PETALING JAYA: Sime Darby Bhd (Sime) today reported a higher net profit of RM800 million for its first quarter ended Sept 30, 2024 (Q1’25).
The group’s revenue rose by 30.6% to RM18.26 billion, compared with RM13.98 billion in the corresponding quarter of the previous financial year.
The strong performance was mainly driven by profit contribution from the UMW division and gain on the disposal of Malaysia Vision Valley land. The group’s core net profit for the quarter also increased, with the UMW division contributing RM214 million in profit before interest and tax (PBIT), primarily from its automotive business in Malaysia.
For the quarter under review, the industrial division recorded a PBIT of RM343 million, reflecting a marginal decrease of 4.2%. While Australasia recorded lower profit 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.
The motors division reported an overall PBIT of RM190 million in Q1’25, lower by 6.4% compared to the same period last year. Strong electric vehicle (EV) sales in Singapore helped offset challenges in other markets.
“Despite very trying economic conditions, we are excited to kick off FY2025 on a positive note. We are already benefitting from the contribution from the Toyota and Perodua businesses – the two iconic brands which we added into our Malaysian portfolio following the UMW acquisition,” said Sime group CEO Datuk Jeffri Salim Davidson.
The motors division, he added, is 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,” he said.
Jeffri said it lowered inventories during the quarter, which resulted in higher operating cash flows.
He also highlighted that the group’s newly launched brand, Sime reflects its ongoing commitment to innovation, sustainability and customer-centricity, ensuring it remains at the forefront of the industries it operates in.
“Our refreshed identity reflects who we are today and our aspirations for the future. We remain focused on strengthening our core businesses of industrial equipment and automotive and will continue to bridge opportunities to unlock value for our stakeholders,” Jeffri said.
