Sime Darby posts lower net profit of RM236m for Q1 FY2022

The logo of Sime Darby is seen at its headquarters in Kuala Lumpur February 7, 2018. — Reuters pic

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KUALA LUMPUR, Nov 29 — Sime Darby Bhd posted a lower net profit of RM236 million for the first quarter (Q1) ended Sept 30, 2021 from RM281 million in the same quarter last year.

Revenue also eased to RM10.67 billion in Q1 against RM18.88 billion recorded previously, due to its industrial operations in China absorbing the impact of a slowdown in construction activities in the quarter, it said in a statement to Bursa Malaysia today. 

The diversified group said its motors operations in China, on the other hand, continued to deliver a strong set of results with higher sales of super-luxury vehicles.

“The industrial and motors operations in all other markets performed well considering that many were under some form of movement restriction during the first two months of the quarter,” it said. 

Meanwhile, group chief executive officer Datuk Jeffri Salim Davidson announced that the group had completed the acquisition of Australia’s Salmon Earthmoving Holdings in October. 

“This will not only contribute between RM150 million and RM180 million to the group’s revenue for the financial year 2022, but also ensures our diversification into the construction rental sector and into a new market in New South Wales, Australia. 

“We will continue to look for further growth opportunities and to manage the efficiency of our operations in order to mitigate any impact brought upon by external factors,” he said.  — Bernama