PPB earnings up 29.4% on higher contribution from Wilmar

  • Business
  • Thursday, 24 Nov 2016

PETALING JAYA: Conglomerate PPB Group Bhd recorded RM381.4mil in earnings for the third quarter ended Sept 30, 2016, a 29.4% increase from the same quarter a year ago, largely due to higher profit contribution from Singapore-listed associate Wilmar International Ltd.

The company told Bursa Malaysia that the share of associates and joint-venture profits was RM321mil for the quarter, compared with RM213mil a year ago.

Wilmar contributed higher profits of RM293mil against RM205mil during the same period last year, mainly attributed to good performance from the tropical oils segment as well as the oilseeds and grains segment.

The company, controlled by tycoon Robert Kuok, saw revenue for the quarter decrease marginally by 1.1% to RM983.7mil compared to a year ago.

It said this was due to lower revenue generated from the environmental engineering and utilities, property as well as investments and other operations segments.

The environmental engineering and utilities segment saw lower revenue of RM32mil for the quarter, as most of the environmental engineering projects have been completed and handed over in previous quarters.

For the first nine months of the year, earnings declined by 22.7% to RM548.9mil.

“Despite better results from the grains and agribusiness, film exhibition and distribution, and property segments, group profit was moderated by lower profit contribution from Wilmar.

Its revenue for the period was up 6.9% to RM3.2bil, primarily driven by higher revenue from the grains and agribusiness, film exhibition and distribution, and consumer products segments.

Profit contribution from associates and joint ventures for the nine-month period was lower at RM367mil from RM515mil previously. Wilmar’s contribution for the period was RM304mil against RM499mil a year ago as a result of losses incurred in the second quarter of this year.

On the outlook for the year, the company said the grains and agribusiness segment continued to be competitive with moderate revenue growth expected for the final quarter of the year, while the consumer products segment remained challenging amidst cautious consumer spending.

It said the film exhibition and distribution business would benefit from the better movie line up in the last quarter, and the environmental engineering and utilities segment would deliver lower revenue from the current ongoing projects.

“While the group’s main business segments are largely expected to perform well in 2016, the overall consolidated financial results for the year will continue to be substantially supported by Wilmar’s business performance,” it said.

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