PPB posts lower net profit of RM187.3 mil in 1Q with Wilmar’s share falling

KUALA LUMPUR: PPB Group Bhd, one of the country’s largest flour millers, posted a net profit of RM187.27 mil in the first quarter ended March 31, 2020, down about 25% from RM248.45 mil in the same period last year.

In a filing with Bursa Malaysia, the diversified group said pre-tax profit contribution from Singapore-listed associate Wilmar International Ltd – the largest contributor to its earnings – fell by 14% to RM165 mil.

PPB Group’s revenue also declined almost 8% to RM1.07 bil from RM1.16 bil previously.

It attributed the weaker revenue to lower contributions from its grains and agribusiness, consumer products, film exhibition and distribution (via Golden Screen Cinemas), and environmental engineering and utilities segments, while its property segment’s revenue remained relatively unchanged.

PPB Group said amid a challenging operating environment that would affect the film exhibition and distribution and property businesses, the group’s other main segments were expected to perform satisfactorily.

It said the performance of its 18.5%-owned associate Wilmar, which is one of Asia’s leading agri-business players with over 500 manufacturing plants, would continue to contribute substantially to the overall profitability of the group.

Wilmar accounted for about 75% of the group’s pre-tax profit for the financial year ended Dec 31, 2019. – May 29, 2020, Bernama

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