Sime Darby's group CEO Datuk Jeffri Salim Davidson.
PETALING JAYA: Sime Darby Bhd
has made a strong start to the financial year 2025 (FY25), driven by contributions from its newly-acquired Toyota and Perodua businesses.
The group reported a higher net profit of RM800mil for its first quarter ended Sept 30, 2024 (1Q25).
Revenue for the group rose by 30.6% to RM18.26bil, compared with RM13.98bil in the 1Q24.
This strong performance was largely due to profit contribution from the UMW division and gain from the disposal of land in the Malaysia Vision Valley.
Core net profit for the 1Q25 also increased, with the UMW division contributing RM214mil in profit before interest and tax (PBIT), primarily from its automotive business in Malaysia.
For the quarter under review, the Industrial division recorded a PBIT of RM343mil, reflecting a marginal decrease of 4.2%.
While profits in Australasia were lower, mainly due to the impact of a parts price reduction, this was partially offset by contributions from the group’s two new subsidiaries, Onsite Rental Group and Cavpower Group.
The motors division reported an overall PBIT of RM190mil for 1Q25, a slight decline of by 6.4% compared to the same period last year.
Strong electric vehicle (EV) sales in Singapore helped offset challenges in other markets.
Sime Darby group chief executive officer Datuk Jeffri Salim Davidson said in a statement that despite very trying economic conditions, the group is excited to kick off FY25 on a positive note.
“We are already benefitting from the contribution from the Toyota and Perodua businesses – the two iconic brands which we added into our Malaysian portfolio following the UMW acquisition.
“In our motors division, we are seeing encouraging trends, particularly in Singapore where the shift towards EVs continues to gain momentum.
“While conditions remain challenging in China, we are taking proactive steps to optimise our portfolio.
“Apart from that, we have also successfully lowered our inventories during the quarter following our inventory reduction initiatives, which resulted in higher operating cash flows,” he said.
Jeffri also highlighted that the group’s newly launched brand, Sime, reflects its ongoing commitment to innovation, sustainability and customer-centricity, ensuring it remains at the forefront of the industries it operates in.
“Our refreshed identity reflects who we are today and our aspirations for the future.
“We remain focused on strengthening our core businesses of industrial equipment and automotive, and will continue to bridge opportunities to unlock value for our stakeholders,” concluded Jeffri.
