KUALA LUMPUR (May 26): PPB Group Bhd’s (KL:PPB) net profit for the first quarter ended March 31, 2026 (1QFY2026), fell 37.73%, dragged by weaker contributions from its 18.8%-owned associate Wilmar International Ltd and softer performance across its core business segments.
Net profit declined to RM234.02 million from RM375.83 million a year earlier, on revenue that slipped 4.88% to RM1.285 billion from RM1.351 billion.
The earnings contraction was largely due to a 31% drop in contribution from Wilmar to RM196 million from RM283 million previously, alongside a 53% fall in core segment profits to RM59 million from RM127 million, according to its bourse filing.
The grains and agribusiness segment recorded weaker performance during the quarter due to lower sales in its flour and feed sub-segments, while its film exhibition and distribution business recorded a higher loss due to lower cinema admissions, weaker box office collections and concession sales, and higher operating costs.
Its consumer products segment slid into the red during the quarter, weighed down by lower sales volumes for certain staple food items and higher trade promotion expenses. This was despite a 17% year-on-year increase in revenue to RM247 million, supported by contributions from its newly acquired Min Tien Group and Eggtech Manufacturing Sdn Bhd.
No dividend was declared for the quarter.
Prior to this latest quarterly results, PPB logged net losses of RM199.6 million in 3QFY2025 and RM3.2 billion in 4QFY2025.
Looking ahead, PPB said it remains cautious amid heightened geopolitical uncertainties in the Middle East, while continuing to closely monitor developments and manage cost pressures across its value chain.
For its grains and agribusiness segment, operated by 80%-owned FFM Bhd, the group said it will strengthen procurement strategies through diversified sourcing to mitigate supply disruptions and price volatility caused by adverse weather in key producing regions.
The consumer products segment will continue expanding its product range and introducing new offerings to meet evolving consumer demand, it said, while leveraging its distribution network and logistics capabilities to offset margin pressures and higher costs.
As for the film exhibition and distribution segment, the group expects it to improve progressively, supported by a stronger pipeline of Hollywood and local releases, alongside initiatives to enhance cinema offerings, optimise screening strategies and grow non-ticket revenue streams.
For its property segment, PPB said asset enhancement and upgrading initiatives will remain a key focus to support occupancy rates, boost footfall and improve overall shopper experience.
“Wilmar's performance will continue to contribute substantially to the overall profitability of the group,” PPB added.
PPB shares closed unchanged at RM10.02 on Tuesday, giving the diversified group a market capitalisation of RM14.25 billion. The stock has dropped near 6% year to date.