Sime Darby's 9MFY25 net profit rises nearly 10% to RM1.3bil

The Star

27-05-2025

Datuk Jeffri Salim Davidson, group CEO, Sime Darby
KUALA LUMPUR: Sime Darby Bhd 's motors division continues to face increased competition with the rise in Chinese automotive brands that are increasingly dominating the market, said group CEO Datuk Jeffri Salim Davidson.
"The consumer segment remains challenging amid the continuing price war and industry overproduction in China," he added.
In a statement announcing the group's latest quarterly result, Jeffri noted that Toyota and Perodua under the UMW division continue to perform well in Malaysia, while the long-term prospects of the industrial division remain positive on the back of robust mining demand, despite the impact of the currency-related parts price adjustment.
Over the cumulative nine months period to March 31, 2025, Sime Darby reported a net profit from continuing operations of RM1.3bil, which reflects growth of 9.9% from the previous corresponding period.
It said the improved performance was mainly owing to the higher contribution from the UMW division and a higher one-off gain on disposal of Malaysia Vision Valley (MVV) land, despite lower profits from the industrial and motors divisions.
The group reported nine-month revenue of RM52.3bil, up 8.2% compared with RM48.34bil in the previous comparative period.
In the third quarter of the financial year (3QFY25), Sime Darby recorded a net profit of RM193mil compared to RM340mil in the year-ago quarter. Revenue was RM16.31bil compared to RM18.84bil in 3QFY24.
In the business divisions, the motors division reported a reduced pre-tax profit of RM114mil in 3QFY25 while the UMW division saw a decrease in pre-tax profit to RM194mil as a result of competitive market conditions.
The industrial division recorded a lower pre-tax profit of RM221mil, mainly due to reduced profits from the division's operations in Australasia.
Australasia's profits were impacted by a currency-related parts price adjustment, unfavourable weather conditions, and a weaker Australian dollar against the ringgit.
According to Jeffri, the reduction in inventories has resulted in a RM1.7bil improvement to the operating cash flow for the nine months ended March 31, 2025.
'While the current landscape is undoubtedly tough, our operating cash flow is positive and our balance sheet is strong, underpinned by sustained revenue. These are fundamentals that will see us through during these choppy waters,' he said.