KUALA LUMPUR (Aug 27): PPB Group Bhd’s net profit more than doubled in the second quarter ended June 30, 2020 (2QFY20) to RM332.73 million, from RM159.98 million a year earlier, boosted by performance of its 18% associate Wilmar International Ltd and its agribusiness segment.
Wilmar’s contribution more than offset the group’s weaker core profit, resulting in earnings per share rising to 23.39 sen, from 11.25 sen in 2QFY19.
PPB declared an interim dividend of eight sen per share — unchanged from last year — to be paid on Sept 29.
On the weaker core profit, PPB attributed it to losses in its cinema business and property business, where footfall and malls-related rental income were impacted by the Movement Control Order.
Overall, quarterly revenue fell 17.3% to RM953.34 million, from RM1.15 billion in 2QFY19.
The stronger performance in 2QFY20 allowed PPB to post a 27.32% rise in net profit for the six-month period ended June 30 (6MFY20) to RM520 million or 36.55 sen per share, from RM408.42 million or 28.71 sen per share a year earlier.
Half-year revenue fell 12.47% to RM2.02 billion, from RM2.31 billion.
On prospects, PPB sees its cinema and property businesses remaining as its biggest drag, while its other main business segments are expected to perform satisfactorily.
“Wilmar’s performance will continue to contribute substantially to the overall profitability of the group,” it said.
PPB’s share price fell 18 sen or 0.93% to close at RM19.26, valuing the group at RM27.4 billion.
Edited by S Kanagaraju