30/11/2023 (Malaysia) - PPB Group Bhd has reported a significant drop in its net profit for the third quarter ending September 30, 2023. The conglomerate's profits fell to RM372.55 million from RM784.75 million recorded during the same quarter last year. This decrease marks a notable shift in the company's financial performance.
Revenue for the reviewed period also decreased, registering RM1.46 billion compared to RM1.64 billion in the previous year's corresponding period. For the nine-month period of the fiscal year 2023, PPB Group's net profit declined to RM952.91 million from RM1.78 billion.
A major factor contributing to the decline in profits was the reduced contribution from Wilmar International Ltd. The company's contribution in the third quarter of fiscal 2023 was 63 percent lower at RM268 million compared to RM721 million in the same quarter of the previous year. Over the nine-month period, the contribution was 57 percent lower at RM728 million, down from RM1.71 billion in the previous year.
In a statement to Bursa Malaysia, PPB Group commented on the profitability downturn, attributing it to the diminished performance of Wilmar International.
The company also discussed the prospects of its grain and agriculture business, noting that the segment's performance remained solid in the third quarter of 2023, backed by stable grain commodity markets. However, PPB Group expressed concerns about the increasing global geopolitical tensions, which could lead to further volatility in global grain prices. Additionally, the prolonged weakness of the Malaysian ringgit might increase raw material costs and pressure profit margins.