KUALA LUMPUR, May 25 — Sime Darby Bhd posted a higher net profit of RM300 million in the third quarter ended March 31, 2020 (3Q21), more than double the net profit of RM115 million reported in 3Q20.
Revenue also firmed to RM11.02 billion from RM8.42 billion previously, it said in a filing with Bursa Malaysia.
The group attributed the 160.9 per cent rise in its net profit to the mainly due to the strong performance of the motors division.
“The division recorded an increase in profit of 142.7 per cent to RM250 million in the current quarter, mainly due to the strong performance of the Greater China region, where profit before interest and tax (PBIT) more than tripled from RM37 million to RM125 million with higher revenue and margins,” it said.
Sime Darby said PBIT for Australasia also more than tripled from RM15 million to RM54 million, with higher revenue and operating margins.
Meanwhile for industrial divisions, Sime Darby said PBIT from the Australasian operations declined 7.8 per cent mainly due to lower equipment and parts revenue.
“This was partly offset by the higher PBIT from the China operations which was adversely impacted by the Covid-19 outbreak in the previous corresponding period,” it said.
In separate statement, group chief executive officer Datuk Jeffri Salim Davidson said the motors division continued to perform well in the third quarter of financial year 2021 (FY2021) on the back of sustained strong demand for luxury cars, especially in the key markets of China and Australasia.
“Restrictions on international travel have diverted domestic spending to premium and luxury brands, which have benefitted us,” he said.
On prospects, Sime Darby said the rebound in motor vehicle sales has generally been strong in most countries, especially in China.
However, the motors division is experiencing supply shortages for certain new models, partly due to semiconductor chip shortages and this is expected to improve in the coming months.
Besides, fiscal stimulus measures to support growth in countries such as China are expected to continue supporting equipment sales for the industrial division.
“However, strong competition and changes in product mix would unfavourably impact margins.
“In addition, the China’s import restrictions on some Australian exports such as coal may adversely impact equipment sales in Australia,” it said. — Bernama
