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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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