Sime Darby Berhad Reports Q2 FY2023 Net Profit of RM389 million
Sime Darby Berhad Reports Q2 FY2023 Net Profit of RM389 million
Petaling Jaya
23 February 2023
Sime Darby Berhad posted a net profit of RM389 million for the Group’s second quarter ended 31 December 2022 (Q2 FY2023), a 12.8 per cent improvement from the previous corresponding quarter in FY2022. The Group’s revenue for the quarter was 7.6 per cent higher at RM11.29 billion, compared with RM10.49 billion in Q2 FY2022.
“Our Industrial division was the key contributor for the quarter under review, led by our Australasian operations which delivered higher profits. This was driven primarily through organic growth from the parts segment in Australia, as well as the engine business in Singapore.
Our Motors division meanwhile saw improved sales volume from our Malaysian operations, cushioning the impact of reduced margins from our China business during the quarter,” said Sime Darby Group Chief Executive Officer Dato’ Jeffri Salim Davidson.
“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 on the long-term prospects of the market.
The recent completion of the sale of Weifang Port companies, which saw a RM147 million gain recorded in this quarter, marked our full exit from our Logistics business – this allows us to fully focus on the growth of our two core businesses of Industrial and Motors across the Asia Pacific region,” he added.
The fulfilment of orders placed during the SST-free period supported the Group’s Motors operations in Malaysia to finish strong in 1HFY23. New model launches across the Group’s regional operations are expected to help maintain robust sales momentum in the near term.
“Demand for our 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.
And being one of the largest dealers of BMW globally, we are encouraged by BMW’s recent recognition as the global leader in the premium segment two years in a row. We hope to continue leveraging on the strength of the BMW brand and its exciting suite of products,” Dato’ Jeffri added.
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,” Dato’ Jeffri concluded.
Sime Darby Berhad announced an interim dividend of 3 sen per share for the first half of FY2023.