Sime Darby group CEO Datuk Jeffri Salim Davidson
KUALA LUMPUR: Sime Darby Bhd
wrapped its 2024 financial year (FY24) with a bottomline twice as large as the previous year's due to a RM2bil gain from its disposal of Ramsay Sime Darby Health Care (RSDH) in December 2023.
During the 12-month period, the group posted a net profit of RM3.31bil, which compares to RM1.46bil in FY23.
Excluding one-off items, the group's earnings remained 14% higher at RM1.3bil, largely owing to higher profits from its industrial business in Australia, the strong performance from the motors businesses in Malaysia, Singapore and Taiwan, as well as the maiden profit contribution from the UMW division.
Meanwhile, the group reported revenue of RM67.13bil against RM48.29bil in the previous year.
In line with the performance, Sime Darby declared a second interim dividend of 10 sen per share, bringing its total dividend payout in FY24 to 13 sen a share or RM886mil.
In 4QFY24 alone, the group said its performance was impacted by the motors division, which undertook a strategic review of its operations, incurring impairments of RM229mil.
Stripping out the one-off items, the division's profit before interest and tax (PBIT) remained 36.7% lower year-on-year (y-o-y), largely owing to the Chinese Mainland operations.
Consequently, the group's 4QFY24 net profit fell to RM89mil from RM622mil in 4QFY23. Revenue for the quarter under review was RM18.79bil against RM13.29bil in the year-ago quarter.
The group's industrial division, however, saw 4QFY24 PBIT grow 6.4% to RM399mil, owing mainly to contributions from Australia and Southeast Asia, cushioning the impact of the softer performance in China and New Zealand.
Quarterly PBIT for UMW was recorded at RM171mil, with the automotive business being the primary contributor.
Group CEO Datuk Jeffri Salim Davidson noted that FY24 proved to be a particularly challenging year for the group's 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.
"We are also very encouraged by how well poised our other businesses are in Australia and Malaysia,” he added in a statement.
