Sime Darby
Sime Darby Berhad Reports Higher Full-Year Net Profit of RM1.46 billion for FY2023
Petaling Jaya

Group’s Q4 Net Profit Up 124% to RM622 million

Sime Darby Berhad reported a 32.2% jump in net profit for the financial year ended 30 June 2023 (FY2023) at RM1.46 billion compared with RM1.1 billion in the financial year ended 30 June 2022 (FY2022).

Net profit was higher mainly due to improved results from Industrial division’s Australasia operations, strong performance from the Motors business in Malaysia, and a gain on the disposal of properties in Hong Kong.

The Group reported revenue of RM48.3 billion in FY2023, a 13.6% increase from FY2022.

“Our strong performance is a testament to our resilience, driven by our strategy amidst a challenging market environment. Despite the headwinds that we have been experiencing in China, our other markets have performed well,” said Dato’ Jeffri Salim Davidson, Sime Darby Berhad’s Group Chief Executive Officer.

For the Group’s fourth quarter ended 30 June 2023 (Q4 FY2023), net profit was 124% higher at RM622 million. Revenue for the quarter increased by 22.4% at RM13.3 billion, compared with RM10.9 billion in Q4 FY2022.

In Q4 FY2023, the Group’s profit before interest and tax (PBIT) for the Industrial division increased by 33.9% to RM375 million. This was driven mainly by higher parts revenue, which was supported by parts price increase and higher demand for maintenance of mining equipment.

“We are intent on growing our Industrial division in Australia. With our acquisition of Onsite Rental Group, which is a leader in the mining and construction equipment rental market, we are set to capture the growing demand across the resources, infrastructure, and energy sectors in Australia. We look forward to seeing Onsite continue to contribute positively to the Group’s earnings.

“Meanwhile, our recent announcement to acquire Cavpower Group, the Caterpillar dealer in South Australia, is a rare opportunity to expand our Industrial footprint in Australia,” added Dato’ Jeffri.

On the Motors front, PBIT increased by 104% to RM555 million in Q4 FY2023, largely due to a gain on the disposal of properties and strong Motors performance in Malaysia.

“Today, we announced the acquisition of 61.2% stake in UMW Holdings Berhad (UMW). This deal is a game-changing one, as it would give us full presence across the automotive spectrum with the addition of two much coveted mass volume brands into our Motors portfolio. This is also important to us, as it will help us strengthen our Motors business in Malaysia and enable us to play a much bigger role in the local automotive industry,” Dato’ Jeffri concluded.

Sime Darby declared a second interim dividend of 10 sen per share for Q4 FY2023. This brings the total dividend pay-out for FY2023 to 13 sen a share or RM886 million, representing a pay-out of 61 per cent of net profit.