KUALA LUMPUR (May 17): PPB Group Bhd said today it should be able to deliver satisfactory results in the current financial year as it continues to bank on 18.5%-owned Wilmar International Ltd as a significant profit contributor while continuing to grow PPB's core businesses.
PPB's core businesses include flour milling, consumer products distribution, cinema operations besides environmental engineering and utilities. Singapore-listed Wilmar's portfolio includes oil palm plantations and sugar production.
PPB chairman Tan Sri Oh Siew Nam and managing director Lim Soon Huat told reporters after PPB's annual general meeting (AGM) here today that group should be able to deliver satisfactory results in financial year ending Dec 31, 2019 (FY19) despite escalating China-US trade tension.
Oh said: "I think this year will be more volatile with all these trade war going on and nobody knows what is going to happen [next]. I'm sure this trade war will affect everybody, a bit here and there."
"I am sure we will still be doing quite satisfactorily," he said.
On Wilmar, Lim said its diversified portfolio of businesses has essentially allowed the company to deal with challenges and uncertainties as a result of global trade problems.
"We believe that Wilmar will continue to do well, given its integrated business model as well as a well-diversified portfolio," he said.
Lim said PPB will continue to focus on growing its core businesses in flour milling, consumer products distribution, cinema operations, besides environmental engineering and utilities.
"The capital expenditure that we have set aside for the next three to four years, which amounts to about RM800 million, will largely go into expansions at our flour milling as well as cinema businesses," he said.
PPB held its AGM today ahead of its 1QFY19 results announcement. Yesterday, PPB told Bursa Malaysia it will announce its 1QFY19 financial results after trading hours on May 29, 2019.