PETALING JAYA: Sime Darby Bhd reported a net profit of RM246 million for the group’s first quarter (Q1) ended Sept 30, 2019 (Q120), a 9.3% increase from RM225 million in the same quarter a year ago, driven by strong growth in the group’s industrial division, particularly its Australasia and China operations, as well as improvement in the group’s motors business in China.
Revenue was up 7.1% at RM9.48 billion compared with RM8.85 million in Q1 19.
Excluding one-off gains, impairments and provisions, the group’s core net profit rose 42.9% year-on-year (yoy) from RM189 million to RM270 million.
Sime Darby group CEO Datuk Jeffri Salim Davidson said it has reported a good set of results, with its industrial division recording wins in most markets, riding on the mining and construction waves to enjoy increased sales in the China and Australasia region.
“Our order book for the industrial division is solid at RM2.5 billion as at Sept 30, 2019. Our motors division too saw significant improvements, particularly in the China market this quarter from higher margins from vehicle sales.
“This is a promising start to FY20 given the uncertainties surrounding the global economy and the tough competition, especially in the Motors segment. While we are cautiously optimistic of the prospects ahead, we remain focused on integrating our new acquisitions and on executing our strategies,“ he said in a statement.
The industrial division reported a pretax profit of RM260 million for the quarter compared to RM184 million in the same period in FY2019, bolstered by improved contributions from all regions, particularly Australasia.
The motors division saw its pretax profit increase by 27.6% for the quarter on improved margins at BMW China with profits more than doubling, while higher revenue and margins at its Hong Kong and Macau operations saw profits grow significantly from a low earnings base in the previous corresponding period.
The logistics division reported a pretax profit of RM6 million compared with RM89 million a year ago, which included a gain of RM78 million from the disposal of Weifang Water and a RM9 million profit contribution.
Ramsay Sime Darby Health Care, Sime Darby’s 50:50 joint venture with Ramsay Health Care maintained its performance for Q1 20, contributing a pretax profit of RM15 million to the group.
The board expects the group’s performance for FY20 to be satisfactory.
At the noon break, Sime Darby’s share price was unchanged at RM2.30 on 724,800 shares done.
