Wilmar International’s Associate Company PPB Group Faces Challenges Amidst Strong Core Business Performance
In a recent update, Wilmar International Ltd’s associate company PPB Group reported a decline in net profit for the second quarter, largely due to a weaker contribution from Wilmar. Despite this setback, PPB Group’s core business segments demonstrated resilience, delivering a significant increase in pre-tax profit.
The decline in net profit was attributed to a 19% decrease in Wilmar’s profit contribution, which fell to RM1.97 billion in the second quarter. This represents a notable drop from RM2.44 billion in the same period last year. However, it’s worth noting that PPB Group’s core business segments, which include its retail and property arms, performed exceptionally well. Combined pre-tax profit from these segments rose by a substantial 30% year-on-year.
While the decline in Wilmar’s profit contribution had a significant impact on PPB Group’s overall performance, the company’s revenue still managed to edge up 3.1% to RM1.359 billion from RM1.319 billion in the previous year. This modest increase is a testament to the company’s ability to adapt and grow despite the challenges it faced.
In a positive development, PPB Group maintained its dividend payout of 12 sen per share, demonstrating its commitment to returning value to shareholders. This decision reflects the company’s confidence in its long-term prospects and its ability to navigate the current market conditions.
Key Highlights:
- PPB Group’s net profit declined 9.4% in the second quarter due to a 19% decrease in Wilmar’s profit contribution
- Combined pre-tax profit from core business segments rose 30% year-on-year
- Revenue edged up 3.1% to RM1.359 billion from RM1.319 billion in the previous year
- PPB Group maintained its dividend payout of 12 sen per share
