Sime Darby's 2Q net profit rises to RM2.29bil, declares 3c div/share

KUALA LUMPUR: After wrapping an eventful quarter, Sime Darby Bhd group CEO Datuk Jeffri Salim Davidson said the group will now focus on the growth of its two core businesses and work towards the seamless integration of UMW Holdings Bhd.

In the second quarter ended Dec 31, 2023 (2QFY24), Sime Darby reported a net profit of RM2.29bil, which was a leap higher from RM389mil in the same quarter in FY23, mainly owing to the RM2bil gain on the disposal of Ramsay Sime Darby Health Care (RSDH) in December 2023.

The group's earnings per share surged to 33.6 sen from 5.7 sen in the comparative quarter.

The board of directors announced an interim dividend of three sen per share for the first half of FY24.

Excluding the gain on disposal, Sime Darby said core net profit for the quarter amounted to RM269mil, a 7.2% improvement from the corresponding quarter last year.

Revenue for the quarter under review, meanwhile, rose to RM15.55bil from RM11.29bil in 2QFY23.

According to Sime Darby, profit before interest and tax (PBIT) for the industrial division jumped 56.7% to RM351mil, driven by the division's Australasian operations.

The improved performance was also supported by profits generated from the group’s new acquisitions: Onsite Rental Group (Onsite) and Cavpower Group (Cavpower).

In the motors division, PBIT increased 27.2% to RM192mil in 2QFY24, driven by the Malaysian operations, which recorded a significant increase in PBIT of 84.3% from RM70mil to RM129mil.

"The strong performance by our Malaysian and Singaporean operations helped to cushion the impact of low vehicle margins at the division’s Chinese Mainland operations," said Jeffri in a statement.

Cumulatively, Sime Darby's net profit over the first six months of the financial year came to RM2.88bil on revenue of RM29.53bil, as compared to net profit of RM596mil on revenue of RM23.47bil in same period a year earlier.

“Overall, our businesses performed well. On the Industrial front, we are seeing good returns from our recent acquisitions of Onsite and Cavpower, which contributed to the division’s strong growth in the quarter under review.

"We are confident that the increased profits from our Australasian operations will further strengthen our Industrial business and continue to contribute positively to the Group’s earnings,” said Jeffri.

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Sime Darby , Jeffri Salim , motor , industrial , UMW , RSDH


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