KUALA LUMPUR: Sime Darby Bhd
maintained a stable underlying performance in the fist quarter of its financial year (1QFY26), with contributions from the UMW division driven higher by steady demand in the automotive business.
The group announced a net profit of RM355mil in 1QFY26, which was lower than RM800mil in the same quarter in 2024, due to the one-off gain from the disposal of Malaysia Vision Valley land in the earlier quarter.
Core earnings slipped from RM359mil in 1QFY25 to RM335mil in 1QFY26. Quarterly revenue, meanwhile, slid to RM18.03bil from RM18.26bil in 1QFY25.
For the quarter under review, the group's industrial division registered a 14.6% year-on-year (y-o-y) decline in pre-tax profit to RM293mil as it was impacted by lower equipment sales in Australasia due to a shift in timing for mining and construction equipment deliveries. There was also a lower translated pre-tax profit due to the stronger ringgit against the Australian dollar.
The motors division recorded a lower pre-tax profit of RM126mil, down 33.7% y-o-y, as weaker assembly performance in Malaysia, and softer commercial vehicle revenue and margins in Australasia impacted results.
However, the UMW division stood out with a higher pre-tax profit of RM261mil, an increase of 22% y-o-y.
“The group’s diversified portfolio continues to demonstrate its strength. While some regions faced headwinds, positive momentum in areas such as EV sales and data centre-driven projects helped offset these challenges.
"As we move forward, we are focused on operational discipline, cost management and delivering value for our stakeholders. The fundamentals of our businesses remain sound, and we are well-positioned for this financial year,” said Sime Darby CEO Datuk Jeffri Salim Davidson.
