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Thursday, 05 September 2024

PPB GROUP BERHAD PPB GROUP REPORTED PRE-TAX PROFIT OF RM701 MILLION, 8% HIGHER THAN 1H2023 AND DECLARED AN INTERIM DIVIDEND OF 12 SEN PER SHARE

FINANCIAL HIGHLIGHTS OF FY2024

  • For 1H2024, PPB Group recorded lower revenue of RM2.61 billion whilst Group pre-tax profit improved by 8% to RM701 million. The higher profits were mainly attributable to the higher contribution from Wilmar International Limited (“Wilmar”) by 11% to RM510 million.  Excluding the one-off gain on disposal of Yihai Kerry (Shenyang) Oils, Grains & Foodstuffs Industries Co. Ltd (“YKS”) in 1H2024 amounting to RM12.6 million (1H2023 : Gain on divestment of a subsidiary, Malayan Adhesives & Chemicals Sdn Bhd of RM24.5 million), the Group’s core business segments recorded a 9% increase in profit before tax to RM178 million in 1H2024 mainly attributable to improved performance from the Grains and Agribusiness segment, partially offset by lower contribution from the Film Exhibition and Distribution segment.
  • Group profit for the period was higher at RM660 million, up 10% compared with RM600 million in 1H2023. Earnings per share was at 45.42 sen, 11% higher compared with 40.80 sen in 1H2023.


DIVIDEND

PPB has declared an interim dividend of 12 sen per share for the financial year ending 31 December 2024, payable on 26 September 2024 to shareholders whose names appear in the Record of Depositors on 13 September 2024.


REVIEW OF OPERATIONS

The results of PPB’s main business operations for 1H2024 are summarised as follows :-

  • Grains and Agribusiness segment revenue for 1H2024 decreased by 17% to RM1.88 billion, mainly attributable to the absence of revenue contribution from the divested Indonesia flour operations. Excluding that, segment revenue for 1H2024 was relatively unchanged.  The segment recorded a profit of RM170 million in 1H2024.  Excluding the gain on disposal of YKS, the segment recorded a 24% profit increase to RM157 million, mainly contributed by the flour and feed sub-segments.
  • Consumer Products segment revenue for 1H2024 was higher at RM395 million, up 2%. Segment profit was lower for 1H2024 at RM3 million, down 76% attributable mainly to higher trade promotion and operational costs.
  • Film Exhibition and Distribution segment revenue increased by 1% to RM300 million and turned around to a profit for 1H2024 at RM1.0 million from an RM15 million loss recorded in 1Q2024 (1H2023 : RM14 million).  The lower profit was mainly attributable to higher new cinema operating costs as well as cinema closure costs.
  • Property segment revenue for 1H2024 was lower by 40% at RM27 million due mainly to the absence of revenue recognised on the sold units at the Megah Rise residential project, partially offset by the improved malls performance.  Segment profit was up 5% to RM3.5 million.
  • Other Operations segment recorded a profit of RM541 million, up 7% mainly attributable to the higher contribution from Wilmar.


PROSPECTS FOR 2024

Despite higher volatility in grain prices in 2Q2024, the performance of our Grains and Agribusiness segment remained resilient as we leveraged our market intelligence and extensive experience in grain procurement.  The Group remains cautious about the potential adverse weather conditions in key grains growing regions that could affect global prices.  However, our strong technical expertise in product formulation and quality assurance continues to drive sales growth and enhance margins.  The Group is well-positioned to navigate the market challenges and seize opportunities to sustain satisfactory performance for the remainder of the year.

Despite the rising business costs, the Consumer Products segment remained focused on improving marketing efficiency through our established network and logistical resources, while also expanding our product range and market presence.  We expect the segment’s performance to remain satisfactory for the rest of the year.

The Film Exhibition and Distribution segment posted a profit in the second quarter of 2024, driven by a more robust lineup of movies and significant contributions from both local and regional releases.  However, with Hollywood’s production and supply still in the early stages of recovery, we maintain a cautious outlook for the segment as we transition into the second half of the year.

With several property development projects at various stages of planning, enhancing mall performance will be a key driver for the Property segment in 2024.

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

5 September 2024

 

Contact :- Ms Susan Chia, Senior Manager, Sustainability & Corporate Affairs of PPB Group Berhad
Telephone : 03-27260088
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

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