KUALA LUMPUR: Sime Darby Bhd posted a lower net profit of RM282 mil in the second quarter ended Dec 31, 2019 (2Q) compared to RM317 mil in the same quarter of the previous year.
Revenue, however, was higher at RM10.21 bil from RM9.42 bil previously.
The 11% decline in net profit was mainly due to recognition of a deferred tax credit of RM129 mil arising from the change in Real Property Gains Tax (RPGT) rates in Malaysia in the previous corresponding period.
Excluding this item, the group’s net profit would have increased by 50%, Sime Darby said in a filing to Bursa Malaysia today.
It said the industrial division recorded an increase of 49.5% to RM287 mil in the current quarter, amid higher revenue from Australasia and China.
Meanwhile, the motor division saw profit rise 5.9% to RM143 mil supported by a significant increase in profits in China (including Hong Kong, Macau and Taiwan), mainly from improved margins and higher revenue at the BMW China operations.
This was largely offset by the weaker results in the Singapore operations as a result of lower margins.
In contrast, the logistics division’s profit decreased by 53.3% to RM7 mil as the current quarter includes share of loss from joint ventures of RM6 mil.
Overall, the company recorded a net profit of RM528 mil in the first half ended Dec 31, 2019 versus RM542 mil in the same period previously, while revenue was up at RM19.69 bil from RM18.27 bil.
In a statement, group chief executive officer Datuk Jeffri Salim Davidson said the company is cautious about the prospects for the second half against the backdrop of the Covid-19 outbreak.
“Nevertheless, we are hopeful that the strong first half will help cushion the impact.
“It is still too early to predict the full impact of the outbreak on our operations, particularly for China and Singapore, but we are actively managing the situation, with the safety and wellbeing of our employees, customers and visitors to our facilities being our top priority,” he added. – Feb 26, 2020, Bernama
