PPB Group Bhd recorded a lower pre-tax profit of RM283.495 million in the first quarter ended March 31, 2011, compared
to RM302.588 million in the same period last year.

Owned by business magnate, Tan Sri Robert Kuok, the company's revenue increased to RM580 million, up 15 per cent, from RM503.633 million previously.

In a filing to Bursa Malaysia, the company said the increase was due mainly to higher flour revenue and increased grains trading volume recorded by the grains trading, flour and feed milling divisions.

The environmental engineering, chemicals trading and manufacturing division as well as the livestock farming division also contributed higher revenue for the quarter.

PPB said volatile commodity prices, rising fuel costs coupled with fluctuating currency exchange rates were the main challenging factors.

These are expected to continue to affect the group's operating results for the present financial year, said the group which, apart from its core grains trading, flour and animal feed milling, also owns Golden Screen Cinemas Sdn Bhd.

Notwithstanding the above, it said the outlook for consumer demand in Malaysia and the Asian region remained encouraging and the group was optimistic of satisfactory performance for the year. -- Bernama