PPB Q3 earnings up on higher contribution from Wilmar

PETALING JAYA: PPB Group Bhd's net profit for the third quarter ended Sept 30 has improved 8.6% to RM249.24mil on the back of higher contribution from its associate Wilmar International Ltd.

In a filing with Bursa Malaysia, the company said Wilmar contributed a higher profit of RM231mil in the third quarter compared with RM179mil in the previous corresponding quarter.

“The higher profit was driven by better performance in Wilmar's business segments with the exception of the oilseeds and grains, plantations and palm oil mills, which reported lower profits,” it said.

However, it said Wilmar contributed a lower profit of RM440mil for the first nine months this year compared with RM611mil year-on-year.

The decline was led by the oilseeds and grains segment which incurred losses in the first quarter of 2012 and the lower profit posted by Wilmar's plantations and palm oil mills, it said.

The company's pre-tax profit for the first nine months fell 30% to RM585mil versus RM831mil last year mainly due to the lower profit contribution from Wilmar in the first two quarters of the current financial year.

PPB's revenue increased 10% to RM780mil in the quarter under review while turnover for the first nine months jumped 14% to RM2.42bil, driven by higher revenue from the grains trading, flour and feed milling segment.

“The property segment's revenue rose significantly due to the sales of high-end residential properties in Bukit Segar, Kuala Lumpur and Taman Tanah Aman in central Seberang Prai,” it said, adding that the segment's pre-tax profit jumped to RM8.7mil from RM4.7mil year-on-year.

Other segments besides environmental engineering, chemicals, livestock and investments also recorded higher revenue.

The company noted that the high world prices for grains and uncertain global market environment would pose challenges to its business for the last quarter of financial year ending Dec 31.

“While most of the group's business segments are expected to perform well with the exception of livestock farming, the group's overall financial results for 2012 will largely hinge on Wilmar's business performance,” it said.

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