KUALA LUMPUR: PPB Group Bhd, a Malaysian diversified conglomerate, is allocating a sum of RM831 million for capital expenditure for the next four years for its expansion plans locally and internationally across all segments.
Managing director Lim Soon Huat said expansion plans include the addition of nine new cinemas locally and one in Cambodia for the period, as well as upgrading existing cinemas under the film exhibition and distribution segment for RM373 million.
“The group will also allocate RM401 million for the grains and agribusiness segment, which will be used for investment in China flour mills and the construction of a 500 tonnes per day flour mill in Vietnam as well as RM3 million for the property segment to continue upgrading our existing malls.
“For the consumer products segment, we are allocating RM16 million for the construction of a new production facility and purchase of plant, machinery and intangible assets, RM5 million for environmental engineering and utilities to purchase equipment and office renovation, as well as RM33 million for other segments to purchase plant and machinery,“ he told a media briefing today on the company’s outlook for this year.
Under the environmental engineering and utilities segment, he said the group has secured two water projects in Sarawak worth a total of RM88 million, and is tendering for projects in Peninsular Malaysia and Sarawak with a total value of RM350 million.
Lim said that all the tenders will be announced in stages with the latest expected to be announced in May this year.
“Going forward, the grains and agribusiness segment is expected to remain competitive on the back of a volatile commodity market and it will continue to focus on volume growth and maintaining the good quality standard of our products.
“The performance of the consumer product segment is expected to remain stable, supported by a widening product range and the introduction of new products into new markets,” he added.
The property division, he said, will focus on completing the Megah Rise project in Petaling Jaya while striving to maintain and improve the operational excellence of its existing mall and property management business.
For the financial year ended Dec 31, 2018, its grains and agribusiness segment’s revenue increased by 5% to RM3.15 billion on the back of higher sales from all flour mills.
Revenue from the film exhibition and distribution segment rose by 12% to RM538 million, due to the strong performance of Malay titles and contribution from cinemas opened in 2017.
The environmental engineering and utilities segment also recorded higher revenue of RM205 million for the year, up by 57% as compared to a year before, while the property segment’s revenue went up 11% to RM53 million.
Source: The Sun Daily