Press Releases

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.