Sime Darby's net profit falls to RM244mil in 3Q

KUALA LUMPUR: Sime Darby Bhd recorded a net profit of RM244mil in the third financial quarter ended March 31, 2022, an 18.67% decrease from RM300mil in the previous corresponding quarter.

Excluding one-off gains of RM60mil in 3QFY21, the group said it had largely sustained its performance for the quarter under review.

The group reported revenue of RM10.6bil, which was 4.1% lower from the comparative quarter.

In a statement, the group said net profit for the quarter under review was lower as its industrial and motor businesses were impacted by Covid-19-related disruptions in China and Australasia.

it added that its results were also impacted by a slowdown in construction activity in China, and supply chain constraints which were compounded by the military conflict in Ukraine.

For the nine-months ended March 31, 2022, Sime Darby's net profit was down to RM825mil from RM1.21bil in the previous comparative period.

It said this was mainly owing to one-off gains in 3QFY21 the form of a RM272mil gain from the disposal of Tesco Malaysia, a Singapore GST refund, and a RM33mil net reversal of impairment from the stake sale in Eastern & Oriental Bhd.

“On a core profit level for Q3 FY2022, we were able to deliver resilient results despite increasingly tough market conditions.

"Motors Malaysia was a standout performer as profits more than tripled from higher vehicle margins and higher profits from assembly operations.

"The reopening of economies and bullish commodity prices should sustain our business in the coming quarters,” said Sime Darby group CEO Datuk Jeffri Salim Davidson.

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