KUALA LUMPUR (Feb 28): PPB Group Bhd’s (KL:PPB) net profit fell 17.3% to RM365.20 million in the fourth quarter ended Dec 31, 2024 (4QFY2024), from RM441.40 million a year ago, dragged by lower contributions from its 18.8%-owned associate Wilmar International Ltd, despite a strong performance by the group's core business segments.

Wilmar’s profit contribution fell by more than half to RM277 million from RM572 million in 4QFY2023, while the group's core business segments turned into a pre-tax profit of RM145 million from a pre-tax loss of RM130 million previously.

Quarterly revenue for PPB rose 13.3% year-on-year to RM1.43 billion from RM1.26 billion, as all its segments except for property registered higher revenue.

The group declared a final dividend of 30 sen per share, bringing its total dividends for the year to 42 sen, matching the previous year.

For the full year, PPB’s net profit fell 12.5% to RM1.22 billion from RM1.39 billion in FY2023, as total revenue fell 5.9% to RM5.39 billion from RM5.72 billion.

Excluding one-off items, the grains and agribusiness segment recorded a 29% rise in profit to RM310 million in FY2024, mainly attributable to contributions from the flour and feed sub-segments.

The consumer products segment experienced a 75% decrease in profit, falling to RM6.5 million. This decline was primarily due to higher operating costs and trade promotion expenses.

The film exhibition and distribution division turned into a profit of RM3.7 million from a loss of RM120 million, attributable to lower cinema operating costs and an absence of impairments.

The property division's profit decreased by 34% to RM12 million, primarily due to the absence of revenue and profit contributions from the sale of completed units of the Megah Rise residential project.

On prospects, despite challenges in the global grain market, PPB said it remains confident in in its ability to manage the complexities, leveraging its expertise in grain sourcing and technical know-how. 

The group anticipates satisfactory results and continued recovery for the consumer products and film exhibition segments, supported by its strong market presence and operational efficiency.

For the property segment, a township development was launched in Kedah, with 125 freehold houses. Enhancing mall performance is a key priority for 2025, the group added.

Shares of PPB fell 22 sen or 2% to RM10.74 on Friday, giving the group a market capitalisation of RM15.28 billion.