Sime Darby's 2Q net profit leaps on Tesco stake sale, motors division

KUALA LUMPUR: Sime Darby Bhd posted a net profit of RM633mil in the second quarter ended Dec 31, 2020, more than twice the net profit of RM282mil in the previous corresponding quarter due to a stake sale in Tesco Malaysia and improved contribution from the motors division.

Excluding the net gain of RM272mil from the sale of its 30% interest in Tesco Malaysia, the group's net profit in the quarter was 28% higher year-on-year (y-o-y).

"Our Motors division has been a standout performer in the second quarter of FY2021, almost doubling its profit thanks to the outstanding contribution from our operations in China.

"Motors Australia’s performance was also noteworthy given our turnaround of the Sydney dealerships, which we acquired in 2019.

"We have been fortunate that demand for luxury cars has remained relatively robust during this period," said group CEO Datuk Jeffri Salim Davidson in a statement.

Profit before interest and tax surged 88.6% y-o-y to RM843mil.

Revenue meanwhile was up 10.1% to RM11.24bil from RM10.21bil in the comparative quarter.

The board of directors declared an interim dividend of two sen per share and a special dividend of four sen per share.

Over the two quarters of FY2021, Sime Darby recorded a 73.1% jump in net profit to RM914mil from RM528mil in the same period in 2019.

Revenue for the six months period was RM22.1bil, 12.4% higher from RM19.7bil in 1HFY2020.

Sime Darby said it is well-positioned to ride the wave of demand for luxury cars but is mindful of the risks from the ongoing Covid-19 pandemic as well as the slowing demand at its coal mining segment in Australia due to coal import restrictions by China.

“Sime Darby has made employees’ safety and wellbeing a top priority throughout the pandemic and has adopted various country specific initiatives, among which include working from home where possible, COVID-19 screenings, regular disinfection of facilities and support for physical and mental health, to name a few.

"We aim to ensure that our workplaces are safe and with minimal risk of COVID-19 infection to our employees, customers and the community,” said Jeffri Salim.
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Sime Darby , Tesco , motors , Jeffri Salim Davidson


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