KUALA LUMPUR: Sime Darby Bhd's net profit for the first quarter ended Sept 30, 2024 (1Q FY2025) surged to RM800 million, up from RM589 million in the same period last year.
Revenue climbed 30.6 per cent to RM18.26 billion, compared with RM13.98 billion previously, the conglomerate said in a filing with Bursa Malaysia.
The strong performance was attributed to profit contributions from its wholly owned subsidiary, UMW Holdings, and a gain from the disposal of land in Malaysia Vision Valley.
"The group's core net profit for the quarter also rose, with the UMW division contributing RM214 million in profit before interest and tax, primarily from its automotive business in Malaysia.
"The higher profit was further driven by a gain of RM39 million from the retranslation of legacy oil and gas liabilities (compared to a loss of RM1 million in the previous corresponding period)," it said.
Sime Darby noted that its motor division reported an overall PBIT of RM190 million in Q1 FY2025, a decline of 6.4 per cent compared to the same period last year.
However, strong electric vehicle (EV) sales in Singapore helped to offset challenges in other markets.
"Despite challenging economic conditions, we are excited to begin FY2025 on a positive note. We are already benefiting from the contribution of the Toyota and Perodua businesses, two iconic brands added to our Malaysian portfolio following the UMW acquisition," it said.
Looking ahead, Sime Darby noted that the Industrial division's performance continues to be supported by strong demand for the group's products and after-sales services in the mining industry in Australasia, although the construction sector in China is expected to remain subdued.
"Demand for cars in Malaysia remains robust, and the Malaysian Automotive Association has forecast another record year for car sales in 2024, with total industry volume expected to exceed 800,000 units.
"However, the industry faces increased competition, particularly from Chinese original equipment manufacturers. Despite the challenges in the motor industry, the board expects the core financial performance for the year ending 30 June 2025 to remain in line with the previous year," it added.