KUALA LUMPUR, Feb 26 — Sime Darby Bhd posted a lower net profit of RM282 million in the second quarter ended Dec 31, 2019 (Q2) compared to RM317 million in the same quarter of the previous year.
Revenue, however, was higher at RM10.21 billion from RM9.42 billion previously.
The 11 per cent decline in net profit was mainly due to recognition of a deferred tax credit of RM129 million arising from the change in Real Property Gains Tax (RPGT) rates in Malaysia in the previous corresponding period.
Excluding this item, the group’s net profit would have increased by 50 per cent, Sime Darby said in a filing to Bursa Malaysia today.
It said the industrial division recorded an increase of 49.5 per cent to RM287 million in the current quarter, amid higher revenue from Australasia and China.
Meanwhile, the motor division saw profit rise 5.9 per cent to RM143 million supported by a significant increase in profits in China (including Hong Kong, Macau and Taiwan), mainly from improved margins and higher revenue at the BMW China operations.
This was largely offset by the weaker results in the Singapore operations as a result of lower margins.
In contrast, the logistics division’s profit decreased by 53.3 per cent to RM7 million as the current quarter includes share of loss from joint ventures of RM6 million.
Overall, the company recorded a net profit of RM528 million in the first half ended December 31, 2019 versus RM542 million in the same period previously, while revenue was up at RM19.69 billion from RM18.27 billion.
In a statement, group chief executive officer Datuk Jeffri Salim Davidson said the company is cautious about the prospects for the second half against the backdrop of the Covid-19 outbreak.
“Nevertheless, we are hopeful that the strong first half will help cushion the impact.
“It is still too early to predict the full impact of the outbreak on our operations, particularly for China and Singapore, but we are actively managing the situation, with the safety and wellbeing of our employees, customers and visitors to our facilities being our top priority,” he added. — Bernama
