Sime Darby property division pre-tax profit up 17% in Q4 FY2014/15

KUALA LUMPUR (Aug 26): Sime Darby Bhd announced a profit before interest and tax for its property division of RM416.4 million for the last quarter of its financial year ended June 2015 (FY2014/2015), up 17% from RM356.5 million a year ago.

“The 17% increase was largely due to the gain on disposal of the 50% equity interest in Sime Darby Sunsuria Development Sdn Bhd amounting to RM157.2 million,” the group said in a statement today.

The division is also ahead of schedule in its constrcution of the Bandar Bukit Raja, City of Elmina, Nilai Impian, Serenia City and Taman Pasir Putih townships.

For the full financial year 2014/2015, the division achieved a gross sales value of RM2.1 billion with 1,659 units sold.

On the a whole, we expect the global economic and business environment to remain challenging in view of the economic slowdown coupled with currency devaluation, potential interest rate hikes and volatility in the foreign exchange rates,” the group said.

Sime Darby expects the Malaysian residential market to remain subdued, underpinned by cautious consumer sentiment and tighter lending policies.

“However, we expect  sustained demand for the property division’s landed properties in sought-after locations in the Greater Kuala Lumpur region,” the group added.

The Sime Darby group posted a pre-tax profit of RM1.1 billion and a net profit of RM988.7 million for the fourth quarter ended 30 June 2015.

The group’s pre-tax profit and net profit for Q4FY2014/15 declined 17% compared with previously.

Over its full financial year (FY2014/15), the group registered a pre-tax profit of RM3 billion and a net profit of RM2.3 billion, a decline of 24% and 31% respectively.

The net profit is 7.5% below the group’s net profit target of RM2.5 billion for the full year.

The average return on shareholders funds was 7.8% compared with the company's target of 8.5%.