KUALA LUMPUR: Sime Darby Bhd more than doubled net profit for the financial year ended June 30, 2024 to RM3.3 billion, largely due to a RM2 billion gain from selling Ramsay Sime Darby Health Care (RSDH) in December 2023.
The group posted a net profit of RM1.4 billion in FY23.
The company's revenue grew by 39 per cent, rising from RM48.3 billion to RM67.1 billion.
Excluding one-off items, the core net profit for FY24 was RM1.3 billion, a 14 per cent increase from the previous year.
Its performance was driven by higher profits from its Industrial business in Australia, strong performance in Motors businesses in Malaysia, Singapore, and Taiwan, and the first profit contribution from the UMW division.
Sime Darby declared a second interim of 10 sen per share for the fourth quarter financial year 2024 (4QFY24), bringing the total dividend payout for the year to 13 sen a share or RM886 million.
The group's net profit from continuing operations however, was slightly lower by 1.9 per cent at RM1.26 billion for the year, mainly due to lower profit from Motors.
Discontinued operations include UMW Komatsu Heavy Equipment Sdn Bhd group and its healthcare and logistics' segments.
Sime Darby in its filing with Bursa Malaysia Securities said profit before interest and tax (PBIT) from the Motors division was down 44.5 per cent to RM584 million for the year due to one-off impairments and provisions of RM229 million and the absence of a RM179 million gain on disposal of property posted in FY23.
Excluding these one-off items, PBIT decreased by 6.9 per cent, primarily due to the losses recorded in Mainland China and lower dividend income of RM142 million against RM194 million in the previous corresponding period.
For the fourth quarter of financial year 2024, the group posted a 86 per cent drop in net profit from continuing operations due to oneoff impairments and provisions at the Motors division, losses at the Motors Mainland China operations, higher finance costs and deferred tax provisions.
Group chief executive officer Datuk Jeffri Salim Davidson said despite facing considerable challenges during the year, its performance was solid, demonstrating the resilience and robustness of its diverse business portfolio across the various markets.
Jeffri said the Industrial division in Australia experienced higher profits mainly due to increased sales of equipment and product support.
He added that the company remains positive about China's long-term prospects and is closely monitoring operations there to be well-positioned to take advantage of emerging trends and opportunities.