Farm Fresh Bhd Reports Strong Q2 Earnings, Highlights Expansion Plans

Q2 Net Profit Surges 40 %

Farm Fresh Bhd (KL:FFB) announced a 40.06 % increase in net profit for the quarter ended 30 September 2025, reaching RM36.67 million from RM26.18 million in the same period a year earlier. The rise was driven by higher sales of school‑milk and mini‑market products, a favourable product mix, and a rebound in Australian operations.

An additional one‑off gain of RM1.9 million from the disposal of Australian farm assets held for sale contributed to the operating profit uplift.

Sales Growth and New Market Contributions

  • Domestic sales increased by 18.37 % to RM2.49 billion.
  • Philippines sales grew, adding to the overall revenue increase.
  • Cambodia export sales expanded, supporting the quarter‑over‑quarter revenue rise.

Farm Fresh’s cumulative profit for the first half of the financial year stood at RM69.46 million, up 33.13 % YoY, while revenue for the six‑month period rose 13.17 % to RM555.54 million.

Ice‑Cream Business Expansion

Farm Fresh has invested in a dedicated ice‑cream outlet, The Inside Scoop, and operates a second brand, Sin Wah, known for its snow‑bar products. The ice‑cream segment contributed 10 % of total revenue in FY 2025. Production capacity is set to increase from the current 30 000 units per day at the Lightning factory to 100 000 units per day with the completion of a new plant in Enstek, expected to start full operations by March 2026.

Strategic Focus on Southeast Asia

Chief Executive Officer Ray Tan has outlined a strategic focus on the Philippines and Cambodia, targeting markets with populations exceeding 1 billion. In the Philippines, the company plans to acquire 4000–5000 dairy cows on a potential 500‑acre lease. In Cambodia, it is negotiating with local partners for suitable farm and factory sites, leveraging government support to secure supply chain stability.

The company estimates capital expenditure for the next two years at MYR 300 million to 400 million, covering animal‑herd expansion, new manufacturing facilities, and market development initiatives.

Share Price Performance

  • Closing price (24 Nov 2025): MYR 2.56, up MYR 0.14 (5.79 %) with a 52‑week range of MYR 1.60–2.58.
  • Closing price (26 Nov 2025): MYR 2.59, up MYR 0.04 (1.57 %) on a volume of 203,917 shares.
  • The stock remains in an uptrend, with short‑term resistance near MYR 2.75–2.80 and support at MYR 2.48–2.53.

The price‑earnings ratio as of 26 Nov 2025 is 42.9×, and the dividend yield stands at 0.39 %.

Outlook

Farm Fresh’s record Q2 earnings, combined with successful expansion into new markets and the growth of its ice‑cream business, underpin a bullish outlook for the company’s 2026 financial performance. The firm remains optimistic about its 2026 targets and continues to pursue growth opportunities across Malaysia, the Philippines, and Cambodia.