KUALA LUMPUR: Sime Darby Bhd
delivered a solid financial performance in FY26, with a higher core profit backed by strong contribution from its motors division.
After stripping out one-off gains, the group's core profit of RM1.55bil was 32.6% higher over the year.
The group's net profit of RM1.76bil in FY26, however, was down from RM2.06bil in the previous year due to the higher pre-tax gain of RM901mil on the disposal of Malaysia Vision Valley (MVV) land in FY25, as compared to a gain of RM434mil in FY26.
FY26 revenue was slightly lower at RM69.47bil compared to RM70.06bil in FY25.
Group CEO Datuk Jeffri Salim Davidson said there was improvement in the China business, as well as higher electric vehicle sales in Singapore and better overall vehicle sales in Malaysia.
However, he noted that the year was marked by continued uncertainty across several key markets, competitive pressures in the automotive sector and softer demand in the resource sector value chain, which affected the Industrial business.
“Our diversified portfolio and geographical footprint remain a winning combination for Sime, allowing us to deliver robust results as we navigate market cycles,” he added.
In the fourth quarter, Sime Darby recorded a net profit of RM322mil, down from RM763mil in the previous-year quarter.
Core profit, after excluding one-off gains, showed a 55% year-on-year increase to RM518mil, on the back of improvements in the motors division.
Quarterly revenue slipped to RM16.71bil from RM17.76bil in the previous comparative quarter.
The board declared a second interim dividned of 11 sen per share. The entitlement date is set on Sept 17, 2026, while payment is to be made on Sept 30, 2026.
“We have come through a challenging year and, operationally, we are in a good place, as reflected in the improvement in our core net profit.
"Looking ahead, we expect market headwinds to continue. Our strategy remains focused on building on the strong partnerships that we have with leading global brands and reinforcing market share to deliver sustainable long-term growth," said Jeffri.
