Wilmar boost for PPB Group as 2Q net profit doubles to RM332.7m

For the first half, its net profit increased by 27.3% to RM519.99mil from RM408.42mil, boosted by Wilmar, which is Asia's leading agribusiness group.

KUALA LUMPUR: PPB Group Bhd's second quarter net profit rose by 108% to RM332.73mil from RM159.97mil, boosted by its Singapore's agribusiness associate Wilmar International Ltd.

PPB Group reported on Thursday its pre-tax profit was at RM390mil (2Q2019: RM181mil).

“Profit contribution from Wilmar increased by RM165mil to RM282mil (2Q2019: RM117mil), ” it said.

However, group revenue fell 17.3% to RM953.34mil from RM1.15bil. Earnings per share were 23.39 sen compared with 11.25 sen. It declared a dividend of eight sen a share.

For the first half, its net profit increased by 27.3% to RM519.99mil from RM408.42mil, boosted by Wilmar, which is Asia's leading agribusiness group.

PPB Group's pre-tax profit rose by 28% to RM591mil from RM461mil mainly attributable to higher contribution from Wilmar at RM447mil (1H19: RM310million). Core group profit was, however, lower by 4.8%.

However, group revenue was lower by 12% to RM2.02bil compared with RM2.31bil in the previous corresponding period as lower revenue was recorded by all core groups segments.

Grains and agribusiness

For 2Q2020 and 1H2020, segment revenue was lower by 4% to RM780mil (2Q2019: RM809mil) and 3% to RM1.59bil (1H2019: RM1.63bil) respectively.

This was mainly attributed to lower sales volume of flour and feed.

Segment profit for 2Q2020 and 1H2020 was at RM127mil (2Q19: RM25mil) and RM181mil (1H2019: RM85mil) respectively. The increase in profit was mainly due to lower raw material costs.

Consumer products

Segment revenue for 2Q2020 and 1H2020 remained stable at RM166mil (2Q19: RM167mil) and RM326mil (1H2019: RM332mil) respectively.

Consumer products segment recorded a profit for 2Q2020 and 1H2020 of RM10mil (2Q19: RM1mil, 1H19: RM3mil) mainly attributable to the improved performance at the bakery division.

Film and exhibition

Segment revenue for 2Q2020 and 1H2020 was at RM1mil (2Q19: RM146mil) and RM80mil (1H19: RM274mil) respectively.

For 2Q20 and 1H20, the segment recorded a loss of RM41mil (2Q19: profit RM21mil) and RM61mil (1H2019: profit of RM39mil) respectively. Performance of the segment was significantly impacted by the closure of cinemas during the Movement Control Order ("MCO") period up to 30 June 2020.

Environmental engineering and property segments were impacted by the movement control order.

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