Investor Relations

Press Releases

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.

 

 

 

Friday, 02 March 2018

Pre-Tax profit up to 7% to RM1.29 billion for year 2017

FINANCIAL HIGHLIGHTS OF YEAR 2017

  • PPB Group revenue rose 3% to RM4.31 billion in FY2017 mainly attributed to higher revenue generated from Grains and Agribusiness; Consumer Products; and Film Exhibition and Distribution.
  • Group pre-tax profit of RM1.29 billion was 7% higher than FY2016 mainly due to higher profit contribution from our 18.5% associate, Wilmar International Limited (Wilmar) which contributed RM0.97 billion for FY2017.
  • Profit for the year was RM1.24 billion and earnings per share was 101.68 sen for FY2017.


DIVIDENDS

A final single tier dividend of 22 sen per share for FY2017 will be tabled for approval by PPB shareholders at the Annual General Meeting to be held on 15 May 2018. The final dividend is payable on 31 May 2018 to shareholders whose names appear in the Record of Depositors on 18 May 2018.

Together with the interim single tier dividend of 8 sen per share, the total dividend paid and payable for FY2017 would be 30 sen per share (FY2016 : 25 sen per share).


REVIEW OF OPERATIONS

The results of PPB’s business operations for 2017 are summarised as follows :-

  • Revenue from the Grains and Agribusiness segment was up 5% to RM3.01 billion mainly attributed to the increase in flour sales volume in Vietnam and Malaysia, coupled with higher feed sales volume and selling prices in Malaysia. Segment profit decreased due to lower profit margin of flour.
  • Consumer Products segment revenue grew 10% to RM685 million due to higher revenue from edible oils, bakery products as well as sales of other in-house products and agency products. Segment profit improved mainly from a one-time gain of RM8.0 million from sale of land and building in 2017.
  • Revenue from the Film Exhibition and Distribution segment grew by 3% to RM481 million in FY2017 mainly due to contribution from new cinemas opened in 2017. Segment profit declined arising from the lower admission rate and increased film exhibition operating costs which were partially mitigated by an increase in average ticket prices and improved concession sales.
  • The Environmental Engineering and Utilities segment registered a lower revenue of RM130 million for FY2017, down 30% compared with FY2016, as most of the environmental engineering projects secured before FY2017 were at their completion stages whilst new projects secured in 2017 only began to contribute from 4Q2017. Segment profit increased by 4% to RM6.4 million due mainly to lower operational expenses and improved contribution from on-going projects.
  • Revenue from the Property segment decreased by 14% due to lower rental income, lower project management fees and the completion of the Taman Tanah Aman project in 2016. Segment profit reduced in line with the lower revenue to RM4.6 million.
  • Combined revenue from Investments and Other Operations was marginally lower at RM139 million for FY2017 due to lower revenue from the packaging division. The combined segment profit improved by 37% to RM9.4 million due to lower losses in the packaging division and higher dividend income.


PROSPECTS FOR 2018

The Malaysian economy is expected to maintain its positive growth momentum, driven mainly by domestic demand and the spillover effect of global growth.

The Grains and agribusiness segment is expected to perform satisfactorily amidst a competitive operating environment. Performance of the Consumer products segment is expected to remain stable. The Film exhibition and distribution business is expected to be supported by its newly-opened cinemas in Malaysia and Vietnam. The Environmental engineering and utilities segment will focus on timely completion of on-going projects and participate in tendering for prospective projects. The launch of the Megah Rise project in Petaling Jaya in November 2017 is expected to contribute positively to the Property segment going forward.

Against the backdrop of a positive growth momentum in the domestic and global economies, the 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.

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