KUALA LUMPUR (Aug 26): PPB Group Bhd's (KL:PPB) second-quarter net profit jumped 20.82%, driven by higher contributions from its 18.8%-owned associate Wilmar International Ltd, and an improved performance of the core grains and agribusiness segment.

Net profit for the three months ended June 30, 2026 (2QFY2026) rose to RM338.09 million from RM279.84 million a year earlier, a bourse filing showed, even as revenue slipped 3.04% to RM1.32 billion from RM1.36 billion.

The drop in top line was due to weaker sales across the flour, feed and live-stock sub-segments, and lower net box office collection and concession income at the film exhibition and distribution segment.

An interim dividend of 13 sen per share — up from 12 sen a year earlier — was declared, payable on Sept 25.  

During the quarter under review, Wilmar contributed RM255.86 million to the group, up 30% compared with RM197 million recorded in 2QFY2025, while the grains and agribusiness segment saw profit surge nearly 40% to RM92.72 million — largely driven by improved flour margins despite softer sales volume.

The consumer products segment, however, slipped into a loss RM97,000 from a profit of RM2.2 million, despite higher revenue, as it sold less of certain staple food products, coupled with higher trade promotion expenses.

The film exhibition and distribution segment's profit dropped 42% to RM21.93 million as revenue fell 12% to RM185.23 million, no thanks to lower net box office collection and concession income, as well as higher operating costs.

The property segment's profit also fell 21% to RM1.63 million from RM2.1 million despite higher revenue, due mainly to lower contributions from associate companies.

For the first half ended June 30, 2026 (1HFY2026), PPB's net profit fell 12.74% to RM572.11 million from RM655.67 million for 1HFY2025, as revenue dipped 3.95% to RM2.6 billion from RM2.71 billion.

The weaker first-half performance was mainly due to a 6% drop in Wilmar's cumulative contribution to RM451.76 million from RM481.09 million due to foreign exchange translation losses resulting from a stronger ringgit, and a 23% decline in contributions from PPB's core business segments to RM188 million from RM244 million.

On prospects, PPB said its grains and agribusiness segment continues to operate in a challenging environment due to the unresolved Middle East conflicts and their impact on global trade. Weather-related disruptions and ongoing price volatility in logistics, energy and other input costs are also expected to remain key cost pressures.

While the stronger ringgit against the US dollar has provided “some relief” to grain importers, PPB expects margin pressure to persist.

The group plans to continue expanding its product portfolio and introduce new offerings under its consumer products segment, while it remains cautiously optimistic on its film exhibition and distribution business, supported by the summer blockbuster season and a stronger pipeline of Hollywood and local films in the second half of the year.

PPB shares dipped two sen or 0.19% to close at RM10.26 on Wednesday, giving the diversified group a market capitalisation of RM14.6 billion. The stock has fallen nearly 16% from its recent peak of RM12.20 in April.