The disappointing earnings report continued to deal a heavy blow to Farm Fresh shares to plunge lower today (Thursday).
After plunging more than 13% on Wednesday, Farm Fresh's share price continued its decline to a recent low of RM1.29 before paring some losses to trade at RM1.32 at the time of writing.
It is lower than the March 2022 listing price of RM1.34 per share.
Earlier, the dairy company reported its net profit declined to RM50.08 million in the 2023 financial year from RM79.89 million.
It follows an increase in input costs, including key dairy raw materials, high labor, agricultural and energy costs.
However, it recorded an increase in revenue at RM629.69 million compared to RM501.92 million previously, driven by the School Milk Program, higher sales of ready-to-drink milk products and the positive impact of new product launches.
Following the disappointing results, Maybank IB Research lowered its rating to 'hold', with the target price revised lower to RM1.60 from RM1.75.
In addition, RHB Research maintained a 'buy' call on Farm Fresh even though its target price was lowered to RM1.72 from RM1.75.
