KUALA LUMPUR (May 9): Farm Price Holdings Bhd, which will be listed on the ACE Market next Tuesday (May 14), announced net profit of RM2.67 million on revenue of RM30.71 million for the first quarter ended March 31, 2024 (1QFY2024).

The Johor-based vegetable wholesaler’s net profit would have been RM3.02 million excluding listing expenses of RM480,000, while its adjusted net margin was 9.82% compared with 8.65% (inclusive of listing costs).

Its wholesale distribution segment accounted for 91.14% of the total quarterly revenue, while the retailing segment contributed 8.86%.

There are no comparative figures for the preceding corresponding quarter as this marks the first interim financial report in accordance with ACE Market listing requirements.

Farm Price’s initial public offer has been oversubscribed 91.35 times by the Malaysian public at 24 sen per share, valuing the company at RM108 million.

Farm Price is mainly involved in the wholesale and distribution of fresh vegetables. The company also operates a retail store in Ulu Tiram, Johor, selling fresh vegetables, together with food and beverages products and other groceries, directly to end-consumers.

Looking ahead, Farm Price will focus on expanding the centralised distribution centre by building up a new operational building, expanding of value-added processing area, purchase of new machinery and equipment as well as increase the numbers of transportation fleet to accommodate the higher market demand.

Besides, the group will also set up additional regional distribution centres in Pahang and Negeri Sembilan, as well as a sales and marketing office in Singapore to secure new customers.

“Premised on the above, the group’s prospects remain positive taking into consideration the group’s competitive advantages, business strategies and favourable market opportunities in the fresh vegetable industry,” it added.