PETALING JAYA: PPB Group Bhd’s net profit for its second quarter ended June 30, 2022 more than tripled to RM693.41 million compared with RM183.47 million in the corresponding quarter last year on positive contributions from all key segments.
Its revenue increased to 45.65% to RM1.57 billion from RM1.08 billion in the same quarter last year.
For the cumulative period, net profit increased 70.16% to RM996.57 million. Revenue rose 34.46% to RM2.96 billion to RM2.20 billion.
The group said grain commodity prices have stabilised to a level closer to the pre-Russia-Ukraine conflict as global supply concerns eased.
However, the flowthrough effect of high raw material prices on production costs, as well as high logistics costs, will remain, given the lag effect of procurement and production cycles, in addition to limitations in its price-in mechanism.
The grain and agribusiness segment will continue to preserve margins by improving product performance and enhancing operational efficiency.
PPB expects its consumer products segment, which mainly distributes basic necessities, to perform satisfactorily on the back of improving consumer sentiment.
Meanwhile, the film exhibition and distribution segment saw strong quarterly improvement due to the release of summer blockbuster titles. The scheduled movie line-up for the second half of 2022 is expected to contribute positively to the segment.
Management will remain cautious in spending during this recovery stage of the industry and continue to optimise resources.
The environmental engineering and utilities segment, meanwhile, will continue to focus on replenishing its order book and exploring new project opportunities.