PPB Group managing director Lim Soon Huat
KUALA LUMPUR: Plantation company PPB Group has expressed confidence that the ongoing legal case in Indonesia involving its unit Wilmar International Ltd will not affect its dividend commitment.
Wilmar was charged in 2022 over alleged misconduct in obtaining palm oil export permits in Indonesia.
It was reported that Wilmar had also handed over 11.8 trillion rupiah, about RM3.1 billion, to Indonesia's Attorney General's Office as a "security deposit" in relation to the case.
PPB Group managing director Lim Soon Huat noted that the company has a strong balance sheet and net cash of RM1.3 billion at the moment.
"Other than the dividend from Wilmar, we also have cash received from other investments at the same time. After considering our capital and also operational requirement, we believe that paying 12 sen per share for the interim dividend is the way we ensure that we continue to give confidence to our investment community.
"Whether the judgment from Indonesia will impact on the dividend payment, I believe that Wilmar’s operations in other areas such as China and India will continue to contribute positively, which should not impact the dividend payout," he told a press conference after the company’s press and analyst briefing here today.
Recently, the group declared an interim dividend of 12 sen per share for financial year ending Dec 31, 2025, payable on Sept 26, 2025.
Commenting on the ongoing case with Indonesia’s Supreme Court, Lim said the company hopes for a favourable judgment, and would be prepared for the worst case scenario in terms of financial provisions.
He said the investment and operation in Indonesia is for the longer term, so the company would still invest in the country, not just in terms of business, but also in terms of infrastructure and distribution capability.
"Wilmar has strong execution capability in Indonesia, which will continue to navigate the difficult situation in Indonesia. I think what we are seeing in Indonesia is a temporary setback, where we all know it's not about the business itself; it's also (about) the economy of the country, which is going through some challenging times," he said.
For the first six months ended June 30, 2025, PPB Group recorded a net profit of RM655.67 million from RM646.09 million in the same period in 2024, while revenue improved to RM2.71 billion from RM2.61 billion previously.
On the group’s prospects, Lim said their core business segments would continue to perform well, supported by improved performance of its flour business, as well as a strong recovery in its cinema business. "With this positive momentum, we are confident that our core business segments are well positioned for a sustained performance for the rest of the year,” he added. - Bernama
