KUALA LUMPUR, Aug 24 — Sime Darby Bhd’s net profit jumped 32.2 per cent to RM1.46 billion for the financial year ended June 30, 2023 (FY2023) from RM1.1 billion in the same period last year.

The better performance was mainly due to improved results from its industrial division as its Australasian operations delivered higher profits from the motors business in Malaysia, and a gain on the disposal of properties in Hong Kong, it said in a statement to Bursa Malaysia today.

The conglomerate said its revenue also increased 13.6 per cent to RM48.3 billion in FY2023 versus RM42.5 billion in FY2022.

For the fourth quarter ended June 30, 2023 (4Q FY2023), the group’s net profit was 124 per cent higher at RM622 million, while revenue for the quarter under review rose 22.4 per cent to RM13.3 billion, compared with RM10.9 billion in 4Q FY2022.

Sime Darby also declared a second interim dividend of 10 sen per share for 4Q FY2023, payable on Sept 29, 2023.

“This brings the total dividend pay-out for FY2023 to 13 sen a share or RM886 million, representing a pay-out of 61 per cent of net profit,” it said.

Group chief executive officer Datuk Jeffri Salim Davidson said the group’s strong performance was driven by its strategy amidst a challenging market environment.

“We are intent on growing our industrial division in Australia. With our acquisition of Onsite Rental Group Ltd, which is a leader in the mining and construction equipment rental market, we are set to capture the growing demand across the resources, infrastructure, and energy sectors in Australia.

“We look forward to seeing Onsite continue to contribute positively to the group’s earnings,” he said, adding that the group’s recent announcement to acquire Cavpower Group, the Caterpillar dealer in South Australia, is a rare opportunity to expand the company’s industrial footprint in Australia.

On its motors segment, Jeffri said Sime Darby announced the acquisition of a 61.2 per cent stake in UMW Holdings Bhd today, which is a game-changing deal for the company as it would give the group full presence across the automotive spectrum, with the addition of two much coveted mass volume brands — Perodua and Toyota — into its motors portfolio.

“This is also important to us, as it will help us strengthen our motors business in Malaysia and enable us to play a much bigger role in the local automotive industry,” he said.

Jeffri told Bernama in an exclusive interview earlier that Sime Darby is acquiring a 61.2 per cent stake in UMW from Permodalan Nasional Bhd (PNB) for RM3.57 billion in cash, to further scale up and strengthen its presence in the Malaysian automotive sector.

The exercise, one of the largest merger and acquisition deals in Malaysia, will strategically transform Sime Darby into a leading automotive player in the country with the addition of Toyota and Perodua, capturing up to 60 per cent of domestic automotive total industry volume. — Bernama