Sime Darby Berhad Q1 Net Profit Up 14 per cent to RM281 million

KUALA LUMPUR: Sime Darby Berhad reported a net profit of RM281 million for the group’s first quarter ended 30 September 2020 (Q1 FY2021), a 14.2 per cent increase from its first quarter ended 30 September 2019 (Q1 FY2020), on strong growth in the group’s Motors division, particularly in China.

Revenue for the first quarter was up 14.8 per cent at RM10.9 billion, while profit before interest and tax (PBIT) was 17.6 per cent higher year-on-year (YoY) at RM447 million.

“The Motors division staged a comeback, with most markets posting an increase in profits, thanks to the easing of restrictions which facilitated consumer spending.

"However, we also saw the impact of lower coal prices in our Industrial division, with a cut back in mining operations translating to lower equipment deliveries and parts sales,” said Dato’ Jeffri Salim Davidson, Sime Darby Berhad’s Group Chief Executive Officer.

“While it is an encouraging start to FY2021, we are mindful of the ever-present risk of the resurgence of COVID-19 that could adversely impact the global economy and our prospects ahead. We remain focused on executing our strategies and managing efficiency in equal measure.”

The Industrial division’s PBIT decreased by 24.6 per cent YoY to RM196 million in the first quarter of FY2021, mainly due to lower equipment deliveries and parts sales in Australia following the decline in coal prices. China’s Industrial division continued to perform well and registered a 38.1 per cent increase in PBIT for the quarter, compared with its corresponding quarter in FY2020.

The Motors division’s PBIT increased by 66.4 per cent YoY to RM223 million in the first quarter of FY2021, with most countries registering higher profits. Profits from the Division’s China operations increased significantly by 78.1 per cent mainly due to resurgent vehicle sales.

The Logistics division continued to be under pressure, with port operations registering a decline in bulk cargo throughput of 36.5 per cent mainly due to stiff competition.