ADVERTISEMENT

PPB expects Wilmar to continue to support its financial performance


KUALA LUMPUR: Diversified PPB Group Bhd expects contributions from agri-based Wilmar International Ltd to continue to support the company's financial performance this year.

PPB managing director Lim Soon Huat said for financial year ended Dec 31, 2017 (FY17), Wilmar’s contributions helped boost the group's profit by 29% to RM970mil from RM750 mil in FY16.

Lim said Wilmar, which PPB has a 18.5% stake, has adopted an integrated business model and this has actually benefitted PPB as Wilmar was not relying heavily on the palm oil business.

“Their businesses are not only palm oil and the fact that they have a big presence geographically, including China, will (be) good (for) PPB,” Lim said, adding that Wilmar's share in palm oil consumer pack in China stood at about 40%.

Lim said this to reporters after PPB's press and analyst briefing here. He said the company’s indirect subsidiary, VFM-Wilmar Flour Mills Co Ltd, was in the midst of expanding its milling capacity by setting up a new flour mill at its existing location in Vietnam with additional capacity of 500 metric tonnes per day for US$21mil.

On PPB’c core businesses, he said, the company has set aside RM622mil capital expenditure (capex) for the next four years.

“Of the capex, RM296 mil will be used for its film, exhibition and distribution segment. The company plans to open nine new cinemas, of which eight would operate under Golden Screen Cinemas brand and would be located in Malaysia while another one is expected to be opened in Phnom Penh, Cambodia,” he said. On Dec 8, 2017, PPB’s wholly-owned unit, Mediamore Sdn Bhd, has acquired entire issued and paid-up capital of LGSC Cambodia Ltd. As for its grains and agribusiness, which contributed 67% to the company's revenue in FY17, PPB has allocated RM259mil, of which the amount would be channelled to flour mills in China and Vietnam.

The remaining RM67mil would be set aside for consumer products, environmental, engineering and utilities,property and other segments.

For the FY17, the company's net profit was slightly higher and stood at RM1.24bil as compared with RM1.11bil recorded in the previous year, while its revenue rose to RM4.31bil vis-a-vis RM4.19bil chalked up in FY16. — Bernama

Corporate News , wilmar

   

ADVERTISEMENT