Press Releases

FINANCIAL HIGHLIGHTS OF FY2024

• For 1H2024, PPB Group recorded lower revenue of RM2.61 billion whilst Group pre-tax profit improved by 8% to RM701 million. The higher profits were mainly attributable to the higher contribution from Wilmar International Limited (“Wilmar”) by 11% to RM510 million.  Excluding the one-off gain on disposal of Yihai Kerry (Shenyang) Oils, Grains & Foodstuffs Industries Co. Ltd (“YKS”) in 1H2024 amounting to RM12.6 million (1H2023 : Gain on divestment of a subsidiary, Malayan Adhesives & Chemicals Sdn Bhd of RM24.5 million), the Group’s core business segments recorded a 9% increase in profit before tax to RM178 million in 1H2024 mainly attributable to improved performance from the Grains and Agribusiness segment, partially offset by lower contribution from the Film Exhibition and Distribution segment.
• Group profit for the period was higher at RM660 million, up 10% compared with RM600 million in 1H2023. Earnings per share was at 45.42 sen, 11% higher compared with 40.80 sen in 1H2023.

DIVIDEND

PPB has declared an interim dividend of 12 sen per share for the financial year ending 31 December 2024, payable on 26 September 2024 to shareholders whose names appear in the Record of Depositors on 13 September 2024.

REVIEW OF OPERATIONS

The results of PPB’s main business operations for 1H2024 are summarised as follows :-

• Grains and Agribusiness segment revenue for 1H2024 decreased by 17% to RM1.88 billion, mainly attributable to the absence of revenue contribution from the divested Indonesia flour operations. Excluding that, segment revenue for 1H2024 was relatively unchanged.  The segment recorded a profit of RM170 million in 1H2024.  Excluding the gain on disposal of YKS, the segment recorded a 24% profit increase to RM157 million, mainly contributed by the flour and feed sub-segments.
• Consumer Products segment revenue for 1H2024 was higher at RM395 million, up 2%. Segment profit was lower for 1H2024 at RM3 million, down 76% attributable mainly to higher trade promotion and operational costs.
• Film Exhibition and Distribution segment revenue increased by 1% to RM300 million and turned around to a profit for 1H2024 at RM1.0 million from an RM15 million loss recorded in 1Q2024 (1H2023 : RM14 million).  The lower profit was mainly attributable to higher new cinema operating costs as well as cinema closure costs.
• Property segment revenue for 1H2024 was lower by 40% at RM27 million due mainly to the absence of revenue recognised on the sold units at the Megah Rise residential project, partially offset by the improved malls performance.  Segment profit was up 5% to RM3.5 million.
• Other Operations segment recorded a profit of RM541 million, up 7% mainly attributable to the higher contribution from Wilmar.

PROSPECTS FOR 2024

Despite higher volatility in grain prices in 2Q2024, the performance of our Grains and Agribusiness segment remained resilient as we leveraged our market intelligence and extensive experience in grain procurement.  The Group remains cautious about the potential adverse weather conditions in key grains growing regions that could affect global prices.  However, our strong technical expertise in product formulation and quality assurance continues to drive sales growth and enhance margins.  The Group is well-positioned to navigate the market challenges and seize opportunities to sustain satisfactory performance for the remainder of the year.

Despite the rising business costs, the Consumer Products segment remained focused on improving marketing efficiency through our established network and logistical resources, while also expanding our product range and market presence.  We expect the segment’s performance to remain satisfactory for the rest of the year.

The Film Exhibition and Distribution segment posted a profit in the second quarter of 2024, driven by a more robust lineup of movies and significant contributions from both local and regional releases.  However, with Hollywood’s production and supply still in the early stages of recovery, we maintain a cautious outlook for the segment as we transition into the second half of the year.

With several property development projects at various stages of planning, enhancing mall performance will be a key driver for the Property segment in 2024.

Wilmar’s performance will continue to contribute substantially to the overall profitability of the Group.

5 September 2024

Contact :- Ms Susan Chia, Senior Manager, Sustainability & Corporate Affairs of PPB Group Berhad
Telephone : 03-27260088
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

FINANCIAL HIGHLIGHTS OF FY2023

• PPB Group revenue decreased by 9% to RM5.72 billion in FY2023 (FY2022 : RM6.26 billion).
• Group pre-tax profit of RM1.49 billion was 34% lower than FY2022 of RM2.25 billion mainly attributable to the lower contribution from our 18.8% associate, Wilmar International Limited (Wilmar) which contributed RM1.30 billion for FY2023 (FY2022 : RM2.10 billion), down 38%. The Group’s core business segments recorded a marked overall improvement in pre-tax profit of RM189 million in FY2023 (FY2022 : RM151 million), up 25%.
• Profit after tax for FY2023 was RM1.42 billion and earnings per share was 98.01 sen.

PROPOSED FINAL DIVIDEND OF 30 SEN PER SHARE

PPB’s Board has recommended a final dividend of 30 sen per share for FY2023 subject to approval by PPB shareholders at the 55th Annual General Meeting to be held on 17 May 2024. The final dividend is payable on 7 June 2024 to shareholders whose names appear in the Record of Depositors on 21 May 2024.

Together with the interim dividend of 12 sen per share, the total dividends paid and payable for FY2023 would be 42 sen per share (FY2022 : 40 sen per share).

REVIEW OF OPERATIONS

The results of PPB’s business operations for 2023 are summarised as follows :-

• Revenue from the Grains and Agribusiness segment was 9% lower at RM4.26 billion (FY2022 : RM4.66 billion) due mainly to lower revenue from the Indonesia flour operations, which was divested on 12 September 2023. This segment recorded higher profit at RM230 million (FY2022 : RM74 million) largely attributable to improved performance at the flour, feed and livestock divisions which was partially offset by losses at the divested Indonesia flour operations and a provision for the MyCC penalty.
• Consumer Products segment revenue increased by 1% to RM761 million (FY2022 : RM751 million). Segment profit for FY2023 was lower at RM26 million (FY2022 : RM34 million) mainly attributable to higher trade promotion and operating costs.
• Revenue from Film Exhibition and Distribution segment increased by 11% to RM570 million (FY2022 : RM515 million). This segment reported a higher loss of RM120 million for FY2023 (FY2022 : RM17 million loss), primarily attributable to impairments on the Vietnam operations which amounted to RM60 million (FY2022 : RM27 million); and on the Malaysia cinema assets amounting to RM53 million. Excluding these impairments, the segment recorded a loss of RM8 million in FY2023 (FY2022 : RM10 million profit) which was mainly attributable to higher cinema operating costs.
• Property segment registered revenue and profit of RM117 million (FY2022 : RM141 million) and RM17 million (FY2022 : RM35 million) respectively, due mainly to lower progressive profit recognition from the Megah Rise Residensi units sold as the project was completed in August 2022.

PROSPECTS FOR 2024

With the correction of world grain prices in 2023 from its peak in 2022, the performance of the Grains and Agribusiness segment improved significantly in 2023, particularly the Malaysia operations. Nevertheless, we expect competition to be intense; with continued volatility in the global grain commodity markets primarily influenced by the ongoing risks associated with uncertain weather conditions in major grains growing countries. We will continue to leverage on our extensive experience in grain procurement and expertise in product formulation to drive operational efficiency. We are cautiously optimistic that the Grains and Agribusiness segment will deliver a satisfactory set of results in 2024.

The consumer market is expected to face challenges from prevailing consumer sentiment and spending patterns. However, we expect the Consumer Products segment to continue to perform well in 2024, as the segment remains focused on the business of the manufacturing and distribution of consumer staple food and continues to expand its product range.

The Film Exhibition and Distribution segment recorded a loss in the fourth quarter of 2023 as a result of the deferment of several key blockbuster titles due to the actors' and writers' strikes in Hollywood, and cinema impairments. The strikes which ended in the last quarter of 2023, have also affected production and supply of movie content in the medium term. We anticipate a challenging 2024 for this segment as it is substantially dependent on the supply of content. However, the impact will be partially cushioned by local and regional releases as well as contributions from events and F&B business.

With several property development projects being planned at various stages, improving mall performance will be the key driver for the Property segment in 2024.

Wilmar's performance will continue to contribute substantially to the overall profitability of the Group.

Contact :-Ms Susan Chia, Senior Manager, Sustainability & Corporate Affairs of PPB Group Berhad
Telephone : 012-2832301
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

FINANCIAL HIGHLIGHTS FOR 1H2021

• PPB Group revenue increased by 9% to RM2.2 billion in 1H2021 mainly due to higher revenue from the Grains and Agribusiness segment.
• Group pre-tax profit remained stable at RM591 million. The weaker performance recorded by the Group’s core segments was mitigated by the increase in profit contribution from its 18.6% associate, Wilmar International Limited (Wilmar).  Wilmar’s profit contribution was RM594 million, up 33% compared with 1H2020.
• Profit for the period was higher at RM586 million, up 13% compared with RM520 million recorded in 1H2020.  Earnings per share was at 41.17 sen, 13% higher compared with 1H2020 of 36.55 sen.

DIVIDEND
PPB has declared an interim dividend of 10 sen per share for the financial year ending 31 December 2021 payable on 28 September 2021 to shareholders whose names appear in the Record of Depositors on 10 September 2021.

REVIEW OF OPERATIONS
The results of PPB’s main business operations for 1H2021 are summarised as follows :-

• Grains and Agribusiness segment revenue for 1H2021 increased by 9% to RM1.7 billion whilst segment profit was lower at RM52 million compared with RM181 million in 1H2020. The sharp rise in commodity prices led to a significant increase in raw material costs of flour and feed products; and with limited price-in mechanism, gross profit margin compression was seen across the sub-segments.
• Consumer Products segment revenue for 1H2021 remained stable at RM320 million. Segment profit was significantly lower at RM0.4 million for 1H2021 compared with RM20.1 million recorded for the 1H2020 mainly due to the one-off gain of RM10 million on the step-acquisition of an associate in 1H2020, in addition to the increased cost of goods sold on the back of the rising commodity prices.
• Film Exhibition and Distribution segment revenue declined significantly by 48% to RM41 million and recorded segment loss of RM59 million, a decline of 3% from 1H2020. The performance of this segment was significantly impacted by the prolonged closure of cinemas during the Movement Control Order (“MCO”).
• Environmental Engineering and Utilities registered higher segment revenue at RM94 million, up 63% whilst segment profit decreased by 39% to RM4 million as operations were impacted by the lockdown and reduced operation capacity with the MCO in place during most of 1H2021.
• The Property segment revenue and segment profit increased by >100% to RM53 million and RM6 million respectively. This was mainly attributable to higher revenue recognised from the development of the Megah Rise project.

PROSPECTS
Global agricultural commodity prices have risen substantially this year, particularly for food commodities. It is expected that the food commodity prices will remain highly volatile given the potential disruption of supply in major producing countries affected by poor weather and rising demand of the grains as more countries' economies start to reopen.

Performance of the Grains and agribusiness segment has been adversely impacted by the spike in commodity prices, particularly in the second quarter of this year. Gross profit margin compression was seen across various sub-segments of this segment. Management will continue to navigate the challenging situation in dealing with a highly volatile commodity market. Riding on the Group’s experience in both the commercial and technical aspects, the Grains and agribusiness segment aims to deliver an improved set of results for the following quarters.

The Consumer products segment is expected to perform satisfactorily as it continues to expand its market place through the food services channel and e-commerce platform.

The acceleration of the National Immunization Program (NIP) and the subsequent lifting of restrictions will be key for the recovery of the Film exhibition and distribution segment. During this transition period of the NIP, management will continue its efforts to expand online business initiatives pending the reopening of its enlarged cinema chain with the newly acquired cinema assets of the former MBO cinema circuit. Stringent cost control remains as our top priority to improve operating cash flow and financial performance.

The Environmental engineering and utilities segment will continue to focus on replenishing its order book and exploring new project opportunities.

Performance of the Property segment continued to be impacted by the ongoing Movement Control Order.  Management remains steadfast in working on various initiatives to improve footfall in its malls and completing the development of the Megah Rise project.

The Covid-19 pandemic will continue to weigh down on the Film exhibition and distribution and Property segments. The Grains and agribusiness segment, which is in the production and distribution of staple food and services, is expected to ride through the challenging operating environment and to deliver a satisfactory set of results for the rest of the year. Wilmar's performance will continue to contribute substantially to the overall profitability of the Group.

FINANCIAL HIGHLIGHTS OF 1H2023

• For 1H2023, PPB Group revenue increased marginally to RM3.0 billion whilst Group pre-tax profit declined by 35% to RM648 million. The lower profits were mainly attributable to the lower contribution from Wilmar International Limited (“Wilmar”) by 54% to RM460 million.  The Group’s core business segments, however, recorded a profit of RM188 million in 1H2023 as compared to a loss of RM1.0 million in 1H2022.
• Group profit for the period was lower at RM600 million, down 40% compared with RM998 million recorded in 1H2022. Earnings per share was at 40.80 sen, 42% lower compared with 70.05 sen in 1H2022.

DIVIDEND

PPB has declared an interim dividend of 12 sen per share for financial year ending 31 December 2023, payable on 22 September 2023 to shareholders whose names appear in the Record of Depositors on 13 September 2023.

REVIEW OF OPERATIONS

The results of PPB’s main business operations for 1H2023 are summarised as follows :-

• Grains and Agribusiness segment revenue for 1H2023 increased by 4% to RM2.26 billion. The segment recorded a profit of RM127 million in 1H2023 mainly due to the improved performance of the Malaysian operations with higher sales and profit margin, on the back of a less volatile grains commodity market during the period under review.
• Consumer Products segment revenue for 1H2023 was higher at RM388 million, up 3%. Segment profit was lower for 1H2023 at RM12 million attributable mainly to lower sales of consumer products and higher trade promotion expenses.
• Film Exhibition and Distribution segment revenue increased by 34% to RM296 million for 1H2023 whilst the segment turned around with a profit of RM14 million on the back of a 33% and 42% increase in box office collections and admissions respectively for the Malaysian operations, coupled with strong contribution from the Vietnam operations.
• Property segment revenue and profit for 1H2023 was lower by 45% and 85% at RM45 million and RM3 million respectively. The lower revenue and profit were mainly attributable to the absence of progressive profit recognised for sold units as the Megah Rise residential project was fully completed in August 2022, and higher mall operating costs.

PROSPECTS 

The global grains commodity market remained moderately volatile as the global supply risk could reemerge with any escalation of geopolitical tension between Ukraine and Russia, as well as weather conditions affecting the production forecast of grains-growing countries.

The performance of the Grains and Agribusiness segment has improved significantly in the first half of 2023 as compared to a year ago.  However, any downside supply risk could affect the performance of the segment for the rest of the year.

With a strong first-half performance, and our continuous efforts to drive production and cost efficiency, we expect the Grains and Agribusiness segment to perform satisfactorily.

The Consumer Products segment is expected to deliver a satisfactory set of results by capitalising on its established nationwide distribution network and integrated warehousing and marketing system, while continuing its efforts to expand its consumer products range and widen its distribution base.

The Film Exhibition and Distribution segment had a strong close in the second quarter of 2023. For the rest of the year, we anticipate the Malaysian cinema industry performance to remain resilient with the upcoming lineup of strong movie titles, which should contribute positively to the segment's performance in 2023.  However, the recent actors and writers’ strikes in Hollywood may potentially affect the filming of movies and cause delays to a number of blockbuster releases, we are cautiously optimistic about the performance of the segment in 2023.

We expect the Property segment to perform satisfactorily as the new development projects in Kedah and Penang are in their final planning stages. Improved malls occupancy and footfall are expected to drive segment revenue in 2023.

Wilmar's performance will continue to contribute substantially to the overall profitability of the Group.

FINANCIAL HIGHLIGHTS OF FY2022

• PPB Group revenue increased by 29% to RM6.26 billion in FY2022 (FY2021 : RM4.86 billion). All core segments recorded higher revenue.
• Group unaudited pre-tax profit of RM2.25 billion was 50% higher than the RM1.50 billion in FY2021 mainly due to higher profit contribution from its 18.8% associate, Wilmar International Limited (Wilmar) which contributed RM2.10 billion for FY2022 (FY2021 : RM1.50 billion), up 40%.
• Profit after tax for FY2022 was RM2.22 billion and earnings per share was 154.43

PROPOSED FINAL DIVIDEND OF 28 SEN PER SHARE

PPB’s Board has recommended a final dividend of 28 sen per share for FY2022 subject to shareholders’ approval at the 54th Annual General Meeting to be held on 17 May 2023.  The final dividend is payable on 8 June 2023 to shareholders whose names appear in the Record of Depositors on 19 May 2023. 

Together with the interim dividend of 12 sen per share, the total dividend paid and payable for FY2022 would be 40 sen per share (FY2021 : 35 sen per share).

REVIEW OF OPERATIONS

The results of PPB’s business operations for 2022 are summarised as follows :-

• Revenue from the Grains and agribusiness segment was 26% higher at RM4.66 billion (FY2021 : RM3.69 billion). This segment recorded a profit at RM74 million (FY2021 : RM62 million), up 21% largely due to a more stable grain community market.
• Consumer products segment revenue increased by 17% to RM751 million (FY2021 : RM644 million). Segment profit for FY2022 was at RM34 million (FY2021 : RM7 million) mainly attributable to higher sales of bakery and other fast-moving consumer products.
• Revenue for the Film Exhibition and Distribution segment increased significantly to RM515 million (FY2021 : RM116 million) whilst segment losses reduced to RM17 million for FY2022 (FY2021 : RM113 million loss). Excluding the impairment on investment in an associate in Vietnam amounting to RM27 million, the segment made a profit of RM10 million for FY2022.  A five-fold increase in admissions and box office collections were the main contributing factors for the return to profitability of the Malaysian operations of this segment.
• The Property segment recorded revenue and profit of RM141 million (FY2021 : RM114 million) and RM35 million FY2022 (FY2021 : RM15 million) respectively mainly attributable to new sales and progressive profit recognition from the completed Megah Rise residential project as well as improvement in overall mall business performance.

PROSPECTS FOR 2023

Performance of the Grains and agribusiness segment improved as grain commodity prices stabilised, particularly in the second half of 2022.  PPB expects grain commodity prices to remain volatile given the uncertain weather conditions in the major grains-growing countries and on-going Russian-Ukraine war. To navigate the challenges ahead, the segment will continue to leverage on its market intelligence to drive procurement and operational efficiencies.  The segment is expected to deliver a satisfactory performance in 2023.

The Consumer products segment has performed well in 2022 and is expected to improve amid recovery of consumer spending. The segment will continue to improve operational efficiencies through its integrated marketing system and established nationwide distribution network in distributing a widely-accepted range of necessities, and in expanding its range of consumer products.

The Malaysian operations of the Film exhibition and distribution segment closed on a positive note in the fourth quarter of 2022, attributable mainly to better performance of several major blockbusters during the holiday season.  For 2023, PPB expects performance of the segment to improve further with the release of more tent pole movies, and support from positive consumer sentiment and confidence.

The Property segment will continue to focus on planned development projects in Kedah and Penang, as well as enhancing its malls performance and the segment is expected to perform satisfactorily.

Wilmar’s performance will continue to contribute substantially to the overall profitability of the Group.

FINANCIAL HIGHLIGHTS OF YEAR 2019

• PPB Group revenue rose 3% to RM4.68 billion in FY2019 (FY2018 : RM4.53 billion) mainly attributed to higher revenue recorded from Grains and agribusiness; Film exhibition and distribution; and Property segments.
• Group pre-tax profit of RM1.27 billion was 9% higher than FY2018 of RM1.17 billion mainly due to higher profit contribution from our 18.5% associate, Wilmar International Limited (Wilmar) which contributed RM960 million for FY2019 (FY2018 : RM837 million); and higher profits from Grains and agribusiness
• Profit after tax for FY2019 was RM1.2 billion and earnings per share was 81.02 sen.

DIVIDEND
PPB’s Board has recommended a final dividend of 23 sen per share for FY2019 subject to approval by PPB shareholders at the 51^st Annual General Meeting to be held on 14 May 2020.  The final dividend is payable on 2 June 2020 to shareholders whose names appear in the Record of Depositors on 18 May 2020.

Together with the interim dividend of 8 sen per share, the total dividend paid and payable for FY2019 would be 31 sen per share (FY2018 : 28 sen per share).

REVIEW OF OPERATIONS
The results of PPB’s business operations for 2019 are summarised as follows :-

• Revenue from the Grains and agribusiness segment was up by 5% to RM3.3 billion (FY2018 : RM3.15 billion) mainly attributable to higher flour prices. Segment profit increased by 17% to RM213 million (FY2018 : RM183 million) mainly due to higher flour prices, partially offset by higher raw material costs.
• Consumer products segment revenue was lower by 2% at RM 627 million (FY2018 : RM641 million). Segment profit was lower at RM647,000 (FY2018 : RM7 million) due mainly to lower sales of in-house products and higher operating costs at the bakery division.
• Revenue from the Film exhibition and distribution segment rose by 2% to RM556 million (FY2018 : RM545 million) whilst segment profit maintained at RM67 million in (FY2018 : RM67 million). The higher revenue was driven by improved F&B sales and advertising income.  Despite higher revenue, profit was offset by higher operating costs.
• Environmental engineering and utilities segment revenue and profit were at RM195 million (FY2018 : RM205 million) and RM11 million (FY2018 : RM21 million) respectively. The lower profit was mainly due to one-off impairment of an overseas joint venture.
• Property segment revenue went up by 14% to RM65 million (FY2018 : RM57 million) whilst segment profit was lower by 57% to RM14 million (FY2018 : RM32 million). The decline in segment profit was mainly attributable to the lower share of profit from an associate.

PROSPECTS FOR 2020
Grains and agribusiness segment is expected to perform satisfactorily supported by our well established market position and technical strength in maintaining good and consistent quality products, riding also on the fact that demand for essential basic food products will remain resilient in any economic environment, despite volatile grains commodity and foreign exchange market conditions.  The Consumer products segment is expected to be stable with support of new agency products.  While the Film exhibition and distribution segment is expected to be impacted by disruptions from the Covid-19 outbreak in the first quarter of the year, this segment is well positioned to maintain its market leadership with the full year performance of new cinemas opened in 2019 and strong lineup of new titles.  The Environmental engineering and utility segment will continue to focus on replenishing its order book and exploring new project opportunities.  The Property segment will continue to execute its existing projects and improve yield of its existing investment properties.

While the overall Group financial results depend substantially on Wilmar's business performance, the Group’s main business segments are expected to perform satisfactorily in financial year 2020.

FINANCIAL HIGHLIGHTS FOR 1H2022

• For 1H2022, PPB Group revenue increased by 34% to RM2.96 billion whilst Group pre-tax profit rose 68% to RM991 million. All key segments recorded improved performance coupled with the increase in contribution from Wilmar International Limited (“Wilmar”) by 67% to RM992 million.
• Group profit for the period was higher at RM998 million, up 68% compared with RM595 million recorded in 1H2021. Earnings per share was at 70.05 sen, 70% higher compared with 41.17 sen in 1H2021.

DIVIDEND

PPB has declared an interim dividend of 12 sen per share for financial year ending 31 December 2022, payable on 28 September 2022 to shareholders whose names appear in the Record of Depositors on 9 September 2022.

REVIEW OF OPERATIONS

The results of PPB’s main business operations for 1H2022 are summarised as follows :-

• Grains and Agribusiness segment revenue for 1H2022 increased by 31% to RM2.2 billion. The segment recorded a profit of RM115 million in 2Q2022 as compared to a loss of RM72 million recorded in 2Q2021; with that, the 1H2022 loss narrowed to RM23 million compared with RM52 million profit in 1H2021. The marked improvement in performance was attributable to hedging gains on derivative instruments as grain prices stabilised during the second quarter of 2022.
• Consumer Products segment revenue and profit for 1H2022 were higher at RM378 million and RM13 million. The improved performance was mainly due to higher sales of bakery and other fast-moving consumer products.
• Film Exhibition and Distribution segment revenue increased significantly to RM221 million compared with RM41 million in 1H2021 whilst the loss for 1H2022 reduced to RM8 million as compared with RM59 million loss recorded in 1H2021. The full reopening of cinemas, the opening of the newly acquired former MBO cinemas, higher admissions as well as a six-fold increase in box office collections, are the main factors which contributed positively to the overall performance of this segment.
• Environmental Engineering and Utilities registered lower segment revenue and segment profit of RM68 million and RM1.2 million, down 28% and 71% respectively due to lower project revenue recognised and higher project cost incurred.
• The Property segment revenue for 1H2022 was higher at RM82 million, up 56% whilst segment profit increased by >100% to RM22 million. The improvement was mainly attributable to new sales and progressive profit recognition of the Megah Rise development project, as well as improvement in overall mall business performance.

PROSPECTS

Grain commodity prices have now stabilized to a level closer to the pre-Russian-Ukraine conflict as global supply concerns eased. However, the flowthrough effect of high raw material prices on production costs, as well as high logistics costs will remain, given the lag effect of procurement and production cycles, in addition to limitations in our price-in mechanism. The Grains and agribusiness segment will continue its efforts to preserve margins by improving its product performance and enhancing its operational efficiency.

We expect our Consumer products segment, which mainly distributes basic necessities, to perform satisfactorily on the back of improving consumer sentiment as the country transitions into endemicity.

The Film exhibition and distribution segment saw strong quarter-to-quarter improvement due to the release of summer blockbuster titles. The scheduled movie line-up for the second half of 2022 is expected to contribute positively to the segment. Management will remain cautious in spending during this recovery stage of the industry and continue to optimise resources.

The Environmental engineering and utilities segment will continue to focus on replenishing its order book and exploring new project opportunities.

The Megah Rise development project is on schedule to be completed by the end of the 3rd quarter. Coupled with the increased footfall in our malls, performance of the Property segment is expected to be satisfactory.

Wilmar's performance will continue to contribute substantially to the overall profitability of the Group.

FINANCIAL HIGHLIGHTS FOR 1H2020

• PPB Group revenue decreased by 12% to RM2.02 billion in 1H2020 as lower revenue was recorded by all core group segments.
• Group pre-tax profit increased by 28% to RM591 million compared with RM461 million for 1H2019, mainly attributable to higher contribution from Wilmar International Limited at RM447 million compared with RM310 million recorded in 1H2019. Core group profit was however, lower by 4.8%.
• Profit for the period was higher at RM552 million, up 29% compared with RM428 million recorded in 1H2019.  Earnings per share was at 36.5 sen, 27% higher compared with 1H2019 of 28.7 sen.
  

DIVIDEND
PPB has declared an interim dividend of 8 sen per share for the financial year ending 31 December 2020 payable on 29 September 2020 to shareholders whose names appear in the Record of Depositors on 11 September 2020.

REVIEW OF OPERATIONS
The results of PPB’s main business operations for 1H2020 are summarised as follows :-

• Grains & Agribusiness segment revenue for 1H2020 decreased by 3% to RM1.59 billion due to lower sales volume of flour and feed. Segment profit increased to RM181 million compared with RM85 million in 1H2019 mainly attributable to higher efficiency and better management of raw material costs.
• Consumer Products revenue for 1H2020 remained stable at RM326 million. Segment profit improved to RM10 million for 1H2020 compared with RM3 million in 1H2019 mainly due to improved performance at the bakery division.
• Film Exhibition & Distribution revenue declined significantly by 71% to RM80 million and recorded a loss of RM61 million compared with a profit of RM39 million in 1H2019. The performance of this segment was significantly impacted by the closure of the cinemas during the Movement Control Order (“MCO”) period up to 30 June 2020.
• Environmental Engineering & Utilities registered lower revenue of RM58 million, down 18% due to work delay during the MCO period. Segment profit remained stable at RM7 million.
• Property segment revenue decreased by 23% to RM22 million. The segment recorded a loss of RM4 million compared to a RM11 million profit previously, mainly attributable to lower mall-related rental income during the MCO period.

PROSPECTS FOR 2020

The Grains and Agribusiness segment weathered a challenging operating environment, with volatility in grain prices and foreign exchange market. Given this segment is in the production and distribution of essential food products, it has not been significantly impacted by the Covid-19 pandemic and is expected to perform satisfactorily in the second half of 2020.

The Consumer Products segment endeavours to maintain the momentum of sales by focusing on food services and other channels via the e-commerce marketplace. The segment is expected to perform satisfactorily in 2H2020.

The Film Exhibition and Distribution segment continues to be affected by the Covid-19 pandemic as most movie title releases were deferred to 2021.  Management will continue to implement cost optimisation measures and stringent cash flow management to deal with the current operating environment.

The Environmental Engineering and Utilities segment will continue to focus on replenishing its order book and exploring new project opportunities.

Performance of the Property segment also remains challenging, both in investment properties and property development. Various measures are being taken to address the reduced footfall in our malls as well as slower sales of properties.

The Covid-19 pandemic continues to weigh on our Film Exhibition and Distribution and Property segments; the other main business segments, which are mainly in the production and distribution of essential products and services, are expected to perform satisfactorily. Wilmar's performance will continue to contribute substantially to the overall profitability of the Group.

FINANCIAL HIGHLIGHTS OF FY2020

• PPB Group revenue declined by 11% to RM4.19 billion in FY2020 (FY2019 : RM4.68 billion) mainly attributed to lower revenue from Film exhibition and distribution
• Group pre-tax profit of RM1.42 billion was 12% higher than FY2019 of RM1.27 billion mainly due to higher profit contribution from our 18.6% associate, Wilmar International Limited (Wilmar) which contributed RM1.24 billion for FY2020 (FY2019 : RM960 million). Core group profit was, however, lower by 43%.
• Profit after tax for FY2020 was RM1.36 billion and earnings per share was 92.57 sen.

PROPOSED SPECIAL AND FINAL DIVIDENDS TOTALING 38 SEN PER SHARE
PPB’s Board has recommended a final dividend of 22 sen per share and a special dividend of 16 sen per share for FY2020 subject to approval by PPB shareholders at the 52nd Annual General Meeting to be held on 11 May 2021.  The final and special dividends are payable on 1 June 2021 to shareholders whose names appear in the Record of Depositors on 17 May 2021.

Together with the interim dividend of 8 sen per share, the total dividend paid and payable for FY2020 would be 46 sen per share (FY2019 : 31 sen per share).

REVIEW OF OPERATIONS
The results of PPB’s business operations for 2020 are summarised as follows :-

• Revenue from the Grains and agribusiness segment was relatively unchanged at RM3.29 billion (FY2019 : RM3.3 billion).  Segment profit increased by 28% to RM272 million (FY2019 : RM213 million) mainly attributable to lower raw material costs and higher share of profits from its associates.
• Consumer products segment revenue remained unchanged at RM628 million (FY2019 : RM627 million).  Segment profit was higher at RM32 million (FY2019 : RM647,000) due mainly to a one-off gain on step-acquisition of an associate of RM21 million and better performance at the bakery division.
• Segment results of Film Exhibition and Distribution were significantly impacted by reduced admissions, intermittent closure of cinemas and deferment of movie titles during the year as the country fought the Covid-19 pandemic through the Movement Control Order (“MCO”).  Film Exhibition and Distribution segment incurred a loss of RM136 million for FY2020 (FY2019 : RM67 million profit).
• Environmental engineering and utilities segment revenue was lower by 3% at RM190 million (FY2019 : RM195 million).  Profit was higher by 28% at RM14 million (FY2019 : RM11 million) mainly attributable to share of profit from joint venture as a one-time impairment of an overseas joint venture of RM8.9 million was made in FY2019.  Excluding that, performance was also affected by slower project activities due to the imposition of MCO during the year.
• Property segment recorded revenue and profit of RM67 million (FY2019 : RM65 million) and RM4 million (FY2019 : RM14 million) respectively due to lower rental income and the absence of a one-time gain on disposal of property of RM4.7 million in FY2019.

PROPOSED ACQUISITION OF CINEMA ASSETS
On 23 February 2021, Golden Screen Cinemas Sdn Bhd (GSC) signed an Asset Sale Agreement to acquire the majority of cinema assets from MCAT Box Office Sdn Bhd and Reel Entertainment Holdings Sdn Bhd (both in creditors’ voluntary winding up), operators of the former MBO cinema circuit.  The acquisition is expected to complete by end of June 2021.

This strategic acquisition will help accelerate growth and strengthen the market leadership position of GSC moving forward.

PROSPECTS FOR 2021
The Grains and agribusiness segment is expected to weather the volatile commodities market. The segment, which is in the business of production and distribution of staple food, is expected to perform satisfactorily, riding on its strong technical competency, extensive marketing and distribution network as well as in-depth procurement experience.

The Consumer Products segment is expected to perform satisfactorily as the Group endeavours to expand sales into the food service channel and e-commerce marketplace.  

The Film exhibition and distribution segment performance will be weighed down by intermittent cinema closures, operating in reduced seating capacity due to strict adherence to maintaining social distancing, and deferment of movie titles releases.  Management is confident that the movie industry will start to recover as the Covid-19 cases are brought under control and after the planned rollout of the vaccination programme in February 2021. We remain resilient during this transitory period and continue to work on revenue diversification and cost optimisation initiatives, in addition to stringent cash flow management.

The Environmental engineering and utilities segment will continue to focus on replenishing its order book and exploring new project opportunities.

Performance of the Property segment remains challenging, both in the area of investment properties and property development. Management will continue to work on various initiatives to improve footfall in our malls as well as to increase sales of our development properties.

The Covid-19 pandemic will continue to weigh on our Film exhibition and distribution and Property segments. The other main business segments, which are mainly in the production and distribution of staple food and services, are expected to perform satisfactorily. Wilmar's performance will continue to contribute substantially to the overall profitability of the Group.

 FINANCIAL HIGHLIGHTS FOR 1H2019

• PPB Group revenue increased by 4% to RM2.31 billion in 1H2019. The increase was attributed to higher revenue from the Grains & Agribusiness and Film Exhibition & Distribution
• Group pre-tax profit decreased by 15% to RM461 million compared with RM546 million for 1H2018, mainly due to lower contribution from Wilmar International Limited, and lower profits from the Grains & Agribusiness, Consumer Products and Environmental Engineering & Utilities
• Profit for the period was lower at RM428 million, down 16% compared with RM507 million recorded in 1H2018. Earnings per share was at 28.71 sen, 17% lower compared with 1H2018 of 34.72 sen.

DIVIDEND

PPB has declared an interim dividend of 8 sen per share for the financial year ending 31 December 2019 payable on 2 October 2019 to shareholders whose names appear in the Record of Depositors on 17 September 2019.

REVIEW OF OPERATIONS

The results of PPB’s main business operations for 1H2019 are summarised as follows :-

• Grains & Agribusiness segment’s revenue for 1H2019 increased by 6% to RM1.63 billion due to higher flour sales. Segment profit decreased by 14% to RM85 million mainly due to weaker performance of the feed division.
• Consumer Products segment revenue for 1H2019 remained stable at RM332 million. Segment profit declined by 62% to RM3 million for 1H2019 mainly due to lower sales of in-house products; and higher operating costs at the bakery division.
• Film Exhibition & Distribution segment revenue was up 8% to RM274 million whilst segment profit increased 34% to RM39 million due to higher contribution from the distribution of Chinese New Year movies and local Malay titles as well as release of strong titles.
• The Environmental Engineering & Utilities registered lower segment revenue and profit of RM71 million and RM7 million respectively compared with 1H2018 as several new projects are at the initial stage of implementation.
• The Property segment revenue increased by 17% to RM29 million mainly attributable to higher progress billings from the Megah Rise project. Segment profit increased by 6% due to a one-time gain on sale of land and building of RM5 million which was offset by the lower contribution from mall operations as well as lower profit from property development.

CAPITAL AND OTHER COMMITMENTS

Total capital and other commitments as at 30 June 2019 amounted to RM794 million as follows :-

PROSPECTS FOR 2019

Notwithstanding a volatile commodity and foreign exchange market, the Grains and agribusiness segment will capitalise on its established market position and synergistic strategies to remain resilient. The segment is expected to perform satisfactorily. Performance of the Consumer products segment is expected to remain stable for the rest of the year. The Film exhibition and distribution segment is expected to be supported by introduction of new cinematic technology and facilities in selected locations, opening of new cinemas and strong title releases. The Environmental engineering and utilities segment will continue to focus on replenishing its order book and exploring new project opportunities. The Property segment will continue to execute its existing projects and improve yield of its existing investment properties.

For the current financial year, the Group's main business segments are expected to perform satisfactorily. Wilmar’s performance will continue to contribute substantially to the overall profitability of the Group.

FINANCIAL HIGHLIGHTS OF YEAR2018

• PPB Group revenue rose 6% to RM4.53 billion in FY2018 mainly attributed to higher revenue generated from Grains and agribusiness; Environmental engineering and utilities; and Film exhibition and distribution.
• Group pre-tax profit of RM1.17 billion was 8% lower than FY2017 mainly due to lower profit contribution from our 18.5% associate, Wilmar International Limited (Wilmar) which contributed RM837 million for FY2018; profits from Grains and agribusiness and Consumer products segments were also lower.
• Profit for the FY2018 was RM1.1 billion and earnings per share was 75.57 sen.

DIVIDENDS

A final dividend of 20 sen per share for FY2018 will be tabled for approval by PPB shareholders at the Annual General Meeting to be held on 17 May 2019. The final dividend is payable on 10 June 2019 to shareholders whose names appear in the Record of Depositors on 24 May 2019.

Together with the interim dividend of 8 sen per share, the total dividend paid and payable for FY2018 would be 28 sen per share (FY2017 : 30 sen per share).

REVIEW OF OPERATIONS

The results of PPB’s business operations for 2018 are summarised as follows :-

• Revenue from the Grains and agribusiness segment was up by 5% to RM3.15 billion on the back of higher sales from all flour mills. Segment profit decreased by 6% attributable mainly to higher raw material costs.
• Consumer products segment revenue was lower by 5% at RM 641 million mainly due to lower sales of in-house products. Segment profit was lower at RM15 million due mainly to the absence of a one-time gain on sale of land and building of RM8.0 million recorded in 2017, higher raw material costs and plant maintenance cost at the bakery division.
• Revenue from the Film exhibition and distribution segment rose by 12% to RM538 million whilst segment profit went up by 17% to RM63 million in FY2018 mainly due to the strong performance of local Malay titles and contribution from cinemas opened in 2017
• The Environmental engineering and utilities segment recorded higher revenue of RM205 million for FY2018, up 57% compared with FY2017. Segment profit more than doubled to RM15 million mainly attributable to progressive profits recognised from on-going water treatment plant projects.
• Property segment revenue went up by 11% to RM53 million. Segment profit increased two-fold to RM12 million mainly attributable to higher income from project management fees and rental on completion of the Cheras LeisureMall extension.
• Combined revenue from Investments and Other Operations was 14% lower to RM120 million. The de-consolidation of Tefel Packaging Industries Co Ltd (Tefel) upon its disposal in June 2018 contributed to the lower segment revenue.  The combined segment profit increased 57% to RM15 million mainly attributable to higher investment income and deconsolidation of the loss-making Tefel.

PROSPECTS FOR 2019

The Malaysian economy recorded a sustained growth of 4.7% in 2018.  The economy is expected to continue to expand on a steady growth pace in 2019.  Private sector demand, with the support of continued income and employment growth, will remain the main driver.

The Grains and agribusiness segment is expected to remain competitive on the back of a volatile commodity market and it will continue to focus on volume growth and maintaining good quality standard of our products.  The performance of the Consumer products segment is expected to remain stable, supported by a widening product range and the introduction of new products into new markets.  The Film exhibition and distribution segment will continue to be driven by strong title releases, opening of new cinemas, introduction of new cinematic technology and facilities in selected locations.  The Environmental engineering and utility segment will focus on replenishing its order book while maintaining its focus on quality work and execution.  Amidst a challenging operating environment, the Property division will focus on completing the Megah Rise project in Petaling Jaya while striving to maintain and improve operational excellence in its existing mall and property management business.

While the Group's main business segments are expected to perform satisfactorily in financial year 2019, the overall Group financial results would depend substantially on Wilmar’s business performance.

FINANCIAL HIGHLIGHTS FOR 1H2018

• PPB Group revenue increased by 7% to RM2.23 billion in 1H2018. The increase was attributed to higher revenue from the Grains & Agribusiness and Environmental Engineering & Utilities
• Group pre-tax profit of RM546 million was 14% higher compared with RM480 million for 1H2017, mainly due to higher contribution from Wilmar International Limited, and higher profits from the Grains & Agribusiness and Environmental Engineering & Utilities
• Net profit for the period was higher at RM494 million, up 14% compared with RM432 million recorded in 1H2017. Earnings per share was at 34.72 sen, 14% higher compared with 1H2017 of 30.34 sen.

DIVIDEND

PPB has declared an interim single tier dividend of 8 sen per share for the financial year ending 31 December 2018 payable on 4 October 2018 to shareholders whose names appear in the Record of Depositors on 18 September 2018.

REVIEW OF OPERATIONS

The results of PPB’s main business operations for 1H2018 are summarised as follows :- 

• Grains & Agribusiness segment’s revenue for 1H2018 increased by 6% to RM1.54 billion mainly attributable to higher sales volume from all flour mills. Segment profit increased by 30% to RM73 million mainly due to lower raw material costs and improved product margins from feed division. 

• Consumer Products segment revenue for 1H2018 was RM333 million, down 3% from 1H2017 mainly due to lower sales of in-house products. Segment profit decreased by 46% to RM10 million for 1H2018 mainly due to the absence of a  one-time gain on sale of land and building amounting to RM8.0 million in the 1H2017 and weaker performance by the bakery division. 

• Film Exhibition & Distribution segment revenue was relatively stable at RM249 million. However, segment profit decreased by 28% at RM26 million mainly due to the losses from the film distribution business as movie titles released were weaker than last year. 

• The Environmental Engineering & Utilities segment revenue increased twofold to RM93 million mainly contributed by progressive billings for the construction of projects secured in the 2H2017. In line with the segment revenue, segment profit was higher at RM7.2 million for 1H2018. 

• The Property segment revenue increased by 8% to RM23 million primarily driven by higher project management fee income. Segment profit was at RM4.4 million as the one-time gain on the sale of vacant land was offset by higher operating cost.

CAPITAL COMMITMENTS

Total capital commitments as at 30 June 2018 amounted to RM581 million as follows :-

PROSPECTS FOR 2018

The flour markets in Malaysia, Indonesia and Vietnam and the feed market in Malaysia are expected to remain challenging amidst volatility in commodity prices.  Notwithstanding the market uncertainty, the Grains & Agribusiness segment is expected to perform satisfactorily with stable demand in the 2H2018, coupled by continuous efforts to strive for cost efficiency and focus on product quality.  The Consumer Products segment is expected to remain stable with more promotional activities and campaigns planned for the 2H2018.  The Film Exhibition & Distribution segment is expected to be supported by a strong movie line-up and contribution from newly opened cinemas in Malaysia.  In line with the construction progress of contracts in hand, the Environmental Engineering & Utilities segment is expected to perform better in the 2H2018.  With encouraging sales of the Megah Rise project in Petaling Jaya and improved tenancy from the extended and refurbished Cheras LeisureMall operations, the Property segment is expected to perform satisfactorily.

PPB Group’s main business segments are expected to perform satisfactorily in FY2018.  The overall Group financial results will continue to be supported by the business performance of Wilmar.

At an Extraordinary General Meeting of PPB Group Berhad (“PPB”) held at Shangri-La Hotel, Kuala Lumpur this morning, shareholders of PPB approved a proposed bonus issue of up to 237,099,976 new ordinary shares in PPB  (“Bonus Shares”) on the basis of one (1) bonus share for every five (5) existing PPB shares held (“Bonus Issue”). 

The Bonus Issue will be implemented by capitalising up to RM237,099,976 from PPB’s retained earnings.  The Bonus Issue will increase PPB’s share capital base and the number of PPB shares held by shareholders, and is expected to improve the marketability and trading liquidity of PPB shares on Bursa Securities.

The justification and effects of the Bonus Issue are disclosed on pages 3 and 4 of the Circular to Shareholders dated 22 June 2018.

The entitlement date for the Bonus Issue will be determined and announced later.

FINANCIAL HIGHLIGHTS OF YEAR 2017