Sime Darby nine-month net profit rises to RM1.29 billion
PETALING JAYA: Sime Darby Bhd (Sime) reported net profit from continuing operations of RM1.29 billion for the nine-month period ended March 31, 2025 (9M25), a growth of 9.9% from the previous corresponding period.
The improved performance was mainly attributable to the higher contribution from the UMW division and a higher one-off gain on disposal of Malaysia Vision Valley land, despite lower profits from the industrial and motors divisions.
The group's revenue for the nine months increased by 8.2% to RM52.3 billion, compared with RM48.3 billion in the previous financial year.
For the third quarter ended March 31, 2025 (Q3'25), net profit saw a decrease to RM193 million, while revenue was down by 13.4% at RM16.3 billion.
During the quarter under review, the industrial division recorded lower profit before interest and tax (PBIT) of RM221 million, mainly due to reduced profits from the division's operations in Australasia. Profits In Australasia were impacted by a currency-related parts price adjustment, unfavourable weather conditions and a weaker Australian dollar against the ringgit.
The motors division reported a reduced PBIT of RM114 million in Q3'25, attributed to lower vehicle sales in most markets, as well as increased competition.
For the UMW division, PBIT for the quarter under review was largely contributed by the division's automotive business, particularly higher Perodua sales. However, the division saw a decline in PBIT to RM194 million as a result of competitive market conditions.
Sime Group CEO Datuk Jeffri Salim Davidson said, 'We continue to face external headwinds, particularly in the motors division with ongoing economic uncertainty and the rise of Chinese automotive brands increasingly dominating the market. The consumer segment remains challenging amid the continuing price war and industry overproduction in China.'
For the UMW division, he added, Toyota and Perodua continue to perform well in Malaysia.
'Despite the impact of the currency-related parts price adjustment, the long-term prospects for our industrial division remain positive on the back of robust mining demand,' he said, adding that, across the group, they remain focused on cost discipline, efficient inventory management and operational agility to navigate the current environment.
'As a result of our efforts, the reduction in inventories has resulted in a RM1.7 billion improvement to our operating cash flow for the nine months ended 31 March 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,' said Jeffri.
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