PETALING JAYA: Sime Darby Bhd’s net profit more than doubled to RM3.31 billion in the financial year 2024 (FY2024) from RM1.46 billion a year ago, largely due to a RM2 billion gain from the disposal of Ramsay Sime Darby Health Care (RSDH).
In a statement, the automotive and industrial conglomerate said that excluding one-off items, the group’s core net profit grew 14% to RM1.3 billion in FY2024.
This growth was driven by higher profits from its industrial business in Australia, increased equipment and product support sales, stronger motor businesses in Malaysia, Singapore, and Taiwan, and the maiden profit contribution from the UMW division.
Revenue jumped 39% to RM67.13 billion versus RM48.29 billion in FY2023, it said in a statement.
The group’s CEO Jeffri Salim Davidson said Sime Darby’s performance was solid, demonstrating the resilience and robustness of its diverse business portfolio across various markets despite facing considerable challenges during the year. “It was a busy year for the group in terms of acquisitions.
We completed the acquisitions of Cavpower and UMW, he said, adding that the sale of RSDH marked its exit from the healthcare sector, enabling the group to fully focus on growing its core motor and industrial businesses.
For the fourth quarter just ended (Q4 2024), net profit decreased to RM89 million from RM622 million, while revenue improved by 41.4% to RM18.79 billion from RM13.29 billion a year ago.
The lower net profit was mainly due to one-off impairments and provisions at the motor division, losses at its mainland China motor operations, higher finance costs, and deferred tax provisions.
According to its Bursa Malaysia filing, profit before interest and tax (PBIT) for the motor division shrank 98.4% to RM9 million in Q4 2024.
This decline was mainly due to one-off impairments and a RM229 million provision, while the previous corresponding period included a RM179 million property disposal gain.
The one-off impairments and provisions include those related to operation closures and impairment of goodwill.
Excluding these items, PBIT eased 367% mainly due to losses at its mainland China motor operations and lower dividend income.
During the quarter, its PBIT was mainly contributed by the automotive business. PBIT for UMW, the group’s third division, totalled RM171 million for the quarter, with the automotive business being the primary contributor.
Jeffri said FY2024 proved to be a particularly challenging year for its China operations.
However, we remain optimistic about China’s long-term prospects and continue to closely monitor our operations there to ensure we are well-positioned to capitalise on emerging trends and opportunities, he said.
Sime Darby declared a second interim dividend of 10 sen per share for Q4 2024, bringing the total dividend payout for FY2024 to 13 sen a share or RM886 million. As at 5pm, Sime Darby’s share price was down by 11 sen or 4.14% at RM2.55, giving the group a market capitalisation of RM17.38 billion.
