Investor Relations

Press Releases

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.

 

Thursday, 07 March 2019

PPB GROUP RECORDED RM1.17 BILLION PRE-TAX PROFIT FOR YEAR 2018

FINANCIAL HIGHLIGHTS OF YEAR2018

  • PPB Group revenue rose 6% to RM4.53 billion in FY2018 mainly attributed to higher revenue generated from Grains and agribusiness; Environmental engineering and utilities; and Film exhibition and distribution.
  • Group pre-tax profit of RM1.17 billion was 8% lower than FY2017 mainly due to lower profit contribution from our 18.5% associate, Wilmar International Limited (Wilmar) which contributed RM837 million for FY2018; profits from Grains and agribusiness and Consumer products segments were also lower.
  • Profit for the FY2018 was RM1.1 billion and earnings per share was 75.57 sen.

 

DIVIDENDS

A final dividend of 20 sen per share for FY2018 will be tabled for approval by PPB shareholders at the Annual General Meeting to be held on 17 May 2019. The final dividend is payable on 10 June 2019 to shareholders whose names appear in the Record of Depositors on 24 May 2019.

Together with the interim dividend of 8 sen per share, the total dividend paid and payable for FY2018 would be 28 sen per share (FY2017 : 30 sen per share).

 

REVIEW OF OPERATIONS

The results of PPB’s business operations for 2018 are summarised as follows :-

  • Revenue from the Grains and agribusiness segment was up by 5% to RM3.15 billion on the back of higher sales from all flour mills. Segment profit decreased by 6% attributable mainly to higher raw material costs.
  • Consumer products segment revenue was lower by 5% at RM 641 million mainly due to lower sales of in-house products. Segment profit was lower at RM15 million due mainly to the absence of a one-time gain on sale of land and building of RM8.0 million recorded in 2017, higher raw material costs and plant maintenance cost at the bakery division.
  • Revenue from the Film exhibition and distribution segment rose by 12% to RM538 million whilst segment profit went up by 17% to RM63 million in FY2018 mainly due to the strong performance of local Malay titles and contribution from cinemas opened in 2017
  • The Environmental engineering and utilities segment recorded higher revenue of RM205 million for FY2018, up 57% compared with FY2017. Segment profit more than doubled to RM15 million mainly attributable to progressive profits recognised from on-going water treatment plant projects.
  • Property segment revenue went up by 11% to RM53 million. Segment profit increased two-fold to RM12 million mainly attributable to higher income from project management fees and rental on completion of the Cheras LeisureMall extension.
  • Combined revenue from Investments and Other Operations was 14% lower to RM120 million. The de-consolidation of Tefel Packaging Industries Co Ltd (Tefel) upon its disposal in June 2018 contributed to the lower segment revenue.  The combined segment profit increased 57% to RM15 million mainly attributable to higher investment income and deconsolidation of the loss-making Tefel.

 

PROSPECTS FOR 2019

The Malaysian economy recorded a sustained growth of 4.7% in 2018.  The economy is expected to continue to expand on a steady growth pace in 2019.  Private sector demand, with the support of continued income and employment growth, will remain the main driver.

The Grains and agribusiness segment is expected to remain competitive on the back of a volatile commodity market and it will continue to focus on volume growth and maintaining good quality standard of our products.  The performance of the Consumer products segment is expected to remain stable, supported by a widening product range and the introduction of new products into new markets.  The Film exhibition and distribution segment will continue to be driven by strong title releases, opening of new cinemas, introduction of new cinematic technology and facilities in selected locations.  The Environmental engineering and utility segment will focus on replenishing its order book while maintaining its focus on quality work and execution.  Amidst a challenging operating environment, the Property division will focus on completing the Megah Rise project in Petaling Jaya while striving to maintain and improve operational excellence in its existing mall and property management business.

While the Group's main business segments are expected to perform satisfactorily in financial year 2019, the overall Group financial results would depend substantially on Wilmar’s business performance.

Tuesday, 04 September 2018

PPB GROUP DELIVERED HIGHER PRE-TAX PROFIT OF RM546 MILLION FOR 1H2018

FINANCIAL HIGHLIGHTS FOR 1H2018

  • PPB Group revenue increased by 7% to RM2.23 billion in 1H2018. The increase was attributed to higher revenue from the Grains & Agribusiness and Environmental Engineering & Utilities
  • Group pre-tax profit of RM546 million was 14% higher compared with RM480 million for 1H2017, mainly due to higher contribution from Wilmar International Limited, and higher profits from the Grains & Agribusiness and Environmental Engineering & Utilities
  • Net profit for the period was higher at RM494 million, up 14% compared with RM432 million recorded in 1H2017. Earnings per share was at 34.72 sen, 14% higher compared with 1H2017 of 30.34 sen.

 

DIVIDEND

PPB has declared an interim single tier dividend of 8 sen per share for the financial year ending 31 December 2018 payable on 4 October 2018 to shareholders whose names appear in the Record of Depositors on 18 September 2018.

 

REVIEW OF OPERATIONS

The results of PPB’s main business operations for 1H2018 are summarised as follows :- 

  • Grains & Agribusiness segment’s revenue for 1H2018 increased by 6% to RM1.54 billion mainly attributable to higher sales volume from all flour mills. Segment profit increased by 30% to RM73 million mainly due to lower raw material costs and improved product margins from feed division. 
  • Consumer Products segment revenue for 1H2018 was RM333 million, down 3% from 1H2017 mainly due to lower sales of in-house products. Segment profit decreased by 46% to RM10 million for 1H2018 mainly due to the absence of a  one-time gain on sale of land and building amounting to RM8.0 million in the 1H2017 and weaker performance by the bakery division. 
  • Film Exhibition & Distribution segment revenue was relatively stable at RM249 million. However, segment profit decreased by 28% at RM26 million mainly due to the losses from the film distribution business as movie titles released were weaker than last year. 
  • The Environmental Engineering & Utilities segment revenue increased twofold to RM93 million mainly contributed by progressive billings for the construction of projects secured in the 2H2017. In line with the segment revenue, segment profit was higher at RM7.2 million for 1H2018. 
  • The Property segment revenue increased by 8% to RM23 million primarily driven by higher project management fee income. Segment profit was at RM4.4 million as the one-time gain on the sale of vacant land was offset by higher operating cost.

  

CAPITAL COMMITMENTS

Total capital commitments as at 30 June 2018 amounted to RM581 million as follows :-

Segment Amount to be spent (RM million)
Grains & Agribusiness 292
Film Exhibition & Distribution 243
Consumer products 22
Investments & Other Operations 12
Property 11
Environmental Engineering & Utilities 1
  581

 

PROSPECTS FOR 2018

The flour markets in Malaysia, Indonesia and Vietnam and the feed market in Malaysia are expected to remain challenging amidst volatility in commodity prices.  Notwithstanding the market uncertainty, the Grains & Agribusiness segment is expected to perform satisfactorily with stable demand in the 2H2018, coupled by continuous efforts to strive for cost efficiency and focus on product quality.  The Consumer Products segment is expected to remain stable with more promotional activities and campaigns planned for the 2H2018.  The Film Exhibition & Distribution segment is expected to be supported by a strong movie line-up and contribution from newly opened cinemas in Malaysia.  In line with the construction progress of contracts in hand, the Environmental Engineering & Utilities segment is expected to perform better in the 2H2018.  With encouraging sales of the Megah Rise project in Petaling Jaya and improved tenancy from the extended and refurbished Cheras LeisureMall operations, the Property segment is expected to perform satisfactorily.

PPB Group’s main business segments are expected to perform satisfactorily in FY2018.  The overall Group financial results will continue to be supported by the business performance of Wilmar.

Tuesday, 10 July 2018

PROPOSED 1 FOR 5 BONUS ISSUE APPROVED BY SHAREHOLDERS

At an Extraordinary General Meeting of PPB Group Berhad (“PPB”) held at Shangri-La Hotel, Kuala Lumpur this morning, shareholders of PPB approved a proposed bonus issue of up to 237,099,976 new ordinary shares in PPB  (“Bonus Shares”) on the basis of one (1) bonus share for every five (5) existing PPB shares held (“Bonus Issue”). 

 

The Bonus Issue will be implemented by capitalising up to RM237,099,976 from PPB’s retained earnings.  The Bonus Issue will increase PPB’s share capital base and the number of PPB shares held by shareholders, and is expected to improve the marketability and trading liquidity of PPB shares on Bursa Securities.

 

The justification and effects of the Bonus Issue are disclosed on pages 3 and 4 of the Circular to Shareholders dated 22 June 2018.

 

The entitlement date for the Bonus Issue will be determined and announced later.

 

 

 

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