KUALA LUMPUR (Feb 28): Diversified conglomerate PPB Group Bhd recorded a steep drop in earnings for its financial year ended Dec 31, 2023 (FY2023) mainly on lower contribution from Wilmar International Ltd, which was 38% lower at RM1.3 billion against RM2.1 billion in FY2022.

PPB's full-year net profit stood at RM1.39 billion, falling by 36.53% year-on-year (y-o-y) from RM2.2 billion, while revenue also dropped 7% to RM5.72 billion from RM6.15 billion a year ago during the same period, according to its filing to the bourse on Wednesday.

In the fourth quarter ended Dec 31, 2023 (4QFY2023), PPB’s net profit rose 6.23% y-o-y to RM441.4 million from RM415.5 million, despite a 21.62% drop in revenue to RM1.26 billion from RM1.61 billion on lower revenue recorded at its grain and agribusiness, consumer products as well as film exhibition and distribution segments.

The better earnings in 4QFY2023 were boosted by higher share of results of associates, joint ventures, as well as lower finance costs and tax expense.

Earnings per share for the quarter amounted to 31.03 sen versus 29.21 sen for 4QFY2022.

The group declared a final dividend of 30 sen per share, payable on June 7, 2024, taking the total declared for FY2023 to 42 sen, from 40 sen in FY2022.  

PPB's share price closed up two sen or 0.1% to RM15.32, giving the group a market capitalisation of RM21.79 billion.

Over the past year, the stock has fallen about 13%.