KUALA LUMPUR: Sime Darby Property Bhd's net profit slipped 11.5 per cent year-on-year (YoY) to RM128.26 million in the third quarter ended Sep 30, 2024 (Q3 2024) versus RM144.92 million in Q3 2023 due to losses suffered by its leisure segment.
For the quarter under review, SD Property's leisure segment posted losses of RM26 million, primarily due to higher depreciation charges following an asset review exercise carried out during the financial period.
Its revenue rose to RM1.09 billion in Q3 2024 versus RM1.05 billion in the same period last year.
For the nine-month period, the company's net profit expanded 49.6 per cent to RM413.8 million from RM276.66 million a year ago.
Revenue rose to RM3.28 billion from RM2.42 billion in the same period last year.
The company said the higher revenue was driven by strong sales momentum across a diverse product mix, increased site progress within the property development segment, and growing revenue contribution from the investment and asset management and leisure segments.
Sales for the period rose to RM3.2 billion, representing a 25 per cent increase YoY, achieving 91 per cent of the full-year sales target of RM3.5 billion.
The company said this also marks the highest nine-month sales performance in its history.
"The strategic diversity of our product mix, combined with strong contributions from our key townships and maintaining a healthy gross profit margin of 33 per cent has been critical to this performance," said SD Property group managing director Datuk Seri Azmir Merican.
The company expects a promising outlook for the property sector, supported by positive economic indicators.
It is is on track to achieve its 2024 sales target, supported by RM3.7 billion in unbilled sales and strong cash reserves.
"Our continued focus on diversifying our product mix and expanding recurring income streams, in line with our SHIFT25 strategy, positions us for future growth.
"As we move towards the close of 2024 and into 2025, we remain committed to multiplying value for people, businesses, economies, and the planet," added Azmir.