PPB’s net profit tumbles 71% in 2Q to RM202.8mil

KUALA LUMPUR: PPB Group Bhd expects a satisfactory performance from the grains and agribusiness segment given the robust performance in the first half and its efforts to drive production and and cost efficiency.

“The consumer products segment is expected to deliver a satisfactory set of results by capitalising on its established nationwide distribution network and integrated warehousing and marketing system while continuing its efforts to expand its consumer products range and widen its distribution base,” PPB said in a filing with Bursa Malaysia.

The group said the film exhibition and distribution segment had a strong close in the second quarter of 2023.

For the rest of the year, PPB anticipates the Malaysian cinema industry performance to remain resilient with the upcoming lineup of strong movie titles, which should contribute positively to the segment’s performance in 2023.

“However, the recent actors and writers’ strikes in Hollywood may potentially affect the filming of movies and cause delays to a number of blockbusters releases, we are cautiously optimistic about the performance of the segment in 2023,” PPB said.

The group expects the property segment to perform satisfactorily as the new development projects in Kedah and Penang are in their final planning stages.

It added that improved malls occupancy and footfall are expected to drive segment revenue in 2023.

“Wilmar’s performance will continue to contribute substantially to the overall profitability of the group,” PPB said.

In the second quarter ended June 30, PPB saw its net profit tumble 70.7% to RM202.8mil from RM693.4mil posted a year ago.

Revenue was lower at RM1.48bil from RM1.54bil previously while earnings per share fell to 14.26 sen from 48.74 sen last year.

In the first half, PPB posted a net profit of RM580.3mil on revenue of RM3bil.

The board of directors has declared an interim dividend of 12 sen per share for the financial year ending Dec 31, 2023, payable on Sept 22.