PPB reports better fourth quarter results, thanks to Wilmar

PETALING JAYA: PPB Group Bhd’s net profit for the fourth quarter ended Dec 31, 2016 (Q4FY16) rose 45% to RM496.03 million from RM341.02 million a year ago, mainly due to higher profit contribution from associate Wilmar International Ltd, which cushioned lower results recorded by most of the group’s segments.

Its revenue of RM1.02 billion in Q4FY16 was 6% lower than the RM1.09 billion in Q4FY15 negated by reduced revenues from the other segments.
For FY16, PPB’s net profit fell marginally by 0.6% to RM1.04 billion from RM1.05 billion a year ago.

Revenue, however increased by 3% to RM4.19 billion from RM4.05 billion in FY15 mainly attributed to higher revenue generated from the grains and agribusiness, consumer products, film exhibition and distribution.

PPB said the operating environment in 2017 is expected to be challenging for the group’s core businesses. Intense competition will continue in the flour markets in Malaysia, Indonesia and Vietnam, while the feed market in Malaysia will be uncertain with the rapidly evolving industry landscape.

“However, the group is confident of maintaining its strong position in the grains and agribusiness segment with its industry knowledge and experience.

“While the weaker ringgit and economic uncertainty are expected to weigh on consumer confidence and affect spending, the group expects the performance of the consumer products segment to continue to be satisfactory. The film exhibition and distribution segment will be supported by the opening of three new cinemas and strong line-up of movies in 2017,” it added.

PPB said the environmental engineering and utilities segment is well-positioned to participate in government projects to upgrade and renew the water and sewage infrastructure.

The property segment is planning to launch a new development project in a strategic location.

While the group’s main business segments are expected to perform satisfactorily, PPB said, Wilmar’s performance will continue to contribute substantially to the group’s overall financial results for 2017.