Sime Darby pre tax profit, revenue rises in third quarter of 2017
KUALA LUMPUR: Sime Darby Bhd’s pre-tax profit jumped to RM1.01 billion in the third quarter ended March 31, 2017 from RM791 million recorded in the same period last year, due to improved contributions from the plantations, industrial and motor divisions.
Revenue for the quarter increased to RM12.45 billion from RM10.23 billion, previously.
For the nine-month period, the conglomerate’s pre-tax profit surged to RM2.56 billion from RM1.73 billion in the same period a year earlier, while revenue rose to RM34.88 billion from RM32.24 billion.
Sime Darby president and group chief executive Tan Sri Mohd Bakke Salleh said the group’s year-to-date results were largely supported by higher crude palm oil (CPO) prices, averaging RM2,861 per tonne in the first nine months compared with RM2,113 per tonne in the same period last year.
“Stabilising coal prices, as well as, increased activity in the construction sector in China and Malaysia served as catalysts for the Industrial division.
“Despite tightening regulations and rising import costs, we are encouraged by the motors division performance, driven by higher demand in key markets,” he said in a statement today.
On the company’s listing plans for its plantation and property divisions, Mohd Bakke said:”The listing is on track.”
The plantation division registered a pre-tax profit of RM732 million for the third quarter compared with RM92 million, year-on-year, resulted from the division’s continued efforts to drive various initiatives to manage cost and improve productivity.
The division’s earnings was further enhanced by average CPO selling price realised, which was 40 per cent higher, year-on-year, at RM3,088 per tonne for the current quarter against RM2,200 per tonne in the previous corresponding quarter.
Fresh fruit bunch production across the division improved significantly by 18 per cent, yearon-year, in the third quarter with Malaysia and Indonesia posting an increase of 20 per cent and 7.0 per cent, respectively.
The industrial division’s pre-tax profit for third quarter 2017 improved by eight per cent to RM82 million from RM76 million in the same period last year, mainly due to higher contributions from Australasia, China/Hong Kong and Malaysia. — Bernama