Sime Darby Bhd's lower FY19 net profit at RM948m

Sime Darby Group CEO Jeffri Salim Davidson speaks to reporters in Kuala Lumpur August 30, 2018. — Picture by Miera Zulyana
Sime Darby Group CEO Jeffri Salim Davidson speaks to reporters in Kuala Lumpur August 30, 2018. — Picture by Miera Zulyana

KUALA LUMPUR, Aug 27 — Sime Darby Bhd’s net profit for the financial year ended June 30, 2019 (FY19) fell to RM948 million from RM1.92 billion in FY18.

However, revenue improved to RM36.16 billion from RM33.83 billion previously.

In a filing with Bursa Malaysia, Sime Darby said the lower net profit was due to the deconsolidation of its plantation and property businesses, following the listing of Sime Darby Plantation Bhd and Sime Darby Property Bhd on the Main Market of Bursa Malaysia.

However, when compared with the group's continuing operations, namely the industrial, motors, logistics and healthcare businesses, Sime Darby's net profit grew 53.4 per cent to RM948 million from RM618 million in FY2018.

The better performance was driven by the strong performance of the Industrial Division on the back of a recovery in the mining and construction sectors in Australia and construction, specifically, in China.

Sime Darby group chief executive officer Datuk Jeffri Salim Davidson said its industrial operations in Australia and China benefitted from an upcycle in the mining and construction sectors, while growth in the Motors Division decelerated in an environment of intense competition.

Moving forward, he said the group's acquisition of New Zealand’s Gough Group Limited, expected to be completed by September 30, would place Sime Darby on a strong footing to build on its strengths and to continue delivering additional profits to shareholders.

“The transaction provides a rare opportunity for us to acquire one of Caterpillar’s oldest dealerships, reinforcing Sime Darby Industrial’s leadership position in Asia Pacific.

“Gough Group’s transport and material handling business, which represents premium global brands in New Zealand and Australia, is complementary to Sime Darby Motors’ existing commercial truck business in New Zealand and opens up new growth avenues for us in the region,” he added. — Bernama

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