KUALA LUMPUR, Aug 25 — Sime Darby Bhd recorded a 74 per cent jump in net profit to RM1.43 billion for the financial ended June 30, 2021 (FY21) from RM820 million in the previous year.

Revenue surged 20 per cent to RM44.48 billion from RM36.93 billion previously.

In a filing with Bursa Malaysia today, the group attributed the robust results mainly to the motors division’s exceptional performance in most markets, particularly in China.

As for the net profit for the fourth quarter (Q4) of FY21, Sime Darby said it was 19 per cent higher at RM211 million from RM177 million a year ago, on the back of a nearly 29 per cent rise in revenue to RM11.3 billion.

Chief executive officer Datuk Jeffri Salim Davidson said its profit had grown from RM618 million in FY18 — the first year after the de-merger to create three pure-play entities — to just over RM1.4 billion this year.

“We have essentially doubled our earnings over the past four years. This is the result of the successful execution of our Five-Year Value Creation Plan developed just after the de-merger.

“It is also a testament to our very capable management team and our geographical footprint. Of course, the relatively strong demand for our products and services, despite the disruptions caused by the Covid-19 pandemic these two years, have contributed to this performance,” he said.

During the year, more BMW and Volvo showrooms were set up in China while Ramsay Sime Darby Health Care acquired Manipal Hospitals, Klang, increasing its regional network of hospitals to seven.

“Our motors division’s performance in the past year has been nothing short of exceptional. Demand for BMWs and our super-luxury marques have been extremely strong, especially in China.

“With the travel restrictions, many of our customers are unable to travel and are spending their excess cash on luxury items domestically,” Jeffri said.

The industrial division had a slightly tougher year. He said that while demand from mining customers in Australia remained resilient, there was a softening of the market and extremely intense competition in China.

“We do, however, have a strong order book moving into FY22 and a bullish view on commodity prices. As governments worldwide rely on infrastructure spending to stimulate their economies, we expect demand for construction and mining equipment to intensify,” he said.

Moving forward, Jeffri said the group expected that FY22 to be a challenging year, and it could not estimate the impact of the ongoing Covid-19 pandemic and trade tensions.

“However, our strong financial position and diversified operations should help us get through these challenges and place us in a good position for growth, once prospects and business sentiment improve,” he added.

Sime Darby has declared a second interim dividend of eight sen per share and special dividend of one sen per share for Q4 FY21.

This brings the total dividend payout for FY21 to 15 sen a share (FY20: 10 sen), representing a payout of RM1.02 billion or more than 70 per cent of net profit. — Bernama