Managing director Lim Soon Huat said the expansion in the core business would contribute to the profitability of PPB Group, which is expected to perform satisfactorily in the year.
As for now, he said the group is in the midst of constructing a new wheat flour mill in Quang Ninh Province in Vietnam which has the capacity to produce 500 tonnes per day and is slated to be completed by third quarter of 2021.
"Vietnam is a growing market and we see good potential opportunity. We are also looking into other countries in the region to expand our grain and agribusiness segment,” he said during PPB Group’s virtual media and analyst briefing today.
He said this segment is expected to weather the volatile commodities market and to ride on its strong technical competency, extensive marketing and distribution network, as well as in-depth procurement experience.
PPB Group, one of the country’s largest flour millers, recorded a revenue of RM3.29 billion for financial year 2020 (FY20), marginally lower compared with RM3.3 billion for FY19.
The segment profit increased by 28 per cent to RM272 million in FY20, mainly attributed to lower raw material costs and higher share of profits from associates. - Bernama