KUALA LUMPUR: Sime Darby Bhd posted a net profit of RM345mil in the second quarter ended Dec 31, 2021, which was significantly less than RM633mil recorded in the previous corresponding quarter, mainly owing to its divestment of equity in Tesco Malaysia in the comparative quarter.
The group reported revenue of RM10.5bil in the current quarter, which was 6.3% lower year-on-year (y-o-y).
The board of directors declared a first interim dividend of four sen per share with entitlement and payment dates on April 26, 2022, and May 11, 2022, respectively.
Stripping out of the one-off gain of RM272mil in 2QFY21, Sime Darby's current-quarter core profit was 4.4% lower y-o-y due mainly to lower profits from the industrial division's China and Australia's operations.
"On a purely core profit level, for Q2 FY2022, we were able to deliver resilient results despite tough market conditions, and this is testament to our strong foundation and the effective strategy which we have put in place,”
"The Chinese economy, driven by consumer-led spending, remains very strong. However, a slowdown in infrastructure spending led to a decline in demand for heavy equipment, which together with intense competition from local Chinese original equipment manufacturers, impacted our Industrial China business," said Sime Darby group CEO Datuk Jeffri Salim Davidson in a statement.
For its motor division, Jeffri said there was impact from supply constraints, which affected sales volume, especially in China.
However, the Malaysian operations were boosted by higher margins from car sales while commercial vehicle deliveries in New Zealand increased significantly during the second quarter.
Jeffri added that the group will continue to expand its luxury and electric vehicle distribution in China, the world's largest car market.
"We remain committed to our long-term growth strategy, which focuses on organic and inorganic expansion for the Motors and Industrial divisions in Asia Pacific.
"We believe our geographical spread across 19 countries in the world’s fastest growing economic region and our strong balance sheet places us in a good position to weather the short-term headwinds ahead and to capture any potential opportunities," he said.