Sime Darby’s 1H FY19 net profit jumps 69.4 per cent
KUALA LUMPUR: Sime Darby Bhd’s net profit increased by 69.4 per cent year- on-year (y- o-y) to RM542 million for the six-month period ended Dec 31, 2018 (1H19) from RM320 million in 1H18.
Revenue for 1H19 stood at RM18.3 billion, a 7.7 per cent increase y- o-y from RM17.0 billion previously.
In a statement yesterday, Sime Darby said its profit before interest and tax surged 36.2 per cent y- o-y to RM674 million.
“Sime Darby Bhd’s performance in 1H19 was pretty solid largely due to our industrial division in Australia, as demand for our products and services from the mining and construction sector there has been strong.
“However, we are seeing a slight softening in the group’s motors business, particularly in China and Singapore,” said group chief executive officer Datuk Jeffri Salim Davidson.
During the period, the group benefited from an upturn in the mining and construction sectors, which translated into higher contribution from equipment deliveries and higher margins from product support for the industrial division.
This cushioned the impact of waning consumer sentiment amidst a slowing global economy, which affected much of the group’s motors business, it said.
The group also announced an interim dividend of two sen per share for the financial year ending June 30, 2019.
The company’s net profit for the second quarter of the 2019 financial year ended Dec 31, 2018 also rose to RM317 million, while revenue was 6.9 per cent higher at RM9.5 billion. — Bernama