Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 25): Sime Darby Bhd’s first quarter net profit increased 37% to RM443 million from RM323 million a year earlier due to higher profit from its motor and property divisions. The motor division involves car dealerships.

A reduction in group finance cost also supported net profit growth in the first quarter ended Sept 30, 2016 (1QFY17), Sime Darby told Bursa Malaysia today. Sime Darby said 1QFY17 revenue, however, decreased to RM10.1 billion from RM10.17 billion a year earlier.

"Profit before tax of the group at RM629 million was higher by 36.4% largely due to higher earnings from motors and property and reduction in finance costs," Sime Darby said.

Sime Darby said its plantation, industrial and logistics units reported lower profit from a year earlier. The industrial division involves heavy equipment dealership.

"The plantation division registered a slightly lower profit by RM29 million to RM273 million compared [with the] previous year mainly attributable to the lower fresh fruit bunch production, lower oil extraction rate and lower crude palm oil sales volume.

"In this uncertain and difficult operating environment, the board expects the group’s performance for the financial year ending 30 June 2017 to be satisfactory," the group said.

In a separate statement, Sime Darby president and group chief executive Tan Sri Mohd Bakke Salleh said the company's latest financials reflect an uncertain business environment.

“Politically and economically, we are experiencing uncertainties and ambiguity in just about every sector. Considering the circumstances, Sime Darby has recorded a satisfactory financial performance in the quarter under review due largely to the performance of the motors division, continuing efforts to monetise assets and a reduction in finance costs," Mohd Bakke said.

At 12:30 p.m., Sime Darby shares rose two sen or 0.25% to RM8.06, for a market capitalisation of RM53.55 billion. The stock saw 1.47 million shares traded.

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