PETALING JAYA: Sime Darby Bhd
believes the global economic outlook remains challenging, hampered by ongoing geopolitical tensions that are impacting supply chains and rising inflation risks.
Amid this uncertainty, the conglomerate anticipates business conditions to be subdued, also expecting the automotive industry to be pulled back by slower consumer demand and heightened competition.
It said sales in the affordable vehicle segment in Malaysia should stay resilient.
Releasing its results for the third quarter ended March 31, 2026 (3Q26) of the financial year ending June 30 (FY26), Sime Darby nevertheless saw net profit for 3Q26 surge by more than three times year-on-year (y-o-y) to RM654mil, despite revenue actually nudging 3.4% lower to RM15.8bil.
In a filing with Bursa Malaysia, the group attributed the significant jump in profits to the one-off gain from the disposal of its Malaysian Vision Valley (MVV) land in Negri Sembilan.
However, it went on to elaborate that for its industrial division, profit before interest and tax (PBIT) increased by 10.9% y-o-y to RM245mil in the current quarter mainly due to higher equipment and product support margins in Australia.
“This was partly offset by lower results from Malaysia, which was impacted by lower revenue, higher operating expenses and impairment of receivables,” said Sime Darby.
The group added that PBIT for its motors business increased by 25.4% y-o-y to RM143mil in the current quarter mainly due to better results from its Singapore and Hong Kong operations.
Sime Darby said: “The higher profitability in Singapore was supported by higher sales of electric vehicles, while the Hong Kong operations recorded higher revenue and lower operating expenses.
”It said lower finance costs during the quarter, mainly due to lower average borrowings, also helped improve profitability.
“For the nine months ended March 2026 (9M26), Sime Darby recorded a 10.9% y-o-y gain in bottom line to RM1.44bil, as turnover also improved marginally to RM52.8bil.
“In a nutshell, Sime Darby primarily attributed the improvement in 9M26 net profit to lower finance costs.
“Explaining further, it said the PBIT for its industrial division was actually 7% lower at RM838mil largely due to lower profit from Australia and Malaysia.
“The operations in Australia were impacted by lower product support and rental results, particularly in the first half of the financial year.
“Profit for the Malaysia operations declined mainly due to impairment of receivables in the current period compared with a significant reversal of impairment of receivables in the previous corresponding period as well as lower revenue,” it said, adding that included in the results of 9M25 was the gain on disposal of Chubb Singapore of RM18mil.
Meanwhile, Sime Darby reported that PBIT for its motors division increased by 13.3% in 9M26 to RM478mil primarily due to better results from the Singapore and Hong Kong operations, although it pointed out that this was partly offset by the lower profit from Australasia, which recorded lower revenue.
Moreover, the better results in 9M26 were also helped by the gain it made on the disposal of Sime Darby Lockton Insurance Brokers Sdn Bhd of RM29mil, as well as the gain on retranslation of legacy oil and gas liabilities of RM12mil.
Compared to the preceding quarter ended Dec 31, 2025, net profit jumped 51.7% from RM431mil, even as revenue slid 17% from RM19bil, which Sime Darby said was due to the gains made from the sale of its MVV land, which in turn was offset by lower PBIT from its business segments.
The group had declared a dividend of three sen per share back in 2Q26, but did not propose any for the quarter in review.
Group chief executive Datuk Jeffri Salim Davidson commented that Sime Darby’s 3Q26 results reflect the continued resilience of its portfolio, even as the group navigates a more complex operating environment.
“Our core businesses of industrial equipment and automotive have held their ground against ongoing market pressures.”
He said Sime Darby remains disciplined in cost management, enabling the conglomerate to keep its businesses strong even when conditions are uncertain, before adding that the group’s focus on strengthening its core, protecting market share, and ensuring it is well-positioned to drive sustainable long-term growth has remained consistent.
“Alongside our financial performance, we are mindful of the role we play in the broader economy and our responsibility as a flagbearer for Malaysia in international markets.
“To this end, we are committed to strengthening the ecosystems we operate in to advance the national Gear-Up agenda,” Jeffri observed.
“This includes developing Malaysian talent, supporting local businesses and suppliers, and contributing to the development of globally competitive Malaysian enterprises.”
For its industrial division, Sime Darby said the medium-to-long-term demand from the Australian mining industry for the group’s equipment and after-sales service is expected to remain strong.
It anticipates core financial performance for FY26 to be consistent with that of FY25.
