Sunday 21 Jul 2024
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KUALA LUMPUR (Aug 30): Diversified conglomerate PPB Group Bhd announced on Tuesday (Aug 30) that it has set aside a total of RM875 million for capital and other commitments for the next five years, mainly focusing on four of its key business segments.

PPB Group senior manager of corporate affairs Susan Chia said that a large portion of it, amounting to RM412 million, has been allocated for the group’s grain and agribusiness segment.

“The RM412 million will be for investments in China flour mills as well as [for] silo and maize facility in Pulau Indah [in Selangor],” she said during PPB Group’s presentation in a media and analyst briefing on Tuesday following the release of its first half of 2022 (1HFY22) financial results.

Another RM379 million will be administered to its film exhibition and distribution segment for new cinemas in Malaysia as well as for upgrading existing cinemas, Chia said.

She added that PPB Group is setting aside RM75 million for its consumer products and others segment, which will be used to purchase equipment and office renovation, and also for private equity investment.

Meanwhile, the remaining RM9 million is intended for its property segment, principally for renovation of investment properties, according to Chia.

For 1HFY22, PPB Group’s revenue rose 34% to RM2.96 billion from RM2.2 billion a year earlier. Chia said its grain and agribusiness segment contributed 74% or RM2.17 billion of 1HFY22 revenue.  

Meanwhile, 1HFY22 net profit jumped to RM996.57 million from RM585.65 million a year earlier.

Chia said its consumer products segment was the second-highest contributor to the group's 1HFY22 revenue, with a contribution of 13% or RM375 million, followed by the film exhibition and distribution segment (7% or RM221 million).

The property segment supplied 3% or RM82 million to 1HFY22 revenue, the environmental engineering and utilities segment 2% or RM68 million, and the other operations segment gave 1% or RM43 million, Chia said.

She highlighted that the segment that contributed most to the group's 1HFY22 profit before tax of RM991 million — up 68% from RM591 million a year ago — was the other operations segment, from its 18.7% investment in Singapore-listed Wilmar International Ltd.

PPB Group managing director Lim Soon Huat, who later gave his closing remarks, stated that he believes the group’s outlook for 2HFY22 will be more optimistic than 1HFY22.

“We know that the operating environment will not be as rosy, but our core businesses are back on the right track. If you look at the post-pandemic [period], we are seeing more and more consumer spending, it is positive.

“What we are looking forward to now is how we can deal with the rising costs of doing business, and we have measures to mitigate some of the cost escalation we are facing in our businesses,” he said.

On Tuesday’s afternoon break, PPB Group’s share price was up 26 sen or 1.53% to RM17.26, valuing the group at RM24.55 billion.

Edited BySurin Murugiah
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