KUALA LUMPUR: Farm Fresh Bhd released a set of disappointing results for its 2023 financial year, but there are expectations the worst is over for the dairy producer as it looks ahead towards an earnings recovery in the coming year.
Investment research firm RHB Research said in its results review that Farm Fresh's core net profit came in below expectations at RM57mil, a decline of 17% year-on-year, which represented 83-84% of its and consensus projections.
The research firm said the negative deviation could be attributed to weaker-than-expected gross profit margin, which was dragged lower by high production costs.
However, RHB noted that the group is increasing the selling prices of its chilled products from July onwards, which will narrow the gap with rivals that have already aggressively raised prices.
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