Corporate Finance Assignment
Corporate Finance Assignment
Corporate Finance Assignment
BWFM5013
Assignment 1
TABLE OF CONTENT
company………………………………………………….1
4.0 The revenue or sales the company made during the year and its growth
rate…………2
business……………………………….2
6.0 The net profit the company made during the year and its growth rate………………2
0
9.0 The net cash flow change during the
year……………………………………………….3
pandemic…………………………………………………………………………………3
11.0 References………………………………
……………………………………………….4
12.0 Appendices………………………………
………………………………………………5
Farm Fresh Berhad owners Loi Tuan Ee and Kin bought sixty Australian cows in 2009. They
then started a small dairy farm in Mawai, Johor, to sell milk in Malaysia. They made sure the
foods had no artificial preservatives, colorings, or flavourings and were delivered fresh to the
shop shelves. This gave the local dairy brand an edge against international brands, many of
which used powdered or reconstituted milk. With Khazanah National Berhad funding, Farm
Fresh Berhad expanded its manufacturing capacity and product selection. Farm Fresh
Berhad's fresh milk products enabled these developments. They created a "home dealer
system" to designate rural Malaysian microentrepreneurs as stockists, dealers, and agents of
our goods. This appointment gave microentrepreneurs revenue and let us reach Malaysia's
most rural places. Farm Fresh Berhad produces dairy vertically. Farm Fresh, Master Barista,
Henry Jones, Yarra Farm, Yarra by Farm Fresh, and Nubian Goat's Milk run six dairy farms
and three processing facilities in Malaysia and Australia and sell 135 SKUs. Our brands
include Nubian Goat's Milk. They sell sauces, plant-based items, ready-to-drink (RTD)
products, chilled and ambient products, and chilled and ambient yoghurt. Farm Fresh Berhad
1
was the first Malaysian firm to develop kurma milk, organic milk, lactose-intolerant milk, oat
milk, and almond milk. The company's strong R&D made this feasible. Farm Fresh Berhad
meets evolving customer demands. After beginning as a homegrown upstart and becoming
Malaysia's biggest integrated manufacturer of dairy products manufactured from fresh raw
milk, the company's current emphasis is on boosting production capacity and capabilities.
They can reach more Asian markets and provide dairy products as nature intended to more
customers.
4.0 The revenue or sales the company made during the year and its growth rate
Farm Fresh Berhad made a sale of RM501,921,211 in 2022 after the sales of
RM490,498,015.
2
other hand, the company have a negative score, this indicates that their sales and revenues are
going down. Additionally, it serves as a warning to take preventative action before it is too
late. In this instance, Famr Fresh Berhad is working to develop an increase in the income that
they bring in.
6.0 The net profit the company made during the year and its growth rate.
The firms earns RM77,105,262 net profit for the year of 2022 and RM42,889,714 in 2021.
Net profit growth rate = (Net profit 2022/ Net profit 2021)/ Net profit 2021
= (RM77,105,262/RM42,889,714)/RM42,889,714
= 79.76%
The growth rate of Farm Fresh Berhad net profit from 2021 to 2022 is 79.76%. Such rate
shows the firm has been successful in generating a profit.
3
Changes in fixed assets in 2022 = RM480,311,036 - RM416,672,772
= RM63,638,264
RM63,638,264 fixed assets are increased during the year of 2022. A greater fixed asset
turnover ratio implies that a firm has efficiently utilised investments in fixed assets to
produce revenue. This may be inferred from the fact that the ratio is higher.
10.0 The challenges and effects faced by the company during 2020/2021 COVID-19
pandemic
As addition, in a timely response to COVID-19 and the devastation it caused to families and
communities over the course of the preceding year, Farm Fresh berhad initiated a
humanitarian initiative. As a result of a donation of RM500,000 made to Yayasan Didik
Negara (YDN) and an additional RM360,000 from public donations that we facilitated via
company website, they were able to assist students who had lost parents as a result of the
pandemic by providing the financial support that they require to continue their education in
spite of mounting difficulties. This allowed them to assist students who had lost parents as a
result of the pandemic. These two gifts were from members of the general public.
When the COVID19 pandemic first started to spread at the beginning of the year 2020, the
first Movement Control Order (often abbreviated as "MCO") was issued in the middle of
March of the same year. Because of this, customers started stocking up on necessities for the
home, which led to an increase in demand that was most visible in the sales of the UHT and
ambient milk products during the fiscal year 2021. This has resulted in lower sales figures
across the board for all of their products as the pandemic has lasted into FY2022. There has
been a natural drop as buying behaviour has returned to normal, and this has been reflected in
lower sales statistics across the board. The Group was able to create a solid performance in
FY2022, despite the lengthy COVID-19 pandemic, with total sales of RM501.9 million, an
EBITDA of RM104.1 million, and a PATAMI of RM79.9 million. This was accomplished
despite the fact that the pandemic was caused by COVID-19. This exemplifies the Group's
determination in the face of challenges. After then, the total quantity of goods that was
available increased by RM13.8 million. This was primarily due to the fact that a bigger
proportion of ingredients were kept in reserve as a buffer in order to guard against the chance
of COVID-19 interrupting the supply chain. This was done in order to defend against the risk
of COVID-19 disrupting the supply chain.
11.0 References
4
(N.d.). Bursamalaysia.com. Retrieved February 10, 2023, from
https://www.bursamalaysia.com/market_information/announcements/comp
any_announcement/announcement_details?ann_id=3279667
Bloomenthal, A. (2007, February 5). Gross profit margin (GP): Formula for how to
https://www.investopedia.com/terms/g/gross_profit_margin.asp
Kenton, W. (2008, April 13). Fixed asset turnover ratio explained with examples.
Investopedia. https://www.investopedia.com/terms/f/fixed-asset-
turnover.asp
Cash flow vs. Profit: What’s the difference? (2020, April 21). Business Insights Blog.
https://online.hbs.edu/blog/post/cash-flow-vs-profit
12.0 Appendices
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