KUALA LUMPUR: PPB Group Bhd
’s net profit for the first quarter ended March 31, 2024 (1Q 2024) fell to RM337.17 million from RM377.54 million in the same quarter last year.
Revenue dropped 15 per cent to RM1.29 billion from RM1.52 billion previously, mainly due to the absence of contribution from the divested Indonesian flour operations in the quarter under review.
The group said most of its business segments saw a decline in revenue such as grains and agribusiness, film exhibition and distribution, property and other operations. However its consumer products revenue increased by four per cent to RM206 million but reported a lower profit.
On the group’s prospects, PPB its growth in 2024 will be driven by resilient domestic expenditure and bolstered by a continued recovery in external demand.
"For the remainder of 2024, we expect intense competition in the grains and agribusiness to continue in the flour and feed market and possible price volatility in the grains market due to potential disruptions in global grains supply, primarily influenced by the on-going risks associated with uncertain weather conditions in major grains-growing countries.
"The segment will continue to leverage on the group market intelligence and extensive experience in grains procurement as well as technical expertise in product formulation to drive sales and improve margins.
"We are cautiously optimistic that the segment will deliver a satisfactory set of results in 2024,” it said in a stock exchange filing.
PPB said it expects the consumer products segment to perform satisfactorily for the rest of the year, with several property development projects at various stages of planning while the improving mall performance will be the key driver for the property segment in 2024.
"We expect a very challenging 2024 for the film exhibition and distribution segment, as it is substantially dependent on the supply of movie content.
"However, the impact could be partially cushioned by local and regional releases, as well as contribution from events and food and beverages businesses,” it said. - Bernama
