KUALA LUMPUR, Nov 27 (Bernama) -- Sime Darby Bhd’s net profit for the first quarter ended Sept 30, 2023, jumped to RM589 million from RM207 million recorded in the same quarter last year.
Revenue improved to RM13.98 billion from RM12.18 billion previously, the group said in a filing with Bursa Malaysia today.
Sime Darby said the higher net profit was primarily driven by its effective business strategy, which saw the industrial division significantly rebound in the quarter under review compared to the same quarter last year.
Sime Darby group chief executive officer Datuk Jeffri Salim Davidson said the industrial business, in particular, has seen strong growth with a significant 65.7 per cent jump in the first quarter.
“This was primarily due to higher demand for product support and the positive contribution from Onsite Rental Group, an Australian specialist equipment rental business.
“We also completed the acquisition of Cavpower Group, the Caterpillar dealer for South Australia which is home to over 150 mining companies, and we are confident that there are tremendous opportunities for the heavy equipment and rental business,” he said.
Despite this solid start for FY2024, Jeffri Salim said the group is conscious of the risk ahead against a subdued global economic outlook.
“Looking forward, we are highly optimistic that the UMW Holdings Bhd deal will help to broaden our earnings and allow us to capitalise on the mass volume segment while unlocking further value by leveraging our proven strengths and capabilities in the automotive sector.
“In that regard, our shareholders have given us their support for our proposal to acquire Permodalan Nasional Bhd’s 61.2 per cent stake in UMW. This marks a significant milestone in the deal’s completion, which would position us to become a leading automotive player in Malaysia,” he added.
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