KUALA LUMPUR: Sime Darby Bhd's net profit surged to RM2.29 billion in the second quarter (Q2) ended Dec 31, 2023, thanks to a RM2.0 billion gain on the disposal of Ramsay Sime Darby Health Care (RSDH) in December 2023.
Sime Darby reported a net profit of RM389 million a year ago.
The company's revenue was up 37.7 per cent to RM15.55 billion from RM11.29 billion a year ago.
Core net profit for the quarter, excluding the gain on disposal amounted to RM269 million, a 7.2 per cent improvement from the corresponding quarter last year.
In the quarter under review, Sime Darby said the Industrial division saw a 56.7 per cent jump in profit before interest and tax (PBIT) to RM351 million. It said the key driver was the division's Australasian operations, which recorded an increase in profit arising from higher product support and new equipment revenue.
"This was further supported by profits generated from the company's new acquisitions; Onsite Rental Group (Onsite) and Cavpower Group (Cavpower)," Siem Darby said.
Sime Darby reported a 27.2 per cent increase in overall PBIT to RM192 million in the quarter udner review, driven by the Malaysian operations which recorded a significant increase in PBIT of 84.3 per cent from RM70 million to RM129 million.
Meanwhile, it said PBIT for the Singaporean operations increased by 87.5 per cent, mainly due to increased demand for electric vehicles.
"The strong performance by our Malaysian and Singaporean operations helped to cushion the impact of low vehicle margins at the division's Chinese operations," it said.
For the cumulative six months ended Dec 31, 2023, Sime Darby's net profit jumped to RM2.88 billion from RM596 million, on the back of a revenue of RM29.53 billion, versus RM23.47 billion for the same period in financial year 2023.
Sime Darby announced an interim dividend of 3 sen per share for the first half of the financial year 2024 (FY24).
Sime Darby completed the disposal of RSDH and the acquisition of UMW Holdings Bhd in the second quarter of FY024..
"We are very excited that through this acquisition, we will be adding two leading mass market brands – Toyota and Perodua – into our portfolio. "This will help broaden our earnings and unlock further value for the company. Work is ongoing to ensure a smooth and seamless integration of UMW into the Sime Darby family," he added.
Jeffri said overall, Sime Darby's businesses performed well, with good returns from its recent acquisitions of Onsite and Cavpower.
"We are confident that the increased profits from our Australasian operations will further strengthen our Industrial business and continue to contribute positively to the group's earnings," he said.