some capacity at our Larkin processing plant, enabling us to focus on our exports to Singapore which have already grown strongly over the last three years,” the dairy company said in a filing with Bursa Malaysia.

Farm Fresh group managing director and group chief executive officer Loi Tuan Ee said its Taiping farm and processing plant are expected to be completed by this year which will cater to the demand from the northern states of Malaysia for its chilled products.

“This, in combination with our increases in capacity at Muadzam Shah Facility, among others, will increase the group’s annual production capacity by 30 million litres in 2022.

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“The additional capacity in Muadzam Shah Facility, in particular, will alleviate some of the capacity constraints that we have currently for portion packs within the ambient category,” he said in a statement.

“Moving forward, we are excited to launch our growing up milk this September, which we hope to make great strides among young children who are in need of a good and honest dairy product in their early years,” he said.

In the first quarter ended June 30, Farm Fresh’s net profit fell 20.7% to RM15.2mil, or 0.82 sen earnings per share from RM19.2mil, or 1.17 sem a year ago.

Farm Fresh recorded revenue of RM144mil, up 6.9% increase from RM134.8mil reported in the same quarter last year.

The growth was mainly from the higher revenue from ready-to-drink milk products, in line with the encouraging sales momentum amidst the recovery of economic activities, accompanied by the launching of new products.

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