KUALA LUMPUR: PPB Group Bhd saw its net profit in the fourth quarter ended Dec 31, 2021 (4Q21) jump 30.4% to RM502.55mil from RM385.39mil a year ago.

       The higher profit was mainly attributable to higher contribution from Wilmar International Limited by 23% to RM476mil and lower losses recorded at the film exhibition and distribution segment at RM13mil, partially offset by losses recorded at the grains and agribusiness segment at RM13.7mil.

       Its revenue for the quarter was 25% higher at RM1.42bil against RM1.13bil a year ago due to higher revenue recorded at the grains and agribusiness and film exhibition and distribution segments.

       PPB has proposed a proposed final dividend of 25 sen per share for the financial year ended Dec 31, 2021 (FY21) payable on June 1, 2022, subject to the approval of shareholders at the 53rd annual general meeting scheduled to be held May 12.

       Together with the interim dividend of 10 sen per share paid on Sept 28, 2021, total dividends paid and payable in FY21 amounted to 35 sen per share.

       PPB’s net profit rose 13.6% to RM1.49bil in FY21 against RM1.31bil a year ago while revenue increased by 16% to RM4.86bil from RM4.19bil previously.

       PPB said the performance of the grains and agribusiness segment was adversely affected by the unprecedented high raw materials costs caused by global supply shocks and supply chain disruptions.

       “Going into 2022, we expect margin pressures to remain, as volatile commodity market prices and elevated freight costs persist. We continue to optimise operational efficiencies through our group’s extensive grain procurement experience and technical competency to mitigate the impact of rising raw materials and operating costs,” it said.

       PPB said the consumer products segment was facing higher production costs following the increase in commodity prices and logistics costs.

       Notwithstanding the rising costs, PPB said this segment is expected to perform satisfactorily as it continues to expand its market reach through the food services channel and e-commerce platform.

       The film exhibition and distribution segment had a strong close in the fourth quarter. The strong movie titles lined up and the relaxation of Covid-19 SOP contributed to the improvement in cinema admissions.

       “Improved performance from the expanded cinema circuit following the completion of the acquisition of the former MBO assets in September 2021 is expected to contribute positively to the film exhibition and distribution segment and will accelerate the recovery of this segment.

       “Management remains cautious in spending during the transition to normalcy and will continue to explore revenue diversification in its efforts to build operation resiliency,” PPB said.