PPB Group Bhd posted a 52.32% increase in net profit for the second quarter ended June 30, 2024 to RM308.92 million from RM202.81 million a year ago on higher contribution from Wilmar International Ltd.

KUALA LUMPUR (Aug 29): PPB Group Bhd's (KL:PPB) second quarter net profit rose 52.32% year-on-year to RM308.92 million from RM202.81 million, thanks to a higher contribution from Wilmar International Ltd.

Earnings per share for the quarter ended June 30, 2024 (2QFY2024) increased to 21.72 sen from 14.26 sen, according to the group's stock exchange filing.

PPB said Wilmar, in which the group holds an 18.8% stake, contributed RM244 million to its pre-tax profit during the quarter, a surge of 75.54% from RM139 million in 2QFY2023.

"Wilmar's performance will continue to contribute substantially to the overall profitability of the group," said PBB.

Revenue for the quarter was down 10.93% to RM1.32 billion from RM1.48 billion in 2QFY2023 following the absence of earnings contribution from its divested Indonesian flour operation.

PPB has declared an interim dividend of 12 sen per share for the quarter, payable on Sept 26.

Looking ahead, PPB said it remains cautious on the potential adverse weather conditions in key grains growing regions which could affect global prices.

“However, our strong technical expertise in product formulation and quality assurance continues to drive sales growth and enhance margins,” the group said.

PPB expects the earnings from its consumer products segment to remain satisfactory for the rest of the year, despite the rising business cost, as it will improve its marketing efficiency and expand its product range and market presence.

For the first half of FY2024, PPB posted a net profit of RM646.09 million, up 11.33% year-on-year from RM580.35 million, thanks to better performance from its grains and agribusiness segment which partially offset the lower contribution from the film exhibition and distribution segment.

Revenue for the period, however, fell by 13.13% to RM2.61 billion from RM3 billion, due to absence of gain from the divested Indonesian flour operation.

Shares in PPB fell 16 sen or 1.1% to close at RM14.34 on Thursday, valuing the group at RM20.4 billion.