KUALA LUMPUR (Aug 25): PPB Group Bhd's net profit for the second quarter ended June 30, 2022 (2QFY22) spiked 277.9% to RM693.4 million from RM183.5 million a year earlier, helped by a 67% rise to RM992 million in contribution by its 18.5%-owned Singapore-listed Wilmar International Ltd.

Earnings per share for 2QFY22 leapt to 48.7 sen from 12.9 sen, according to the group's stock exchange filing.

Quarterly revenue jumped 45.6% to RM1.58 billion from RM1.08 billion on positive contributions from all key segments.

The group declared an interim dividend of 12 sen per share, to be payable on Sept 28.

PPB's grains and agribusiness segment saw a 39% rise in quarterly revenue to RM1.2 billion, attributable to hedging gains on derivative instruments as grain prices stabilised.

"Grain commodity prices have now stabilised to a level closer to the pre-Russian-Ukraine conflict as global supply concerns eased.

"However, the flow-through effect of high raw material prices on production costs as well as high logistics cost will remain, given the lag effect of procurement and production cycles, in addition to limitations in our price-in mechanism," the group added.

PPB said the full reopening of cinemas, the opening of the newly acquired former MBO cinemas, higher admissions as well as a six-fold increase in box office collections contributed to revenue of RM157 million for its film exhibition and distribution segment, compared with RM19 million in 2QFY21.

Its property segment, meanwhile, saw revenue double to RM47 million from RM23 million on new sales and progressive profit recognition of the Megah Rise development project, as well as improvement in overall mall business performance.

Revenue for its consumer product segment was higher at RM194 million compared with RM164 million in 2QFY21. Profit for the segment also improved due to higher sales of bakery and other fast-moving consumer products.

For the cumulative six months ended June 30, 2022, PPB's net profit jumped 70% to RM996.57 million from RM585.65 million a year earlier, as revenue increased 34% to RM2.96 billion from RM2.2 billion.

On prospects, PPB expects its consumer products segment, which mainly distributes basic necessities, to perform satisfactorily on the back of improving consumer sentiment as the country transitions into endemicity.

"The environmental engineering and utilities segment will continue to focus on replenishing its order book and exploring new project opportunities. The Megah Rise development project is on schedule to be completed by the end of the third quarter. Coupled with the increased footfall in our malls, performance of the property segment is expected to be satisfactory," added the group.

PPB's shares closed 78 sen or 4.88% higher at RM16.78 on Thursday (Aug 25), giving a market capitalisation of RM23.9 billion.