PPB Group Warns Geopolitical Tensions Threaten Wheat Business

PPB Group Bhd, a diversified company listed on the Kuala Lumpur Stock Exchange (KLSE), has warned that escalating geopolitical tensions could add cost pressures to its wheat business in the second half of this year.

Citing higher wheat, energy, and freight costs, Jeremy Goon, CEO of FFM Bhd (PPB's 80%-owned grains and agribusiness arm), said rising input costs may squeeze margins, especially in the second half of the year.

PPB's gross profit margin narrowed to 12.9% in the first six months ended June 30, 2026, from 13.5% a year earlier, due to higher input costs.

The company sources its wheat mainly from Australia, the US, and Canada, with PPB's core wheat supply remaining secure despite disruptions in the Black Sea region, which accounts for about 30% of global wheat exports.

FFM operates five flour mills in Malaysia and two in Vietnam, as well as having a stake in an associate in Thailand and interests in seven associates in China. The grains and agribusiness segment contributed 67.3% to PPB's total revenue of RM2.6 billion in the first half of this year.