KUALA LUMPUR (March 2): PPB Group Bhd said Singapore-listed associate Wilmar International Ltd will fuel PPB's growth in 2018. This is because agribusiness group Wilmar has been investing in its core business.
PPB managing director Lim Soon Huat said the diversified group PPB will continue to benefit from Wilmar's wide portfolio and recent expansion.
“Wilmar will help to fuel our growth because it has been investing. So when it comes to a certain stage, it will then start to harvest what it has invested. I believe that its future earnings will be good, barring any unforeseen circumstances.
“It’s not just palm oil. Wilmar has been investing in their core business besides expanding in other businesses. They are operating in a wider geographical area, so that will also continue to support the business performance of Wilmar," Lim said at a press and analyst briefing here today.
According to PPB's website, PPB owns an 18.6% stake in Wilmar. PPB's website indicates that Wilmar’s business encompasses the entire value chain of the agricultural commodity business, from cultivation, processing, merchandising to manufacturing of a wide range of agricultural products. PPB said Wilmar has over 500 manufacturing plants and an extensive distribution network covering China, India, Indonesia and some 50 other countries.
Meanwhile, PPB's diversified businesses include grains and agribusiness, cinema operations and property development, its website shows.
At the press and analyst briefing, Lim said PPB is expected to record "satisfactory" performance in the financial year ending Dec 31, 2018. “I believe our core business will be supported and to some extent benefit from the improved business activities and also the sentiment in Malaysia, so overall I believe our business going forward will be satisfactory in 2018,” he said.
Source from: http://www.theedgemarkets.com/article/ppb-ride-wilmar-growth-2018