Farm Fresh Berhad’s FY2025 Report: A Deep Dive into Growth and Strategic Horizons
Malaysia’s beloved dairy producer, Farm Fresh Berhad (FFB), has just unveiled its financial results for the fourth quarter ended 31 March 2025 (Q4 FY2025) and the full financial year (FY2025). This report paints a compelling picture of robust growth and strategic expansion, firmly establishing FFB’s trajectory in the consumer market. While the company celebrated a significant milestone by surpassing the RM100 million mark in profit after tax for the full year, it also navigates a few challenges. Let’s break down the key highlights and what they mean for the company’s future.
Core Data Highlights: A Year of Impressive Performance
Farm Fresh Berhad has delivered a stellar performance for the full financial year 2025, demonstrating strong growth across its key financial metrics. The company’s strategic initiatives, including new product launches and acquisitions, have clearly paid off.
Stellar Full-Year Performance (FY2025 vs FY2024)
For the full financial year ended 31 March 2025, FFB’s performance was nothing short of impressive:
FY2025
Revenue: RM981.18 million
Gross Profit: RM315.24 million
Operating Profit: RM131.83 million
Profit Before Tax (PBT): RM115.23 million
Profit After Tax Attributable to Owners (PATAMI): RM106.40 million
Basic Earnings Per Share: 5.68 sen
Gross Profit Margin: 32.1%
FY2024
Revenue: RM810.41 million
Gross Profit: RM216.04 million
Operating Profit: RM85.01 million
Profit Before Tax (PBT): RM69.07 million
Profit After Tax Attributable to Owners (PATAMI): RM63.53 million
Basic Earnings Per Share: 3.40 sen
Gross Profit Margin: 26.7%
The Group’s full-year revenue surged by 21.1%, reaching RM981.18 million. This growth was largely propelled by a 25.8% increase in Malaysian revenue, driven by the successful launch of new products such as Farm Fresh Grow, Choco Malt, Full Cream Milk Powder, CPG ice cream, and butter. Contributions from recent acquisitions like Inside Scoop (acquired May 2023) and Sin Wah (acquired November 2023) also played a significant role.
Gross profit saw an even more impressive jump of 45.9%, with the gross profit margin expanding from 26.7% to 32.1%. This was primarily due to a reduction in dairy raw material input costs and improved margins from Australian operations following a reduction in season farmgate prices.
Fourth Quarter Resilience (Q4 FY2025 vs Q4 FY2024)
Looking at the individual fourth quarter, Farm Fresh maintained a strong performance compared to the same period last year:
Q4 FY2025
Revenue: RM243.73 million
Gross Profit: RM77.45 million
Operating Profit: RM33.34 million
Profit Before Tax (PBT): RM29.42 million
Profit Attributable to Owners (PATAMI): RM28.35 million
Basic Earnings Per Share: 1.51 sen
Gross Profit Margin: 31.8%
Q4 FY2024
Revenue: RM215.03 million
Gross Profit: RM65.33 million
Operating Profit: RM28.60 million
Profit Before Tax (PBT): RM24.84 million
Profit Attributable to Owners (PATAMI): RM23.93 million
Basic Earnings Per Share: 1.28 sen
Gross Profit Margin: 30.4%
In Q4 FY2025, revenue increased by 13.3% to RM243.73 million. This was primarily due to higher sales in Malaysia, buoyed by new product contributions, although partially offset by a decrease in Australian revenue due to lower external sales from Goulburn Valley Creamery Pty Ltd. Gross profit also saw an 18.5% increase, with the margin improving to 31.8%, attributed to higher margin product sales and lower dairy raw material costs.
Financial Health Check: A Stable Foundation
Farm Fresh’s balance sheet as at 31 March 2025 shows continued growth in assets and equity, reflecting a healthy financial position. Total assets stood at RM1.35 billion, up from RM1.28 billion in the previous year, while total equity grew to RM728.08 million from RM692.97 million. Cash and cash equivalents remained stable at RM58.79 million. The company’s capital commitments, particularly for plant and equipment, indicate ongoing investments in expanding its production capabilities, which aligns with its growth strategies.
It’s worth noting that the company had previously paid a final single-tier dividend of 1.20 sen per ordinary share for FY2024 (totaling RM22.5 million) on 10 October 2024, and an interim single-tier dividend of 1.00 sen per ordinary share for FY2025 (totaling RM18.7 million) on 27 December 2024. However, the Board of Directors has not recommended any dividend for the current financial period under review (Q4 FY2025).
Navigating the Future: Risks and Strategic Horizons
Farm Fresh Berhad is not resting on its laurels. The company is actively pursuing several strategic initiatives to sustain its growth momentum while also addressing potential challenges.
Cultivating Future Growth: Strategic Expansion
FFB’s future prospects are underpinned by a multi-pronged expansion strategy:
- Category Expansion: The company has seen strong demand for its consumer-packaged goods (CPG) ice cream since its August 2024 launch, leading to expedited capacity expansion at its Taiping plant and anticipation for the Enstek plant completion by end-2025. New product formats for choco malt and the successful reception of full cream milk powder and butter, launched in October 2024 and February 2025 respectively, further diversify its portfolio. Cultured milk products are also on the horizon for April 2025.
- Regional Expansion: FFB’s plans to expand regionally are taking shape in the Philippines, with factory operations commencing in late September 2024. Chilled, UHT, and milk powder products are now listed in modern trade outlets across Greater Manila, and key HORECA accounts have been secured.
- Farm Expansion: The Muadzam Shah farm expansion, with an additional 500 acres of leased land, has begun operations with the arrival of 1,300 dairy cows in May 2025. Upon full completion, the total capacity in Muadzam Shah is set to double to 6,000 dairy cows, ensuring a robust supply chain.
- ESG Initiatives: Farm Fresh is committed to its Environmental, Social, and Governance (ESG) agenda. The biogas plant, commissioned in April 2024, is targeted to reduce 9,800 tonnes of carbon dioxide equivalent (tCO2e) annually and displace 670,000 litres of diesel usage. The “Milk on Tap” initiative, offering fresh milk in reusable glass bottles, has expanded to 29 locations across Peninsular Malaysia, showcasing a commitment to sustainability.
Navigating the Headwinds: Key Challenges
Despite the positive outlook, Farm Fresh faces certain challenges:
- Australian Operations: The Australian segment experienced a decrease in revenue, primarily due to lower external sales from Goulburn Valley Creamery Pty Ltd. This was notably impacted by a postponement of deliveries to the Middle East to Q1 FY2026 and higher production costs in Q4 FY2025. While Australian margins are improving due to reduced farmgate prices, this segment will require careful monitoring.
- Legal Dispute: The Group is currently involved in a legal action in Australia against Shepparton Partners Collective Group (SPC) regarding alleged misrepresentations during a business acquisition. While the court initially dismissed FFB’s action in April 2025, the Group has lodged an appeal. The outcome of this appeal will be a key factor to watch.
Summary and
Farm Fresh Berhad’s FY2025 results underscore a period of significant growth, driven by successful product diversification, strategic acquisitions, and an aggressive expansion into new markets and production capacities. The company’s commitment to ESG initiatives also positions it favorably for long-term sustainability and brand appeal. While the dip in Australian revenue and the ongoing legal dispute present areas for attention, the overall trajectory remains positive, with a clear vision for sustained momentum into FY2026.
Key risk points to monitor moving forward include:
- The performance and profitability of the Australian operations, particularly in light of external sales fluctuations and production costs.
- The outcome of the ongoing legal appeal in Australia against SPC, which could have financial implications.
The company’s strategic investments in expanding its production capabilities, launching new products, and venturing into new regional markets like the Philippines demonstrate a proactive approach to securing future growth. The focus on sustainability through initiatives like the biogas plant and “Milk on Tap” further strengthens its market position and brand value.
