Friday 14 Jun 2024
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KUALA LUMPUR (May 23): Sime Darby Bhd (KL:SIME), which assembles motor vehicles and sells heavy equipment, said on Thursday its net profit rose 41.7% for the third quarter from a year earlier, thanks to higher sales and income from newly acquired businesses.

Net profit for the three months ended March 31, 2024 (3QFY2024) was RM340 million, compared with RM240 million a year earlier, Sime Darby said in an exchange filing on Thursday. Revenue for the quarter surged 63.4% year-on-year to RM18.84 billion, from RM11.53 billion previously.

Sime Darby said it “continues to face challenging business conditions in China”, where demand for industrial equipment is expected to remain subdued, while intense competition will drag on its automotive sales there.

The company also flagged cost inflation pressures and continued high interest rates, particularly in Australasia.

Still, its financial performance for FY2024 would be “significantly better” than that of FY2023, thanks to one-off gains from the disposal of non-core assets, Sime Darby added.

In terms of segment, earnings before interest and tax at its industrial division increased by 52% to RM359 million during the third quarter, thanks to an increase in product support and mining equipment deliveries, as well as profit from subsidiaries including Onsite Rental Group and Cavpower Group.

Meanwhile, earnings before interest and tax at its automotive segment rose 5.9% to RM180 million, thanks to a surge in sales in Malaysia and higher electric vehicle sales in Singapore.

For the nine months ended March 31, Sime Darby’s net profit nearly tripled to RM3.22 billion from RM836.00 million over the same period a year earlier, thanks to consolidation of results from UMW Holdings Bhd.

The company booked a RM2 billion gain on the disposal of Ramsay Sime Darby Health Care and RM251 million in after-tax gain on the disposal of Malaysia Vision Valley land to Sime Darby Property Bhd (KL:SIMEPROP).

Revenue for the July-March period rose 38% year-on-year to RM48.34 billion from RM35 billion.

Shares of Sime Darby rose 1.9% to RM2.86, valuing the company at RM11.2 billion at midday trading break.

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