PPB Group's 2Q net profit more than triples, pays 8 sen dividend

-A +A

KUALA LUMPUR (Aug 29): PPB Group Bhd, which is controlled by tycoon Robert Kuok, saw its net profit more than triple to RM304.47 million in the second quarter ended June 30, 2018 (2QFY18) from RM93.2 million a year ago, on higher profit contribution from its 18.5%-owned associate Wilmar International Ltd.

This resulted in a higher earnings per share of 21.4 sen for 2QFY18 compared with 6.55 sen for 2QFY17.

Quarterly revenue grew 2.8% to RM1.08 billion in 2QFY18 from RM1.05 billion in 2QFY17, as revenue for its environmental engineering and film exhibition and distribution segments increased.

The group also declared an interim dividend of 8 sen per share for the financial year ending Dec 31, 2018 (FY18), payable on Oct 4.

For the cumulative six months (1HFY18), PPB’s net profit grew 14.5% to RM493.99 million from RM431.63 million, while revenue rose 6.9% to RM2.23 billion from RM2.08 billion.

On prospects, PPB said its grains and agribusiness segment is expected to perform satisfactorily with stable demand in 2HFY18, coupled by continuous efforts to strive for cost efficiency and focus on product quality.

Its consumer products segment is expected to remain stable with more promotional activities and campaigns planned for 2HFY18, while its film exhibition and distribution segment is expected to be supported by a strong movie line-up and contribution from newly opened cinemas in Malaysia.

In line with the construction progress of contracts in hand, PPB said its environmental engineering and utilities segment is expected to perform better in 2HFY18.

With the encouraging sales of the Megah Rise project in Petaling Jaya and improved tenancy from the extended and refurbished Cheras LeisureMall operations, the group’s property segment is expected to perform satisfactorily in 2HFY18.

PPB shares closed up 8 sen or 0.5% at RM16.82 today, for a market capitalisation of RM23.9 billion.