Update PPB 2Q earnings fall 7% to RM166m, declares 7 sen dividend

by **Cals** Wed 27 Aug 2014, 23:21

Update PPB 2Q earnings fall 7% to RM166m, declares 7 sen dividend

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Wednesday, 27 August 2014 18:53

KUALA LUMPUR (Aug 27): PPB Group Bhd’s net profit fell 7% to RM166.38 million for its second financial quarter ended June 30, 2014 (2QFY14) from RM179.48 million a year ago, due mainly to lower profit contribution from its associate Wilmar International Ltd.

Revenue for 2QFY14 rose 17% to RM956.64 million from RM818.49 million, mainly contributed by its flour and feed milling, and distribution of consumer products segments.

The group also declared an interim dividend of 7 sen for the financial year ending Dec 31, 2014 (FY14), payable on Sept 26.

For the six months period, PPB Group saw its net profit drop 25% to RM310.65 million from RM415.82 million a year ago, even though revenue rose 16% to RM1.84 billion from RM1.58 billion.

Nevertheless, PPB Group expects its core businesses to perform well for the remainder of FY14, while its overall consolidated financial results will continue to be contingent on Wilmar, which is expecting better performance in the second half of this year.

“The group's flour and feed milling, consumer products, film exhibition and bakery businesses are anticipated to benefit from robust domestic consumption for the rest of the year,” PPB Group said in a filing with the exchange today.

“Several environmental engineering contracts which are scheduled to progress into the construction stage, coupled with the sales of bungalow units in Seberang Prai and Cheras will contribute positively to group results,” said the group.