KUALA LUMPUR, May 19 -- Despite the anticipation of a gloomy global economic outlook in light of COVID-19, PPB Group Bhd said its grains and agribusiness segment will perform satisfactorily, supported by well-established market position.
The sector remained the largest contributor to the conglomerate’s revenue last year, contributing 68 per cent to the group's revenue and 16 per cent of its profit last year. It comprises of flour milling, feed milling and livestock farming.
The sector would also ride on the fact that demand for essential basic food products during the Movement Control Order (MCO)/Conditional MCO to remain resilient in any economic environment.
“The consumer products segment is expected to be stable with the support of new agency products.
“While the film exhibition and distribution segment is affected by disruptions from the COVID-19 pandemic and the MCO, we are implementing safety measures to provide assurance to moviegoers to return to the cinemas when the MCO/CMCO is lifted,” managing director Lim Soon Huat said in the company’s financial report.
Lim noted the diversified conglomerate is well-positioned to weather this challenging period and will be able to capitalise on new cinemas opened in 2019 when the situation improves and titles which have been postponed are released.
Meanwhile, the environmental engineering and utilities segment would continue to focus on replenishing its order book and exploring new project opportunities while the property segment would continue to execute its existing projects and improve the yield of its existing investment properties.
“Therefore, while the overall group financial results depend substantially on Wilmar’s business performance, most of the group’s main business segments are expected to perform satisfactorily in the financial year 2020,” he added.
PPB is a diversified conglomerate which engages in food production, agriculture, waste management, film distribution, property investment and development.
Chairman Tan Sri Oh Siew Nam said PPB would continue to strengthen its business to face various challenges by managing its resources efficiently and driving operational excellence across its operations.
“We are, however, concerned with the recent COVID-19 pandemic and the severe and long-drawn-out effects on the global economy. Notwithstanding this, we are confident that the strategies we have put in place will enable us to sustain our growth,” he said.
The group revenue increased by three per cent to RM4.68 billion in 2019, compared with the RM4.53 billion recorded in 2018, largely due to higher revenue recorded by the grains and agribusiness, film exhibition and distribution and property segments.
Its profit before taxation was also higher by nine per cent at RM1.27 billion for 2019 (2018: RM1.17 billion) due to higher contribution from Wilmar of RM960 million (2018: RM837 million), as well as increased profits from the grains and agribusiness segment, which climbed 17 per cent to RM213 million (2018: RM183 million).
PPB Group declared a second interim dividend of 23 sen per share and together with the 8 sen per share first interim dividend, which brings PPB's total dividend for FY2019 to 31 sen per share (FY2018 – 28 sen per share).
The second interim dividend is payable on 2 June 2020.
At 12.29 pm, shares of PPB rose 0.24 per cent to RM16.72.
Malaysia National News Agency
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