Tuesday, August 23, 2011

PPB 2Q net profit dips 13% to 276.43m, declares 10c interim dividend

KUALA LUMPUR: PPB GROUP BHD [] net profit for the second quarter ended June 30, 2011 slipped 13% to RM276.43 million from RM317.75 million a year earlier, due mainly to a one-off gain from the sale of investment property in 2010.

In said on Tuesday, Aug 23 that revenue for the quarter rose to RM676.24 million from RM581.09 million in 2010. Earnings per share was 22.43 sen compared to 26.80 sen.

PPB declared an interim single tier dividend of 10 sen per share for the financial year ending Dec 31, 2011 payable on Sept 28.

For the six months ended June 30, PPB's net profit slumped to RM541.66 million from RM1.44 billion in 2010, despite its revenue rising to RM1.26 billion from RM1.08 billion.

Reviewing its performance, PPB said the increase in its revenue 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, film exhibition and distribution, chemicals trading and manufacturing divisions as well as livestock farming also contributed higher revenue for the period under review, it said.

PPB said the grains trading, flour and feed milling division contributed higher profits due to higher sales whilst livestock farming registered a profit compared with a loss previously.

It also said there was a one-off gain of RM22.3 million from sale of investment property in 2010, and a lower profit was registered in the investments in equities due to a fair value loss in the current period.

Meanwhile, Wilmar International Limited, an associate of the group, contributed RM432 million for the period under review which was marginally lower than RM452 million last year, it said.

On its prospects, PPB said volatile commodity prices, rising fuel costs coupled with fluctuating currency exchange rates were the main challenging factors which would continue to affect the group's operating results for the present financial year 2011.

'Notwithstanding the above, the outlook for consumer demand in Malaysia and the Asian region remains encouraging and the group is optimistic that the performance for the year 2011 will be satisfactory,' it said.


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