PPB Group sees Wilmar losses as short term
Its managing director Lim Soon Hua said PPB Group’s substantial stake in Wilmar was a long-term investment.
“We believe it is a one-off, short term setback for Wilmar’s operations. We remain confident about the long-term prospects for Wilmar,” he said after the group’s briefing for its first half results on Tuesday.
Wilmar, which is the world’s largest agribusiness trader, had reportedly made untimely purchases in soybean, resulting in losses for the quarter.
Wilmar has contributed between 60% and 70% of PPB Group’s profits over the years.
PPB Group, which is involved in the flour milling, plantations and property, posted a net loss of RM78.7mil in its second quarter ended June 30, on the back of RM1.06bil in revenue.
It said Wilmar had contributed to a RM170mil loss in the quarter under review.