Sime Darby group CEO Datuk Jeffri Salim Davidson said:
KUALA LUMPUR: Sime Darby Bhd
posted a strong set of financial results ended in the first quarter ended Sept 30, 2018 with net profit up 38% to RM225mil from the fourth quarter ended June 30, 2018.
It announced on Wednesday profit before interest and tax (PBIT) was RM347mil for its continuing operations, which comprises the group’s industrial, motors, logistics and healthcare businesses.
Revenue for continuing operations for the quarter rose RM8.84bil, an increase of 8.6% on-year.
“Core net profit, which excludes one-off gains, impairments and provisions incurred increased by 57% on-year to RM192mil from RM122mil,” it said.
Sime Darby group CEO Datuk Jeffri Salim Davidson said: “Our operational results have been very encouraging. The activity in mining and construction sectors in Australia remain strong.
“Our order book looks good and demand is high for equipment deliveries, parts and services from key customers across all parts of the business.”
He said there were some one-off adjustments in its just-ended results. It made a pre-tax gain of RM78mil from the sale of Weifang Water in China.
However, this was however, partially off-set by additional impairment of its equity interest in Eastern & Oriental made to ensure that it is carried at fair value based on market price.
Revenue for the motors division rose 8%, following higher unit sales in China and Malaysia. It reported a PBIT of RM105mil this quarter, compared to RM112mil a year ago.
“The comparatively lower PBIT was largely due to lower margins in China as a result of industry-wide heavy discounting,” Sime Darby said.
However, the division’s operations in Malaysia's core PBIT rpse 39% to RM39mil, due to a boost in sales during the zero-rated GST period between July and August 2018.
As for its logistics division, it reported a PBIT of RM89mil compared to RM18mil a year ago, primarily due to a gain of RM78mil from the disposal of Weifang Water.
Ramsay Sime Darby Health Care, Sime Darby Berhad’s 50:50 joint venture with Ramsay Health Care achieved a PBIT of RM15mil in Q1 FY2019 compared to RM12mil a year ago.
Sime Darby said this was largely due to higher revenue from both the Malaysian and Indonesian operations.
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