Straits Herald August 27, 2019

Sime Darby has announced a second interim dividend of RM 0.07 sen per share and a special dividend of RM0.01 sen, is declared for FY2019. Together with the earlier interim dividend of RM0.02 sen per share, the total dividend for the year is RM0.10 sen per share.

Sime Darby Berhad reported a net profit of RM948 million for the financial year ended 30 June 2019 (FY2019), a 53.4 per cent jump from its previous financial year (FY2018), driven by the strong performance of the Industrial Division on the back of a recovery in the mining and construction sectors in Australia and construction, specifically, in China.

Revenue for the financial year stood at RM36.2 billion, beating FY2018’s results by 6.9 per cent, while profit before interest and tax (PBIT) was 28.8 per cent higher year-on-year (YoY) at RM1.38 billion. Excluding one-off gains, impairments and provisions, the Group’s core PBIT for FY2019 rose 22.1 per cent to RM1.5 billion YoY, while its core net profit saw a 13.8 per cent hike YoY to RM950 million.

The Group’s positive results in key markets for the Industrial Division helped compensate for the softness in the Motors Division’s profits in Singapore, Hong Kong and Australia.

Sime Darby Berhad reported a net profit of RM184 million for the quarter ended 30 June 2019 (Q4 FY2019), a 12.9 per cent increase from the corresponding quarter in FY2018.  

Revenue for Q4 FY2019 was 8.7 per cent higher YoY at RM9.3 billion, while PBIT was up 3.7 per cent YoY to RM367 million. Excluding one-off gains, impairments and provisions, the Group’s core PBIT for the quarter rose 13.2 per cent to RM 498 million YoY while its core net profit saw a 1.6 per cent YoY decline to RM315 million.

Sime Darby Berhad’s Group Chief Executive Officer Dato’ Jeffri Salim Davidson (handout photo by Sime Darby)

“Our Industrial operations in Australia and China were the clear winners in FY2019, as we benefitted from an upcycle in the mining and construction sectors, while growth in the Motors Division decelerated in an environment of intense competition,” Sime Darby Berhad’s Group Chief Executive Officer Dato’ Jeffri Salim Davidson said.

“Early signs show that the Industrial Division will continue to take the lead in FY2020. However, the pipeline of new models coming in from our stable of automotive brands are expected to generate some excitement in the market,” he added.

Sime Darby 2.0

On 30 November 2017, Sime Darby Berhad successfully completed the distribution and the listings of the company’s entire shareholdings in Sime Darby Plantation Berhad and Sime Darby Property Berhad on the Main Market of Bursa Malaysia Securities Berhad.

Accordingly, the results of the Plantation and Property businesses have been classified as Discontinued Operations and both Sime Darby Plantation Berhad and Sime Darby Property Berhad have been deconsolidated from Sime Darby Berhad.

Sime Dary Berhad is now focused on its Industrial, Motors, Logistics and Healthcare businesses (Continuing Operations).

For a like-for-like year-on-year comparison, only the Group’s Continuing Operations, namely the Industrial, Motors, Logistics and Healthcare businesses, are relevant.