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Recognised one-off non-cash impairment on Wilmar, expects resilient future performance.

FY2025 FINANCIAL HIGHLIGHTS

• PPB Group revenue increased to RM5.43 billion in FY2025 (FY2024 : RM5.39 billion).
• Proposed final dividend of 30 sen per share for FY2025, the total dividends paid and payable for FY2025 would be 42 sen per share.
• The Group recognised a one-off impairment charge of RM4.17 billion in respect of its investment in an associate, Wilmar International Limited ("Wilmar") 
• Excluding the impairment, pre-tax profit was up 20% at RM1.60 billion (FY2024: RM1.33 billion), attributable to the Group's core business segments which recorded a marked  improvement in pre-tax profit to RM480 million (FY2024: RM340 million), up 41%, as well as a 13% increase in profit contribution from Wilmar to RM1.12 billion (FY2024: RM992 million).
• With the impairment charge, loss after tax and minority interest for FY2025 was at RM2.73 billion.
• The Group continued to maintain a strong balance sheet, with cash and bank balances increasing by 23% to RM2.03 billion (FY2024: RM1.66 billion). Borrowings were down 50% to RM193 million (FY2024: RM389 million). As such, the Group’s net cash position improved by 45% to RM1.85 billion (FY2024: RM1.27 billion).

PROPOSED FINAL DIVIDEND OF 30 SEN PER SHARE

PPB’s Board has recommended a final dividend of 30 sen per share for FY2025, subject to shareholders approval at the 57th Annual General Meeting to be held on 14 May 2026. The final dividend is payable on 4 June 2026 to shareholders whose names appear in the Record of Depositors on 18 May 2026.

Together with the interim dividend of 12 sen per share, the total dividends paid and payable for FY2025 would be 42 sen per share (FY2024 : 42 sen per share).

REVIEW OF OPERATIONS

The results of PPB’s business operations for 2025 are summarised as follows :-

• Revenue from the Grains and Agribusiness segment was 4% lower at RM3.79 billion (FY2024 : RM3.95 billion).  However, the segment recorded a 22% increase in pre-tax profit for FY2025 to RM393 million (FY2024: RM321 million). The improvement was mainly contributed by improved performance in the flour and feed sub-segments.
• Consumer Products segment revenue was up 13% to RM886 million (FY2024 : RM784 million). Segment profit for FY2025 was 3% higher at RM6.7 million (FY2024 : RM6.5 million); this included a one-off gain from the acquisition of Min Tien & Company Sdn Bhd amounting to RM4.5 million.
• Revenue from the Film Exhibition and Distribution segment increased by 16% to RM682 million (FY2024 : RM587 million). For FY2025, this segment recorded a significant improvement in profit to RM69 million (FY2024 : RM3.7 million), driven by higher admissions and net box office collection and concession income, as well as lower cinema operating costs and absence of cinema closure costs incurred in FY2024.
• Property segment revenue was 20% higher at RM63 million (FY2024 : RM52 million). Profit was lower at RM6.8 million (FY2024 : RM12 million), which included a one-off impairment of RM8.4 million on an investment property held by an associate. Excluding that, the segment recorded a higher profit at RM15 million, mainly due to better mall performance, profit from property sales and lower operating costs.
• Other operations recorded an overall loss of RM3.01 billion for FY2025, due mainly to a one-off impairment of RM4.17 billion on the investment in Wilmar. The impairment arose following adverse developments in Indonesia and China, including regulatory penalties and ongoing legal proceedings involving Wilmar entities, as well as heightened compliance and macroeconomic uncertainties in these markets. The Group has reassessed its investment value in Wilmar, taking into account the persistent decline in Wilmar’s share price over the past five years and the prolonged period during which it has traded below the Group’s carrying value of this investment. The Board had agreed that Wilmar's growth projections be adjusted to align with the market outlook, adopting a higher rate of return expectation to account for the increased operational risks in the respective markets.
  
  Excluding the above impairment, the segment recorded a higher profit by 13% to RM1.16 billion in FY2025 (FY2024: RM1.03 billion). Share of profit from Wilmar for FY2025 increased by 13% to RM1.12 billion (FY2024: RM992 million), mainly attributable to a fair value gain of USD1.14 billion from the acquisition by a Wilmar subsidiary of an additional 13% equity interest in AWL Agri Business Limited; partially offset by a payment (equivalent to about USD712 million) arising from the Indonesia Supreme Court decision on actions by several Wilmar subsidiaries pertaining to the Indonesian cooking oil market. Wilmar’s performance was also affected by other one-off provisions totalling USD324 million.

PROSPECTS FOR 2026

World grain prices are projected to remain relatively stable, supported by sufficient global supply even as uncertainties persist across global trade and microeconomic conditions. The strengthening of the RM against the USD has provided some cost relief for grain importers, although the operating environment remains very competitive. 

The Group will continue to leverage its market intelligence and extensive experience in grains procurement to enhance cost efficiency, and ensure a secure and reliable supply. Continuing key priorities are to strengthen productivity and resilience, and maintain consistent product quality. The Group will maintain its emphasis on providing value-added technical services and solutions to drive volume growth.

The Group expects the Grains and Agribusiness segment to deliver a broadly comparable result in 2026 with that of 2025.

The Consumer Products segment will continue to expand its product range and innovative offerings to strengthen its market presence, and optimise distribution network efficiency. On the back of rising confidence in the country’s economic outlook, the segment is expected to achieve a satisfactory performance, leveraging its established distribution network and logistics capabilities, notwithstanding continued pressure from rising operating costs.

The Film Exhibition and Distribution segment recorded a significantly stronger performance in FY2025, with a healthy slate of Hollywood and local releases that lifted box office takings, and good performances from non-ticket revenue streams such as concession and food & beverage units. Media income also improved as the Group continued to expand its media offerings.

Looking ahead in 2026, the segment remains optimistic, supported by strong industry momentum, and a steady flow of Hollywood and local movie releases.

The Property segment remains focused on driving sales through targeted marketing and promotional initiatives for available units. Phase 1A of the Lumina Bedong township development is in progress, and preparations are underway for the release of Phase 1B for sale during the year.

The investment property sub-segment will continue to enhance the operational efficiency of its malls through strategic asset enhancement initiatives and upgrades. These efforts are aimed to maintain high occupancy rates and boost footfall.

Notwithstanding the provision for impairment recognised, the Group remains cautiously optimistic regarding Wilmar’s underlying resilience to navigate these challenges. Wilmar's operations are expected to continue contributing substantially to the overall profitability of the Group.

 

27 February 2026

 

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.