Stronger Wilmar earnings lift PPB’s 3Q net profit

KUALA LUMPUR (Nov 22): PPB Group Bhd posted a net profit of nearly 10% more to RM394.18 million for the third quarter ended Sept 30, from RM359.77 million in the same period last year, boosted by stronger contribution from Wilmar International Ltd, as well as its grains and agribusiness and environmental engineering and utilities segments.

Earnings per share rose to 27.71 sen from 25.29 sen, while revenue was up 5.05% to RM1.19 billion from RM1.14 billion, according to its filing with the bourse.

Under the grains and agribusiness segment, profit increased 68% to RM54 million from RM32 million on the back of higher flour prices.

Its environmental engineering and utilities segment posted a higher profit of RM8 million for the quarter from RM1 million mainly due to progressive recognition of profit from new projects secured.

However for the nine-month period, net profit dipped 5.99% to RM802.61 million or 56.42 sen a share, from RM853.76 million or 60.01 sen a share last year, even though revenue increased by 4.13% to RM3.5 billion from RM3.36 billion.

PPB attributed the lower earnings for the nine months to Wilmar’s smaller contribution of RM652 million for the period compared with RM682 million last year.

On prospects, PPB said the Group's main business segments are expected to perform satisfactorily and that Wilmar’s performance will continue to contribute substantially to the group’s overall profitability.

Shares of PPB closed four sen or 0.22% higher at RM18.24 yesterday, valuing the company at RM25.95 billion.

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