KUALA LUMPUR (Nov 28): Sime Darby Bhd's (KL:SIME) net profit jumped 36% in the first quarter ended Sept 30, 2024 (1QFY2025) from a year ago, mainly on profit contributions from the UMW division and gain on disposal of Malaysia Vision Valley land.

Quarterly net profit stood at RM800 million or 11.70 sen per share, up 35.8% from RM589 million or 8.60 sen per share a year ago.

No dividends were declared during the quarter.

Quarterly revenue rose 30.6% to RM18.26 billion from RM13.98 billion, according to the group in a filing with Bursa Malaysia on Thursday.

In a separate statement, the group said quarterly core net profit also increased, with the UMW division contributing RM214 million in profit before interest and tax, primarily from its automotive business in Malaysia. 

For the quarter under review, the Industrial division recorded a pre-tax profit of RM343 million, reflecting a marginal decrease of 4.2%. 

"While [the group's business in] Australasia recorded lower profits mainly due to the impact of a parts price reduction, this was partially offset by contributions from the group’s two new subsidiaries, Onsite Rental Group and Cavpower Group," it said. 

The Motors division reported an overall profit before income tax of RM190 million in 1QFY2025, a drop of 6.4% from the same period last year. Strong electric vehicle (EV) sales in Singapore helped offset challenges in other markets, the group added.

Sime Darby said it is already benefiting from contributions from the Toyota and Perodua businesses — following the UMW acquisition. 

"In our Motors division, we are seeing encouraging trends, particularly in Singapore, where the shift towards EVs continues to gain momentum. While conditions remain challenging in China, we are taking proactive steps to optimise our portfolio," the group added.

Group chief executive officer Datuk Jeffri Salim Davidson said Sime Darby also successfully lowered its inventories during the quarter, following its inventory reduction initiatives, which resulted in higher operating cash flow.

The stock shed one sen or 0.4% to RM2.31 at Thursday's noon break, valuing the group at RM15.7 billion.