Press Releases

FINANCIAL HIGHLIGHTS OF FY2023

• PPB Group revenue decreased by 9% to RM5.72 billion in FY2023 (FY2022 : RM6.26 billion).
• Group pre-tax profit of RM1.49 billion was 34% lower than FY2022 of RM2.25 billion mainly attributable to the lower contribution from our 18.8% associate, Wilmar International Limited (Wilmar) which contributed RM1.30 billion for FY2023 (FY2022 : RM2.10 billion), down 38%. The Group’s core business segments recorded a marked overall improvement in pre-tax profit of RM189 million in FY2023 (FY2022 : RM151 million), up 25%.
• Profit after tax for FY2023 was RM1.42 billion and earnings per share was 98.01 sen.

PROPOSED FINAL DIVIDEND OF 30 SEN PER SHARE

PPB’s Board has recommended a final dividend of 30 sen per share for FY2023 subject to approval by PPB shareholders at the 55th Annual General Meeting to be held on 17 May 2024. The final dividend is payable on 7 June 2024 to shareholders whose names appear in the Record of Depositors on 21 May 2024.

Together with the interim dividend of 12 sen per share, the total dividends paid and payable for FY2023 would be 42 sen per share (FY2022 : 40 sen per share).

REVIEW OF OPERATIONS

The results of PPB’s business operations for 2023 are summarised as follows :-

• Revenue from the Grains and Agribusiness segment was 9% lower at RM4.26 billion (FY2022 : RM4.66 billion) due mainly to lower revenue from the Indonesia flour operations, which was divested on 12 September 2023. This segment recorded higher profit at RM230 million (FY2022 : RM74 million) largely attributable to improved performance at the flour, feed and livestock divisions which was partially offset by losses at the divested Indonesia flour operations and a provision for the MyCC penalty.
• Consumer Products segment revenue increased by 1% to RM761 million (FY2022 : RM751 million). Segment profit for FY2023 was lower at RM26 million (FY2022 : RM34 million) mainly attributable to higher trade promotion and operating costs.
• Revenue from Film Exhibition and Distribution segment increased by 11% to RM570 million (FY2022 : RM515 million). This segment reported a higher loss of RM120 million for FY2023 (FY2022 : RM17 million loss), primarily attributable to impairments on the Vietnam operations which amounted to RM60 million (FY2022 : RM27 million); and on the Malaysia cinema assets amounting to RM53 million. Excluding these impairments, the segment recorded a loss of RM8 million in FY2023 (FY2022 : RM10 million profit) which was mainly attributable to higher cinema operating costs.
• Property segment registered revenue and profit of RM117 million (FY2022 : RM141 million) and RM17 million (FY2022 : RM35 million) respectively, due mainly to lower progressive profit recognition from the Megah Rise Residensi units sold as the project was completed in August 2022.

PROSPECTS FOR 2024

With the correction of world grain prices in 2023 from its peak in 2022, the performance of the Grains and Agribusiness segment improved significantly in 2023, particularly the Malaysia operations. Nevertheless, we expect competition to be intense; with continued volatility in the global grain commodity markets primarily influenced by the ongoing risks associated with uncertain weather conditions in major grains growing countries. We will continue to leverage on our extensive experience in grain procurement and expertise in product formulation to drive operational efficiency. We are cautiously optimistic that the Grains and Agribusiness segment will deliver a satisfactory set of results in 2024.

The consumer market is expected to face challenges from prevailing consumer sentiment and spending patterns. However, we expect the Consumer Products segment to continue to perform well in 2024, as the segment remains focused on the business of the manufacturing and distribution of consumer staple food and continues to expand its product range.

The Film Exhibition and Distribution segment recorded a loss in the fourth quarter of 2023 as a result of the deferment of several key blockbuster titles due to the actors' and writers' strikes in Hollywood, and cinema impairments. The strikes which ended in the last quarter of 2023, have also affected production and supply of movie content in the medium term. We anticipate a challenging 2024 for this segment as it is substantially dependent on the supply of content. However, the impact will be partially cushioned by local and regional releases as well as contributions from events and F&B business.

With several property development projects being planned at various stages, improving mall performance will be the key driver for the Property segment in 2024.

Wilmar's performance will continue to contribute substantially to the overall profitability of the Group.

Contact :-Ms Susan Chia, Senior Manager, Sustainability & Corporate Affairs of PPB Group Berhad
Telephone : 012-2832301
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

FINANCIAL HIGHLIGHTS OF 1H2023

• For 1H2023, PPB Group revenue increased marginally to RM3.0 billion whilst Group pre-tax profit declined by 35% to RM648 million. The lower profits were mainly attributable to the lower contribution from Wilmar International Limited (“Wilmar”) by 54% to RM460 million.  The Group’s core business segments, however, recorded a profit of RM188 million in 1H2023 as compared to a loss of RM1.0 million in 1H2022.
• Group profit for the period was lower at RM600 million, down 40% compared with RM998 million recorded in 1H2022. Earnings per share was at 40.80 sen, 42% lower compared with 70.05 sen in 1H2022.

DIVIDEND

PPB has declared an interim dividend of 12 sen per share for financial year ending 31 December 2023, payable on 22 September 2023 to shareholders whose names appear in the Record of Depositors on 13 September 2023.

REVIEW OF OPERATIONS

The results of PPB’s main business operations for 1H2023 are summarised as follows :-

• Grains and Agribusiness segment revenue for 1H2023 increased by 4% to RM2.26 billion. The segment recorded a profit of RM127 million in 1H2023 mainly due to the improved performance of the Malaysian operations with higher sales and profit margin, on the back of a less volatile grains commodity market during the period under review.
• Consumer Products segment revenue for 1H2023 was higher at RM388 million, up 3%. Segment profit was lower for 1H2023 at RM12 million attributable mainly to lower sales of consumer products and higher trade promotion expenses.
• Film Exhibition and Distribution segment revenue increased by 34% to RM296 million for 1H2023 whilst the segment turned around with a profit of RM14 million on the back of a 33% and 42% increase in box office collections and admissions respectively for the Malaysian operations, coupled with strong contribution from the Vietnam operations.
• Property segment revenue and profit for 1H2023 was lower by 45% and 85% at RM45 million and RM3 million respectively. The lower revenue and profit were mainly attributable to the absence of progressive profit recognised for sold units as the Megah Rise residential project was fully completed in August 2022, and higher mall operating costs.

 PROSPECTS

The global grains commodity market remained moderately volatile as the global supply risk could reemerge with any escalation of geopolitical tension between Ukraine and Russia, as well as weather conditions affecting the production forecast of grains-growing countries.

The performance of the Grains and Agribusiness segment has improved significantly in the first half of 2023 as compared to a year ago.  However, any downside supply risk could affect the performance of the segment for the rest of the year.

With a strong first-half performance, and our continuous efforts to drive production and cost efficiency, we expect the Grains and Agribusiness segment to perform satisfactorily.

The Consumer Products segment is expected to deliver a satisfactory set of results by capitalising on its established nationwide distribution network and integrated warehousing and marketing system, while continuing its efforts to expand its consumer products range and widen its distribution base.

The Film Exhibition and Distribution segment had a strong close in the second quarter of 2023. For the rest of the year, we anticipate the Malaysian cinema industry performance to remain resilient with the upcoming lineup of strong movie titles, which should contribute positively to the segment's performance in 2023.  However, the recent actors and writers’ strikes in Hollywood may potentially affect the filming of movies and cause delays to a number of blockbuster releases, we are cautiously optimistic about the performance of the segment in 2023.

We expect the Property segment to perform satisfactorily as the new development projects in Kedah and Penang are in their final planning stages. Improved malls occupancy and footfall are expected to drive segment revenue in 2023.

Wilmar's performance will continue to contribute substantially to the overall profitability of the Group.

FINANCIAL HIGHLIGHTS OF FY2022

• PPB Group revenue increased by 29% to RM6.26 billion in FY2022 (FY2021 : RM4.86 billion). All core segments recorded higher revenue.
• Group unaudited pre-tax profit of RM2.25 billion was 50% higher than the RM1.50 billion in FY2021 mainly due to higher profit contribution from its 18.8% associate, Wilmar International Limited (Wilmar) which contributed RM2.10 billion for FY2022 (FY2021 : RM1.50 billion), up 40%.
• Profit after tax for FY2022 was RM2.22 billion and earnings per share was 154.43                                    

PROPOSED FINAL DIVIDEND OF 28 SEN PER SHARE

PPB’s Board has recommended a final dividend of 28 sen per share for FY2022 subject to shareholders’ approval at the 54th Annual General Meeting to be held on 17 May 2023.  The final dividend is payable on 8 June 2023 to shareholders whose names appear in the Record of Depositors on 19 May 2023. 

Together with the interim dividend of 12 sen per share, the total dividend paid and payable for FY2022 would be 40 sen per share (FY2021 : 35 sen per share).

REVIEW OF OPERATIONS

The results of PPB’s business operations for 2022 are summarised as follows :-

• Revenue from the Grains and agribusiness segment was 26% higher at RM4.66 billion (FY2021 : RM3.69 billion). This segment recorded a profit at RM74 million (FY2021 : RM62 million), up 21% largely due to a more stable grain community market.
• Consumer products segment revenue increased by 17% to RM751 million (FY2021 : RM644 million). Segment profit for FY2022 was at RM34 million (FY2021 : RM7 million) mainly attributable to higher sales of bakery and other fast-moving consumer products.
• Revenue for the Film Exhibition and Distribution segment increased significantly to RM515 million (FY2021 : RM116 million) whilst segment losses reduced to RM17 million for FY2022 (FY2021 : RM113 million loss). Excluding the impairment on investment in an associate in Vietnam amounting to RM27 million, the segment made a profit of RM10 million for FY2022.  A five-fold increase in admissions and box office collections were the main contributing factors for the return to profitability of the Malaysian operations of this segment.
• The Property segment recorded revenue and profit of RM141 million (FY2021 : RM114 million) and RM35 million FY2022 (FY2021 : RM15 million) respectively mainly attributable to new sales and progressive profit recognition from the completed Megah Rise residential project as well as improvement in overall mall business performance.

PROSPECTS FOR 2023

Performance of the Grains and agribusiness segment improved as grain commodity prices stabilised, particularly in the second half of 2022.  PPB expects grain commodity prices to remain volatile given the uncertain weather conditions in the major grains-growing countries and on-going Russian-Ukraine war. To navigate the challenges ahead, the segment will continue to leverage on its market intelligence to drive procurement and operational efficiencies.  The segment is expected to deliver a satisfactory performance in 2023.

The Consumer products segment has performed well in 2022 and is expected to improve amid recovery of consumer spending. The segment will continue to improve operational efficiencies through its integrated marketing system and established nationwide distribution network in distributing a widely-accepted range of necessities, and in expanding its range of consumer products.

The Malaysian operations of the Film exhibition and distribution segment closed on a positive note in the fourth quarter of 2022, attributable mainly to better performance of several major blockbusters during the holiday season.  For 2023, PPB expects performance of the segment to improve further with the release of more tent pole movies, and support from positive consumer sentiment and confidence.

The Property segment will continue to focus on planned development projects in Kedah and Penang, as well as enhancing its malls performance and the segment is expected to perform satisfactorily.

Wilmar’s performance will continue to contribute substantially to the overall profitability of the Group.

FINANCIAL HIGHLIGHTS FOR 1H2022

• For 1H2022, PPB Group revenue increased by 34% to RM2.96 billion whilst Group pre-tax profit rose 68% to RM991 million. All key segments recorded improved performance coupled with the increase in contribution from Wilmar International Limited (“Wilmar”) by 67% to RM992 million.
• Group profit for the period was higher at RM998 million, up 68% compared with RM595 million recorded in 1H2021. Earnings per share was at 70.05 sen, 70% higher compared with 41.17 sen in 1H2021.

DIVIDEND

PPB has declared an interim dividend of 12 sen per share for financial year ending 31 December 2022, payable on 28 September 2022 to shareholders whose names appear in the Record of Depositors on 9 September 2022.

REVIEW OF OPERATIONS

The results of PPB’s main business operations for 1H2022 are summarised as follows :-

• Grains and Agribusiness segment revenue for 1H2022 increased by 31% to RM2.2 billion. The segment recorded a profit of RM115 million in 2Q2022 as compared to a loss of RM72 million recorded in 2Q2021; with that, the 1H2022 loss narrowed to RM23 million compared with RM52 million profit in 1H2021. The marked improvement in performance was attributable to hedging gains on derivative instruments as grain prices stabilised during the second quarter of 2022.
• Consumer Products segment revenue and profit for 1H2022 were higher at RM378 million and RM13 million. The improved performance was mainly due to higher sales of bakery and other fast-moving consumer products.
• Film Exhibition and Distribution segment revenue increased significantly to RM221 million compared with RM41 million in 1H2021 whilst the loss for 1H2022 reduced to RM8 million as compared with RM59 million loss recorded in 1H2021. The full reopening of cinemas, the opening of the newly acquired former MBO cinemas, higher admissions as well as a six-fold increase in box office collections, are the main factors which contributed positively to the overall performance of this segment.
• Environmental Engineering and Utilities registered lower segment revenue and segment profit of RM68 million and RM1.2 million, down 28% and 71% respectively due to lower project revenue recognised and higher project cost incurred.
• The Property segment revenue for 1H2022 was higher at RM82 million, up 56% whilst segment profit increased by >100% to RM22 million. The improvement was mainly attributable to new sales and progressive profit recognition of the Megah Rise development project, as well as improvement in overall mall business performance.

PROSPECTS

Grain commodity prices have now stabilized to a level closer to the pre-Russian-Ukraine conflict as global supply concerns eased. However, the flowthrough effect of high raw material prices on production costs, as well as high logistics costs will remain, given the lag effect of procurement and production cycles, in addition to limitations in our price-in mechanism. The Grains and agribusiness segment will continue its efforts to preserve margins by improving its product performance and enhancing its operational efficiency.

We expect our Consumer products segment, which mainly distributes basic necessities, to perform satisfactorily on the back of improving consumer sentiment as the country transitions into endemicity.

The Film exhibition and distribution segment saw strong quarter-to-quarter improvement due to the release of summer blockbuster titles. The scheduled movie line-up for the second half of 2022 is expected to contribute positively to the segment. Management will remain cautious in spending during this recovery stage of the industry and continue to optimise resources.

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

The Megah Rise development project is on schedule to be completed by the end of the 3rd quarter. Coupled with the increased footfall in our malls, performance of the Property segment is expected to be satisfactory.

Wilmar's performance will continue to contribute substantially to the overall profitability of the Group.