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.
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.
Ms Koh Mei Lee, Head of Corporate Affairs of PPB Group Berhad
Telephone : 03-27260088