PPB Group first-half profit jumps 80%


PPB Group Bhd chalked up a 84% rise in pre-tax profit to RM171mil in the second quarter to June from RM93.2mil in the same period last year due to higher palm product prices and better performance in its edible oils refining, sugar refining, grain and feed-milling divisions. 

Turnover rose only 8% to RM2.13bil but net profit for the quarter surged 83% to RM85.7mil from RM46.8mil the year before. Earnings per share came in substantially higher at 17.47 sen against 9.54 sen previously. 

The food-based group has declared first gross dividend per share of 9 sen, a similar amount as in the previous corresponding quarter. 

For the half-year ended June 30, PPB Group's pre-tax profit jumped 80% to RM329.5mil from RM182.6mil in the period a year ago.  

Turnover was also higher at RM4.25bil compared with RM3.5bil previously. Net profit grew 82% to RM168.7mil from RM92.5mil, while earnings per share ballooned to 34.38 sen from 18.85 sen in the corresponding period. 

PPB Group said in a statement that its oil palm plantation subsidiary PPB Oil Palm Bhd achieved a 78% rise in half-year earnings to RM95.6mil. 

PPB Group said its edible oils refining business returned to the black with profit of RM39mil from a minor loss a year ago.  

Its film exhibition and distribution division benefited from the release of blockbuster titles and the government's piracy-eradication efforts to record profit of RM4.5mil, up 160% from RM1.74mil. 

The group's grain and feed-milling division FFM Bhd delivered a good set of earnings for the half-year ended June 30. 

FFM recorded a 79% increase in pre-tax profit to RM67.3mil for the second quarter ended June 30 from RM37.7mil. Turnover rose to RM1.79bil from RM1.69bil. 

Net profit for the quarter rose 53% to RM44mil from RM28.8mil and earnings per share grew to 19.75 sen in the quarter compared with 12.92 sen. 

The country's largest flour miller declared an interim dividend of 7 sen per share.  

For the half-year ended June 30, FFM posted a pre-tax profit of RM121.6mil, a 49% increase from RM81.7mil in the previous corresponding period. 

Turnover rose 23% to RM3.6bil from RM2.9bil. Net profit increased 23% to RM79.5mil from RM64.6mil, while earnings per share increase to 35.62 sen from 28.95 sen. 

In a separate statement, FFM announced that its 65.8% subsidiary PGEO Group Sdn Bhd had signed an agreement with Volac Ltd to produce calcium salts for feed ingredients using palm fatty acid distillate. 

PGEO will hold 51% equity interest in the joint venture called Volac Ingredient Sdn Bhd, while the British partner will own the remaining stake. The proposed paid-up capital of Volac Ingredient is RM3mil, comprising 3 million shares. 

FFM said the proposal would broaden its business activities and diversify the use of palm fatty acid distillate. 

 Stock Watch On PPB

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