KUALA LUMPUR: Farm Fresh Bhd

said it is making significant progress with its expansion initiatives while addressing the elevated input and operating costs arising from the ongoing conflict in the Middle East.

In a statement, group managing director and CEO Loi Tuan Ee said the company has responded proactively through selective pricing adjustments, alternative sourcing strategies and operational efficiency initiatives to mitigate these cost pressures. 

"Particularly relating to usage of diesel, which a lot of our sites are heavily dependent on, we have started with our Muadzam Shah farm to use LNG which will halve our fuel cost as compared to using diesel, not to mention the positive impact on reducing pollution and greenhouse gas emissions," he said.

In the first quarter ended June 30, 2026, Farm Fresh posted a net profit of RM26.82mil, which was lower than RM32.8mil in the year-ago quarter. 

Quarterly revenue rose to RM306.37mil from RM260.58mil in the previous comparative quarter, underpinned by the stronger Malaysian revenue due to higher mini market and e-commerce sales paired with the higher exports to Cambodia and improved sales in the Philippines.

The group explained that the lower profit resulted from higher distribution costs in line with the increase in exports to Cambodia and Philippines, higher salary costs associated with the increased headcount along with higher finance expenses incurred due to the drawdown of its Sukuk programme. 

"Looking ahead, while geopolitical uncertainties and elevated input costs are expected to remain as near-term challenges, we are confident that the proactive measures which we have implemented, together with the continued expansion of our regional operations, production capacity and product portfolio, will continue to strengthen the group's long-term growth prospects and support progressively stronger financial performance," said Loi.