KUALA LUMPUR – Sime Darby Bhd recorded a 74% jump in net profit to RM1.43 billion for the financial year ended June 30, 2021 (FY21) from RM820 million the previous year.
Revenue surged 20% 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 China.
As for net profit for the fourth quarter of FY21, Sime Darby said it is 19% higher at RM211 million from RM177 million a year ago, on the back of a nearly 29% rise in revenue to RM11.3 billion.
Chief executive Datuk Jeffri Salim Davidson said the group’s profit grew from RM618 million in FY18 – the first year following a 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 a 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, contributed to this performance.”
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 has been extremely strong, especially in China,” said Jeffri.
“With the travel restrictions, many of our customers are unable to travel, and are spending their excess cash on luxury items domestically.”
He said the industrial division saw a slightly tougher year – demand from mining customers in Australia remained resilient, but 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.”
Moving forward, he said, the group expects FY22 to be a challenging year, and could not estimate the impact of the 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.”
Sime Darby declared a second interim dividend of 8 sen per share and special dividend of 1 sen per share for Q4 FY21.
This brings the total dividend payout for FY21 to 15 sen a share (compared with 10 sen for FY20), representing a payout of RM1.02 billion, or more than 70% of net profit. – Bernama, August 25, 2021
