KUALA LUMPUR, Feb 23 — Sime Darby Bhd’s net profit rose by 12.8 per cent to RM389 million for the second quarter ended Dec 31, 2022 (2Q FY2023) from the RM345 million recorded a year earlier.
Its revenue also increased by 7.6 per cent year-on-year (y-o-y) to RM11.29 billion during the quarter from RM10.49 billion previously, driven by higher contribution from its industrial division, led by its Australasian operations.
“This was driven primarily by organic growth from the parts segment in Australia, as well as the engine business in Singapore,” group chief executive officer Datuk Jeffri Salim Davidson said in a statement to Bursa Malaysia today.
He said the group’s motors division saw improved sales volume from its Malaysian operations, cushioning the impact of reduced margins from China business during the quarter under review.
“With the recent reopening and the normalisation of the supply chain, we hope to see an improved performance for our car retail operations in China. China remains our largest revenue generator, and we remain confident in the long-term prospects of the market,” he said.
Jeffri noted that the recent completion of the sale of Weifang Port companies, which saw a RM147 million gain recorded in the quarter, marked the group’s full exit from the logistics business, thus allowing the group to fully focus on the growth of two core businesses — industrial and motors — across the Asia-Pacific region.
He said the fulfilment of orders placed during the Sales and Service Tax (SST)-free period supported the group’s motors operations in Malaysia to finish strong in the first half of financial year 2023 (1H FY2023), with new model launches across the group’s regional operations expected to help maintain robust sales momentum in the near term.
“Demand for our electric vehicle (EV) models across multiple brands have been strong, signifying the market’s readiness for electric mobility.
“BYD, our newest marque in the stable, was well received in the Malaysian market, which is a positive step towards Sime Darby’s goal of becoming the leader in EV,” he said.
According to Jeffri, the industrial division expects bullish commodity prices to continue boosting investment in the resources sectors, driving equipment sales and demand for maintenance.
“Looking ahead, exports of Australian coal are set to resume to China. We remain bullish on both the mining and construction industries in Australia,” he added.
Meanwhile, Sime Darby also announced an interim dividend of three sen per share for 1H FY2023. — Bernama