PPB to return almost RM600m to investors
The group, which is controlled by Tan Sri Robert Kuok, will return RM592.8 million in special dividends to shareholders this year
Diversified PPB Group Bhd (4065), which sold its sugar business for RM1.3 billion, will return RM592.8 million in special dividends to shareholders this year and use the rest of the money to expand its flour and property business.
The group, which is controlled by Tan Sri Robert Kuok, paid out RM816.6 million in dividends in 2008. It has declared interim and final dividends of RM272.7 million for 2009.
PPB Group lost its dominance of the domestic sugar market when it sold its entire stake in two sugar units and land used for sugar cane cultivation to the Federal Land Development Authority (Felda) for RM1.3 billion in October last year.
PPB Group managing director Tan Gee Sooi said the sale of the sugar asset was completed on January 12 and gains of RM857 million were expected to be reflected in the group's first quarter results ending March 31 2010.
"Although we have disposed off our sugar business, it does not mean we can't continue with the business overseas. We just haven't decide on its brand name," Tan told reporters after an analyst briefing at its headquarters in Kuala Lumpur yesterday.
The group will now boost its flour business in Malaysia, Indonesia, China and Vietnam.
It will commission a factory with production capacity of 230 tonnes a day in Kota Kinabalu by September.
In addition to the Sabah factory, the group has flour plants in Prai (360 tonnes), Port Klang (1,000 tonnes), Pasir Gudang (810 tonnes) and Kuching (230 tonnes).
"We also plan to open more flour mills in Indonesia which is expected to contribute to revenue this year. We commissioned our first 1,000-tonne-a-day flour mill last October, with earnings of some RM12 million recently."
Tan said the company, which owns one flour factory in Vietnam, plans further expansion in that country given its population of 85 million, 100 per cent ownership and easy-to- apply-for operational licence.
It also plans to expand flour operations in China through its 18.4 per cent-owned associate, Wilmar International Ltd, which has flour factories in that country.
The Singapore stock exchange-listed Wilmar is the world's biggest oil palm trader.
PPB Group also plans to commission its first RM105 million bakery factory in Pulau Indah, Selangor, by the year-end, producing loaf bread and a variety of buns.
In addition, it will boost its property business, which makes up less than 2 per cent of revenue, by buying more land, mainly in northern Peninsular Malaysia.
"The group has not launched any new projects for the past two years. We plan to launch residential projects by year-end, or wait until the property market recovers."
PPB Group expects its grains trading, flour and feed milling divisions to do better this year.
In the fourth quarter ended December 31 2009, PPB Group made a lower net profit of RM353.5 million compared with RM361.3 million in the previous corresponding quarter.
Grains trading, flour and feed milling account for 53.5 per cent of revenue. Its cinema business makes up 9.5 per cent, followed by utilities at 4.8 per cent and property at 1.8 per cent.
Other businesses, such as chemicals trading and manufacturing, livestock farming, shipping, consumer products and packaging, make up another 30.2 per cent.
Diversified PPB Group Bhd (4065), which sold its sugar business for RM1.3 billion, will return RM592.8 million in special dividends to shareholders this year and use the rest of the money to expand its flour and property business.
The group, which is controlled by Tan Sri Robert Kuok, paid out RM816.6 million in dividends in 2008. It has declared interim and final dividends of RM272.7 million for 2009.PPB Group lost its dominance of the domestic sugar market when it sold its entire stake in two sugar units and land used for sugar cane cultivation to the Federal Land Development Authority (Felda) for RM1.3 billion in October last year.
PPB Group managing director Tan Gee Sooi said the sale of the sugar asset was completed on January 12 and gains of RM857 million were expected to be reflected in the group's first quarter results ending March 31 2010.
"Although we have disposed off our sugar business, it does not mean we can't continue with the business overseas. We just haven't decide on its brand name," Tan told reporters after an analyst briefing at its headquarters in Kuala Lumpur yesterday.
The group will now boost its flour business in Malaysia, Indonesia, China and Vietnam.
It will commission a factory with production capacity of 230 tonnes a day in Kota Kinabalu by September.
In addition to the Sabah factory, the group has flour plants in Prai (360 tonnes), Port Klang (1,000 tonnes), Pasir Gudang (810 tonnes) and Kuching (230 tonnes).
"We also plan to open more flour mills in Indonesia which is expected to contribute to revenue this year. We commissioned our first 1,000-tonne-a-day flour mill last October, with earnings of some RM12 million recently."
Tan said the company, which owns one flour factory in Vietnam, plans further expansion in that country given its population of 85 million, 100 per cent ownership and easy-to- apply-for operational licence.
It also plans to expand flour operations in China through its 18.4 per cent-owned associate, Wilmar International Ltd, which has flour factories in that country.
The Singapore stock exchange-listed Wilmar is the world's biggest oil palm trader.
PPB Group also plans to commission its first RM105 million bakery factory in Pulau Indah, Selangor, by the year-end, producing loaf bread and a variety of buns.
In addition, it will boost its property business, which makes up less than 2 per cent of revenue, by buying more land, mainly in northern Peninsular Malaysia.
"The group has not launched any new projects for the past two years. We plan to launch residential projects by year-end, or wait until the property market recovers."
PPB Group expects its grains trading, flour and feed milling divisions to do better this year.
In the fourth quarter ended December 31 2009, PPB Group made a lower net profit of RM353.5 million compared with RM361.3 million in the previous corresponding quarter.
Grains trading, flour and feed milling account for 53.5 per cent of revenue. Its cinema business makes up 9.5 per cent, followed by utilities at 4.8 per cent and property at 1.8 per cent.
Other businesses, such as chemicals trading and manufacturing, livestock farming, shipping, consumer products and packaging, make up another 30.2 per cent.
Comments
Post a Comment