Farm Fresh Revenue Exceeds RM1 Billion Milestone as Net Profit Rises to RM129.6 Million
KUALA LUMPUR: Farm Fresh Berhad achieved a major financial milestone after its annual revenue surpassed RM1 billion for the first time since the company was listed in 2022.
For the financial year ended March 31, 2026, the dairy producer posted a net profit of RM129.61 million, compared with RM106.40 million recorded in the previous financial year.
Group revenue also climbed to RM1.12 billion from RM981.18 million previously, reflecting continued growth in demand across several key markets.
In a filing with Bursa Malaysia, Farm Fresh said the strong performance was mainly driven by higher sales in Malaysia and continued expansion across its distribution channels.
The company stated that sales through mini-markets, e-commerce platforms and school milk programmes contributed significantly to revenue growth during the financial year.
Export growth to Cambodia and stronger sales momentum in the Philippines also supported the company’s improved financial performance.
Farm Fresh added that new product introductions, including Butter, AusFresh and Farm Fresh Full Cream Milk Powder, generated encouraging contributions to overall sales growth.
Domestic operations remained the company’s largest contributor, with Malaysian revenue increasing by 20.4 per cent, equivalent to an additional RM179.40 million compared with the previous year.
However, the group’s operations in Australia recorded a 44.9 per cent decline in revenue due to lower export shipment volumes.
For the fourth quarter of FY2026, Farm Fresh posted a slightly lower net profit of RM27.90 million compared with RM28.35 million recorded during the same quarter a year earlier.
The company attributed the softer quarterly earnings mainly to higher distribution costs and increased staffing expenses linked to ongoing business expansion.
Despite the decline in quarterly profit, fourth-quarter revenue still rose to RM275.12 million from RM243.73 million previously.
At the same time, Farm Fresh highlighted growing concerns over geopolitical instability in West Asia, which has disrupted global supply chains and affected production costs.
According to the company, the escalation of conflict in the region disrupted key shipping routes and affected supplies of raw materials required for plastic bottle production.
The blockade of the Strait of Hormuz created shortages of high-density polyethylene (HDPE) resin used in the company’s plastic packaging, leading to higher bottle prices and supply difficulties.
The disruption affected production of Farm Fresh’s flagship one-litre and two-litre fresh milk products packaged in plastic bottles.
To manage the situation, the company increased production of gable-top paper carton packaging to reduce reliance on plastic bottles.
Farm Fresh also collaborated with suppliers to source HDPE resin from China, allowing bottle supplies to gradually return to normal levels beginning May 2026, although at higher costs.
To offset rising operational expenses, the company announced price adjustments of about three per cent for selected plastic bottle products in Malaysia.
Meanwhile, prices for selected products in Singapore will increase by approximately 10 per cent starting early June.
Farm Fresh said it will continue closely monitoring global economic developments and international supply chain conditions to ensure operational stability and uninterrupted product supply for consumers.
