Agribusiness, Film Segments To Drive PPB Group's 2H2016 Performance

KUALA LUMPUR, Aug 30 (Bernama) -- PPB Group Bhd is upbeat of its performance in the second half of 2016, driven by strong contribution from its grains and agribusiness segment, as well as, film exhibition and distribution business. Managing Director Lim Soon Huat expected the grains and agribusiness segment to be supported by growing consumption in countries like Indonesia and Vietnam coupled with its flour mill investment in China. "We will continue to build our distribution channel and logistics capabilities in these countries. "The film segment, on the other hand, will benefit from new cinema openings and strong content titles in the second half of the year," he told a press and analyst briefing on PPB Group's financial performance for the second quarter ended June 30, 2016. PPB Group's performance for the second quarter this year was negatively impacted by its 18.6 per cent stake in Wilmar International, which contributed up to 70 per cent of the group's profits, following the latter's losses. However, Lim was confident that this was a one-off situation and PPB Group was not deterred by Wilmar's short-term setback. On capital expenditure (Capex), the group allocated US$108.43 million (RM440 million) for the next two to three years to strengthen its operations whereby US$43.13 million (RM175 million) would be channeled into the grains and agribusiness segment and US$46.08 million (RM187 million) for the film exhibition and distribution business. (US$1 = RM4.05) Its film exhibition and distribution arm, Golden Screen Cinemas Sdn Bhd Chief Executive, Koh Mei Lee said it planned another eight cinema projects for the next three years. "In 2017, we plan to open five cinemas with 57 screens, one cinema with eight screens in 2018 and two cinemas with 24 screens in 2019," she added. When asked wether it expected more oil and flour subsidy removal in the government's Budget 2017 announcement, PPB Group's 80 per cent-owned unit, FFM Bhd Managing Director Ong Hung Hock said: "We have to move into a situation of free market because with subsidy, you make a mockery out of branding. "It is hard for companies to grow in a situation with controlled pricing but we understand that this situation is complex and it is sensitive," he added. -- BERNAMA