PPB Group Bhd has posted a marginally higher pre-tax profit of RM332.4mil for the first half ended June 30, against RM329.5mil in the same period a year ago, despite a 27% rise in turnover to RM5.39bil.
Net profit inched up to RM171.2mil, or 34.9 sen per share, from RM168.7mil or 34.4 sen in the previous corresponding period.
The marginal increase in bottomline is mainly due to the lower profit in the second quarter.
For the second quarter ended June 30, pre-tax profit dropped 13.6% to RM147.8mil from RM171.1mil although turnover grew nearly 32% to RM2.8bil from RM2.13bil. Net profit fell to RM73.2mil from RM85.7mil in the quarter, while earnings per share shrank to 14.93 sen from 17.47 sen.
The group said profit from its sugar and grains trading, and flour and feed milling divisions were dragged down by higher raw material costs. Contribution from its oil palm plantation operation was also lower due to a translation loss of US-dollar denominated loans recorded by Indonesian-base subsidiaries arising from the weakening rupiah.
The edible oils refining and trading operations achieved a 14.4% growth in profit to RM44.7mil on higher revenue of RM4.18bil amid stronger prices of processed palm oil and related products in the first six months.
Executive chairman Datuk Oh Siew Nam said profit from the oil palm division was expected to be higher than in the preceding year should the current crude palm oil prices prevail.