Thursday, November 26, 2020

Sime Darby posts higher net profit of RM281m in Q1

Sime Darby Bhd posted a higher net profit of RM281 million in the first quarter ended September 30, 2020. — Reuters pic
Sime Darby Bhd posted a higher net profit of RM281 million in the first quarter ended September 30, 2020. — Reuters pic

KUALA LUMPUR, Nov 26 — Sime Darby Bhd posted a higher net profit of RM281 million in the first quarter ended September 30, 2020 (Q1 FY2021) from RM246 million in the same period last year.

Revenue also firmed to RM10.88 billion from RM9.48 billion previously, it said in a filing with Bursa Malaysia.

Sime Darby said the net profit increased by 14.2 per cent on strong growth in the group’s motors division while profit before interest and tax (PBIT) was 17.6 per cent higher year-on-year (yoy) at RM447 million.

It said the motors division PBIT increased by 66.4 per cent yoy to RM223 million in the current quarter with most countries registering higher profits, supported by a 31.2 per cent increase in segment revenue and government grant income of RM33 million.

“Profit from the Greater China operations increased by 78.1 per cent, mainly attributable to strong vehicle sales in China while results from the Singapore operations improved due to higher BMW vehicle sales and lower inventory write-down and provisions,” it said.

It said the profit for the quarter includes net foreign exchange gains of RM7 million from the legacy oil and gas operations against a foreign exchange loss of RM3 million in the previous corresponding period. 

Meanwhile, the industrial division’s PBIT decreased by 24.6 per cent yoy to RM196 million in the current quarter, mainly due to lower equipment deliveries and parts sales in Australia following the fall in coal prices.

“For the logistics division, the port operations registered a decline in bulk cargo throughput by 36.5 per cent, mainly due to stiff competition,” it said.

On prospects, it said the impact of the coronavirus pandemic in the remaining months of the financial year cannot be accurately estimated at this juncture as there is still uncertainty in the timing of vaccine administration and the possible risk of resurgence in Covid-19 cases.

In a separate statement, group chief executive officer Datuk Jeffri Salim Davidson said the motors division staged a comeback, with most markets posting an increase in profits, thanks to the easing of restrictions which facilitated consumer spending.

“However, we also saw the impact of lower coal prices in our industrial division, with a cutback in mining operations translating to lower equipment deliveries and parts sales,” he said. — Bernama




Source: Malay Mail

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