FINANCIAL HIGHLIGHTS OF 1H2026

• For 1H2026, PPB Group recorded lower revenue of RM2.6 billion, down 4%, whilst Group pre-tax profit decreased by 12% to RM639 million (1H2025 : RM724 million). The lower profit was mainly attributable to lower contribution from Wilmar International Limited by 6% to RM451 million (1H2025 : RM480 million) as well as lower contribution from the Group’s core business segments by 23% to RM188 million in 1H2026 (1H2025 : RM244 million).    
• Group net profit was lower at RM572 million, down 13% from RM656 million in 1H2025. Earnings per share was at 40.2 sen, 13% lower compared with 46.1 sen in 1H2025.

DIVIDEND

PPB has declared an interim dividend of 13 sen per share for the financial year ending 31 December 2026, payable on 25 September 2026 to shareholders whose names appear in the Record of Depositors at the close of business on 11 September 2026.

REVIEW OF OPERATIONS

The results of PPB’s main business operations for 1H2026 are summarised as follows :-

• Grains and Agribusiness segment’s revenue for 1H2026 decreased by 9% to RM1.76 billion (1H2025: RM1.92 billion), mainly attributable to lower sales across the flour, feed and livestock sub-segments. Segment profit was lower by 18% to RM156 million (1H2025 : RM191 million) mainly due to weaker performance in the maize, feed and livestock sub-segments.

• Consumer Products segment’s revenue for 1H2026 was 21% higher at RM490 million (1H2025 : RM407 million), mainly attributable to contributions from Min Tien Group and Eggtech Manufacturing Sdn Bhd, which were acquired in 3Q2025 and 1Q2026 respectively. A RM2.1 million loss for 1H2026 (1H2025 : RM2.8 million profit) was recorded due to lower sales volume for certain staple food products and higher trade promotion expenses.

• Film Exhibition and Distribution segment’s revenue decreased by 9% to RM310 million (1H2025 : RM341 million). Segment profit declined 55% to RM15 million for 1H2026 (1H2025 : RM33 million), mainly resulting from lower net box office collection and concession income due to a weaker slate of blockbuster titles, as well as higher operating costs.

• Property segment’s revenue for 1H2026 was 8% higher at RM36 million (1H2025 : RM33 million) whilst segment profit declined by 7% to RM3.9 million (1H2025 : RM4.2 million) mainly due to lower contribution from associates, partially offset by improved mall performance and higher profit from sale of properties.

• Other Operations segment’s profit was 5% lower at RM484 million (1H2025 : RM512 million), mainly attributable to the lower contribution from Wilmar.

PROSPECTS

The Malaysian economy strengthened to 6.0% in the second quarter of 2026 (1Q2026: 5.4%), driven by resilient domestic demand and robust export performance. Household spending benefited from steady income growth and ongoing policy measures, while investment activity was sustained by continued spending on infrastructure, machinery and equipment.

Despite on-going uncertainties stemming from heightened global developments that may affect inflation and growth outlook, Malaysia’s strong fundamentals will continue to underpin the economy’s resilience against external shocks.

For 2026, economic growth is projected to remain within the forecast range of 4% to 5%, supported primarily by continued domestic demand and strong export activity.

The Grains and Agribusiness segment continues to operate in a challenging environment amid unresolved Middle East conflicts and their impact on global trade and economic activity, weather-related disruptions to grain supplies, and on-going price volatility. Beyond grain prices, logistics, energy and other input costs are expected to remain key cost pressures in the second half of 2026.

The Group will continue to strengthen its grain procurement strategy through diversified sourcing, prudent inventory management and close monitoring of global grain market developments, to mitigate supply disruption and price volatility risks. The stronger Malaysian Ringgit against the US dollar has provided some relief to grain importers, although margin pressure is expected to persist.

On the domestic front, where the Group derives the majority of its revenue, the segment will continue to focus on maintaining consistent product quality, enhancing operational efficiency and providing value-added technical services to customers. These initiatives are aimed at strengthening customer relationships, supporting volume growth and sustaining revenue amid an increasingly competitive market.

Despite the challenging operating environment, the Group remains cautiously optimistic that the Grains and Agribusiness segment will deliver a satisfactory performance for the second half of the year.

The Consumer Products segment will continue to expand its product portfolio and introduce new offerings through strategic portfolio initiatives, responding to evolving consumer spending patterns and growing demand for value-oriented products, while further strengthening its market presence.

Despite continued pressures from rising operating costs, intense competition and margin compression, the Group expects the segment to deliver satisfactory performance by leveraging its well-established distribution network and logistics capabilities.

The Film Exhibition and Distribution segment recorded a strong recovery in the second quarter of 2026, turning around to a profit of RM21.9 million from a loss of RM7.3 million in the first quarter of 2026, supported by higher admissions and a stronger slate of box office releases. Nevertheless, performance for the first half of 2026 was softer as compared with a year ago, primarily due to a weaker film release slate.

Looking ahead, the Group remains cautiously optimistic about the segment’s prospects,  is supported by positive momentum from the summer blockbuster season and a stronger pipeline of Hollywood and local film releases scheduled for the second half of 2026.

The Group will continue to enhance its cinema offerings and customer experience, optimise screening strategies, and diversify non-ticket revenue streams to support sustainable growth. Disciplined cost management measures will also remain a priority to mitigate the impact of rising costs amid continued global uncertainties.

The Lumina Bedong Township development under the Property segment is progressing as planned, with stable sales momentum. The Group will continue to drive sales through targeted marketing campaigns and promotional initiatives.

The investment property sub-segment continues to record stable occupancy and footfall across all its malls. Strategic asset enhancement initiatives and upgrading works will remain priorities to sustain occupancy, increase footfalls, and enhance the overall shopping experience amid an increasingly competitive retail environment.

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

28 August 2026

 

END

Contact :-

Ms Susan Chia, Senior Manager, Sustainability & Corporate Affairs of PPB Group Berhad

Telephone : 03-27260088

Email : corporateaffairs@ppb.com.my