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Thursday, 04 March 2021

PPB GROUP ACHIEVED RM1.42 BILLION PRE-TAX PROFIT IN 2020 AND RECOMMENDS FINAL AND SPECIAL DIVIDENDS

 FINANCIAL HIGHLIGHTS OF FY2020

  • PPB Group revenue declined by 11% to RM4.19 billion in FY2020 (FY2019 : RM4.68 billion) mainly attributed to lower revenue from Film exhibition and distribution
  • Group pre-tax profit of RM1.42 billion was 12% higher than FY2019 of RM1.27 billion mainly due to higher profit contribution from our 18.6% associate, Wilmar International Limited (Wilmar) which contributed RM1.24 billion for FY2020 (FY2019 : RM960 million). Core group profit was, however, lower by 43%.
  • Profit after tax for FY2020 was RM1.36 billion and earnings per share was 92.57 sen.

PROPOSED SPECIAL AND FINAL DIVIDENDS TOTALING 38 SEN PER SHARE
PPB’s Board has recommended a final dividend of 22 sen per share and a special dividend of 16 sen per share for FY2020 subject to approval by PPB shareholders at the 52nd Annual General Meeting to be held on 11 May 2021.  The final and special dividends are payable on 1 June 2021 to shareholders whose names appear in the Record of Depositors on 17 May 2021.

Together with the interim dividend of 8 sen per share, the total dividend paid and payable for FY2020 would be 46 sen per share (FY2019 : 31 sen per share).

REVIEW OF OPERATIONS
The results of PPB’s business operations for 2020 are summarised as follows :-

  • Revenue from the Grains and agribusiness segment was relatively unchanged at RM3.29 billion (FY2019 : RM3.3 billion).  Segment profit increased by 28% to RM272 million (FY2019 : RM213 million) mainly attributable to lower raw material costs and higher share of profits from its associates.
  • Consumer products segment revenue remained unchanged at RM628 million (FY2019 : RM627 million).  Segment profit was higher at RM32 million (FY2019 : RM647,000) due mainly to a one-off gain on step-acquisition of an associate of RM21 million and better performance at the bakery division.
  • Segment results of Film Exhibition and Distribution were significantly impacted by reduced admissions, intermittent closure of cinemas and deferment of movie titles during the year as the country fought the Covid-19 pandemic through the Movement Control Order (“MCO”).  Film Exhibition and Distribution segment incurred a loss of RM136 million for FY2020 (FY2019 : RM67 million profit).
  • Environmental engineering and utilities segment revenue was lower by 3% at RM190 million (FY2019 : RM195 million).  Profit was higher by 28% at RM14 million (FY2019 : RM11 million) mainly attributable to share of profit from joint venture as a one-time impairment of an overseas joint venture of RM8.9 million was made in FY2019.  Excluding that, performance was also affected by slower project activities due to the imposition of MCO during the year.
  • Property segment recorded revenue and profit of RM67 million (FY2019 : RM65 million) and RM4 million (FY2019 : RM14 million) respectively due to lower rental income and the absence of a one-time gain on disposal of property of RM4.7 million in FY2019.

PROPOSED ACQUISITION OF CINEMA ASSETS
On 23 February 2021, Golden Screen Cinemas Sdn Bhd (GSC) signed an Asset Sale Agreement to acquire the majority of cinema assets from MCAT Box Office Sdn Bhd and Reel Entertainment Holdings Sdn Bhd (both in creditors’ voluntary winding up), operators of the former MBO cinema circuit.  The acquisition is expected to complete by end of June 2021.

This strategic acquisition will help accelerate growth and strengthen the market leadership position of GSC moving forward.

PROSPECTS FOR 2021
The Grains and agribusiness segment is expected to weather the volatile commodities market. The segment, which is in the business of production and distribution of staple food, is expected to perform satisfactorily, riding on its strong technical competency, extensive marketing and distribution network as well as in-depth procurement experience.

The Consumer Products segment is expected to perform satisfactorily as the Group endeavours to expand sales into the food service channel and e-commerce marketplace.  

The Film exhibition and distribution segment performance will be weighed down by intermittent cinema closures, operating in reduced seating capacity due to strict adherence to maintaining social distancing, and deferment of movie titles releases.  Management is confident that the movie industry will start to recover as the Covid-19 cases are brought under control and after the planned rollout of the vaccination programme in February 2021. We remain resilient during this transitory period and continue to work on revenue diversification and cost optimisation initiatives, in addition to stringent cash flow management.

The Environmental engineering and utilities segment will continue to focus on replenishing its order book and exploring new project opportunities.

Performance of the Property segment remains challenging, both in the area of investment properties and property development. Management will continue to work on various initiatives to improve footfall in our malls as well as to increase sales of our development properties.

The Covid-19 pandemic will continue to weigh on our Film exhibition and distribution and Property segments. The other main business segments, which are mainly in the production and distribution of staple food and services, are expected to perform satisfactorily. Wilmar's performance will continue to contribute substantially to the overall profitability of the Group.

 

Contact :-
Ms Koh Mei Lee, Head of Corporate Affairs of PPB Group Berhad
Telephone : 012-2062831
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

Friday, 04 September 2020

PPB Group achieved higher pre-tax profit of RM591 million, up 28% compared with 1H2019

 FINANCIAL HIGHLIGHTS FOR 1H2020

  • PPB Group revenue decreased by 12% to RM2.02 billion in 1H2020 as lower revenue was recorded by all core group segments.
  • Group pre-tax profit increased by 28% to RM591 million compared with RM461 million for 1H2019, mainly attributable to higher contribution from Wilmar International Limited at RM447 million compared with RM310 million recorded in 1H2019. Core group profit was however, lower by 4.8%.
  • Profit for the period was higher at RM552 million, up 29% compared with RM428 million recorded in 1H2019.  Earnings per share was at 36.5 sen, 27% higher compared with 1H2019 of 28.7 sen.

DIVIDEND
PPB has declared an interim dividend of 8 sen per share for the financial year ending 31 December 2020 payable on 29 September 2020 to shareholders whose names appear in the Record of Depositors on 11 September 2020.

REVIEW OF OPERATIONS
The results of PPB’s main business operations for 1H2020 are summarised as follows :-

  • Grains & Agribusiness segment revenue for 1H2020 decreased by 3% to RM1.59 billion due to lower sales volume of flour and feed. Segment profit increased to RM181 million compared with RM85 million in 1H2019 mainly attributable to higher efficiency and better management of raw material costs.
  • Consumer Products revenue for 1H2020 remained stable at RM326 million. Segment profit improved to RM10 million for 1H2020 compared with RM3 million in 1H2019 mainly due to improved performance at the bakery division.
  • Film Exhibition & Distribution revenue declined significantly by 71% to RM80 million and recorded a loss of RM61 million compared with a profit of RM39 million in 1H2019. The performance of this segment was significantly impacted by the closure of the cinemas during the Movement Control Order (“MCO”) period up to 30 June 2020.
  • Environmental Engineering & Utilities registered lower revenue of RM58 million, down 18% due to work delay during the MCO period. Segment profit remained stable at RM7 million.
  • Property segment revenue decreased by 23% to RM22 million. The segment recorded a loss of RM4 million compared to a RM11 million profit previously, mainly attributable to lower mall-related rental income during the MCO period.

PROSPECTS FOR 2020

The Grains and Agribusiness segment weathered a challenging operating environment, with volatility in grain prices and foreign exchange market. Given this segment is in the production and distribution of essential food products, it has not been significantly impacted by the Covid-19 pandemic and is expected to perform satisfactorily in the second half of 2020.

The Consumer Products segment endeavours to maintain the momentum of sales by focusing on food services and other channels via the e-commerce marketplace. The segment is expected to perform satisfactorily in 2H2020.

The Film Exhibition and Distribution segment continues to be affected by the Covid-19 pandemic as most movie title releases were deferred to 2021.  Management will continue to implement cost optimisation measures and stringent cash flow management to deal with the current operating environment.

The Environmental Engineering and Utilities segment will continue to focus on replenishing its order book and exploring new project opportunities.

Performance of the Property segment also remains challenging, both in investment properties and property development. Various measures are being taken to address the reduced footfall in our malls as well as slower sales of properties.

The Covid-19 pandemic continues to weigh on our Film Exhibition and Distribution and Property segments; the other main business segments, which are mainly in the production and distribution of essential products and services, are expected to perform satisfactorily. Wilmar's performance will continue to contribute substantially to the overall profitability of the Group.

Friday, 28 February 2020

PPB GROUP ACHIEVED RM1.27 BILLION PRE-TAX PROFIT FOR YEAR 2019 AND RECOMMENDS HIGHER DIVIDENDS

FINANCIAL HIGHLIGHTS OF YEAR 2019

  • PPB Group revenue rose 3% to RM4.68 billion in FY2019 (FY2018 : RM4.53 billion) mainly attributed to higher revenue recorded from Grains and agribusiness; Film exhibition and distribution; and Property segments.
  • Group pre-tax profit of RM1.27 billion was 9% higher than FY2018 of RM1.17 billion mainly due to higher profit contribution from our 18.5% associate, Wilmar International Limited (Wilmar) which contributed RM960 million for FY2019 (FY2018 : RM837 million); and higher profits from Grains and agribusiness
  • Profit after tax for FY2019 was RM1.2 billion and earnings per share was 81.02 sen.

DIVIDEND
PPB’s Board has recommended a final dividend of 23 sen per share for FY2019 subject to approval by PPB shareholders at the 51st Annual General Meeting to be held on 14 May 2020.  The final dividend is payable on 2 June 2020 to shareholders whose names appear in the Record of Depositors on 18 May 2020.

Together with the interim dividend of 8 sen per share, the total dividend paid and payable for FY2019 would be 31 sen per share (FY2018 : 28 sen per share).

REVIEW OF OPERATIONS
The results of PPB’s business operations for 2019 are summarised as follows :-

  • Revenue from the Grains and agribusiness segment was up by 5% to RM3.3 billion (FY2018 : RM3.15 billion) mainly attributable to higher flour prices. Segment profit increased by 17% to RM213 million (FY2018 : RM183 million) mainly due to higher flour prices, partially offset by higher raw material costs.
  • Consumer products segment revenue was lower by 2% at RM 627 million (FY2018 : RM641 million). Segment profit was lower at RM647,000 (FY2018 : RM7 million) due mainly to lower sales of in-house products and higher operating costs at the bakery division.
  • Revenue from the Film exhibition and distribution segment rose by 2% to RM556 million (FY2018 : RM545 million) whilst segment profit maintained at RM67 million in (FY2018 : RM67 million). The higher revenue was driven by improved F&B sales and advertising income.  Despite higher revenue, profit was offset by higher operating costs.
  • Environmental engineering and utilities segment revenue and profit were at RM195 million (FY2018 : RM205 million) and RM11 million (FY2018 : RM21 million) respectively. The lower profit was mainly due to one-off impairment of an overseas joint venture.
  • Property segment revenue went up by 14% to RM65 million (FY2018 : RM57 million) whilst segment profit was lower by 57% to RM14 million (FY2018 : RM32 million). The decline in segment profit was mainly attributable to the lower share of profit from an associate.

PROSPECTS FOR 2020
Grains and agribusiness segment is expected to perform satisfactorily supported by our well established market position and technical strength in maintaining good and consistent quality products, riding also on the fact that demand for essential basic food products will remain resilient in any economic environment, despite volatile grains commodity and foreign exchange market conditions.  The Consumer products segment is expected to be stable with support of new agency products.  While the Film exhibition and distribution segment is expected to be impacted by disruptions from the Covid-19 outbreak in the first quarter of the year, this segment is well positioned to maintain its market leadership with the full year performance of new cinemas opened in 2019 and strong lineup of new titles.  The Environmental engineering and utility segment will continue to focus on replenishing its order book and exploring new project opportunities.  The Property segment will continue to execute its existing projects and improve yield of its existing investment properties.

While the overall Group financial results depend substantially on Wilmar's business performance, the Group’s main business segments are expected to perform satisfactorily in financial year 2020.

 

Contact :-
Ms Koh Mei Lee, Head of Corporate Affairs of PPB Group Berhad
Telephone : 03-27260088
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

Wednesday, 04 September 2019

PPB GROUP REGISTERED LOWER PRE-TAX PROFIT OF RM461 MILLION COMPARED WITH 1H2018

 FINANCIAL HIGHLIGHTS FOR 1H2019

  • PPB Group revenue increased by 4% to RM2.31 billion in 1H2019. The increase was attributed to higher revenue from the Grains & Agribusiness and Film Exhibition & Distribution
  • Group pre-tax profit decreased by 15% to RM461 million compared with RM546 million for 1H2018, mainly due to lower contribution from Wilmar International Limited, and lower profits from the Grains & Agribusiness, Consumer Products and Environmental Engineering & Utilities
  • Profit for the period was lower at RM428 million, down 16% compared with RM507 million recorded in 1H2018. Earnings per share was at 28.71 sen, 17% lower compared with 1H2018 of 34.72 sen.

 

DIVIDEND

PPB has declared an interim dividend of 8 sen per share for the financial year ending 31 December 2019 payable on 2 October 2019 to shareholders whose names appear in the Record of Depositors on 17 September 2019.

 

REVIEW OF OPERATIONS

The results of PPB’s main business operations for 1H2019 are summarised as follows :-

 

  • Grains & Agribusiness segment’s revenue for 1H2019 increased by 6% to RM1.63 billion due to higher flour sales. Segment profit decreased by 14% to RM85 million mainly due to weaker performance of the feed division.
  • Consumer Products segment revenue for 1H2019 remained stable at RM332 million. Segment profit declined by 62% to RM3 million for 1H2019 mainly due to lower sales of in-house products; and higher operating costs at the bakery division.
  • Film Exhibition & Distribution segment revenue was up 8% to RM274 million whilst segment profit increased 34% to RM39 million due to higher contribution from the distribution of Chinese New Year movies and local Malay titles as well as release of strong titles.
  • The Environmental Engineering & Utilities registered lower segment revenue and profit of RM71 million and RM7 million respectively compared with 1H2018 as several new projects are at the initial stage of implementation.
  • The Property segment revenue increased by 17% to RM29 million mainly attributable to higher progress billings from the Megah Rise project. Segment profit increased by 6% due to a one-time gain on sale of land and building of RM5 million which was offset by the lower contribution from mall operations as well as lower profit from property development.

 

CAPITAL AND OTHER COMMITMENTS

Total capital and other commitments as at 30 June 2019 amounted to RM794 million as follows :-

Segment

Amount to be spent 

(RM million)

Grains & Agribusiness

395

Film Exhibition & Distribution

379

Consumer Products

11

Environmental Engineering & Utilities

4

Property

3

Investments & Other Operations

 2

 

794

 

PROSPECTS FOR 2019

Notwithstanding a volatile commodity and foreign exchange market, the Grains and agribusiness segment will capitalise on its established market position and synergistic strategies to remain resilient. The segment is expected to perform satisfactorily. Performance of the Consumer products segment is expected to remain stable for the rest of the year. The Film exhibition and distribution segment is expected to be supported by introduction of new cinematic technology and facilities in selected locations, opening of new cinemas and strong title releases. The Environmental engineering and utilities segment will continue to focus on replenishing its order book and exploring new project opportunities. The Property segment will continue to execute its existing projects and improve yield of its existing investment properties.

 

For the current financial year, the Group's main business segments are expected to perform satisfactorily. Wilmar’s performance will continue to contribute substantially to the overall profitability of the Group.

 

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