Sime Darby 3Q net profit declines 18.67% on Covid-19 related disruptions

KUALA LUMPUR (May 24): Sime Darby Bhd’s net profit in the third quarter ended March 31, 2022 (3QFY22) declined by 18.67% to RM244 million from RM300 million a year ago as the group’s core businesses of industrial and motors were impacted by Covid-19 related disruptions in both China and Australasia.

Earnings per share fell to 3.6 sen from 4.4 sen previously.

A Bursa Malaysia filing on Tuesday (May 24) showed that quarterly revenue slid by 4.07% to RM10.57 billion compared to RM11.02 billion a year prior.

For the full nine-month period, net profit tumbled by 32.04% to RM825 million from RM1.21 billion a year ago in the absence of a RM272 million gain from its Tesco Malaysia disposal, Singapore GST refund and a RM33 million net reversal of impairment from the sale of its stake in Eastern & Oriental Bhd.

Revenue, on the other hand, dipped 4.1% to RM31.78 billion from RM33.14 billion a year ago.

On a quarterly basis, net profit came in lower by 29.29% from RM345 million in the immediate preceding quarter (2QFY22) while revenue increased marginally by 0.34% from RM10.54 billion in 2QFY22.

Commenting on the group’s financial performance, Sime Darby group CEO Datuk Jeffri Salim Davidson said the group is able to deliver resilient results despite increasingly tough market conditions.

“Motors Malaysia was a standout performer as profits more than tripled from higher vehicle margins and higher profits from assembly operations. The reopening of economies and bullish commodity prices should sustain our business in the coming quarters.

“Despite the challenges inherent in the business environment today, Sime Darby continues to be supported by a solid balance sheet, broad geographical footprint, and strong brands.

“We remain committed to our long-term growth strategy and will continue to capitalise on opportunities to rationalise our portfolio and double our efforts to strengthen our core businesses of industrial and motors,” he said.

At noon break, shares in Sime Darby were one sen or 0.44% higher to RM2.29, giving it a market capitalisation of RM15.59 billion.

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