by BERNAMA

Sime Darby Bhd’s net profit grew 53.4 per cent to RM948 million in the financial year ended June 30, 2019 (FY19) from RM618 million in the previous financial year.

Revenue improved to RM36.16 billion, beating FY18’s results by 6.9 per cent.

In a filing with Bursa Malaysia, Sime Darby said the better performance was driven by the strong performance of the Industrial Division on the back of a recovery in the mining and construction sectors in Australia and construction, specifically, in China.

But for a like-for-like comparison, only the group’s continuing operations, namely the industrial, motors, logistics and healthcare businesses, are relevant, the group said in a statement.

This follows the deconsolidation of its plantation and property businesses, following the listing of Sime Darby Plantation Bhd and Sime Darby Property Bhd on the Main Market of Bursa Malaysia after a demerger exercise in end-2017.

The group’s better performance was driven by the strong performance of the Industrial Division on the back of a recovery in the mining and construction sectors in Australia and construction, specifically, in China.

Sime Darby group chief executive officer Datuk Jeffri Salim Davidson said its industrial operations in Australia and China benefitted from an upcycle in the mining and construction sectors, while growth in the Motors Division decelerated in an environment of intense competition.

Moving forward, he said the group’s acquisition of New Zealand’s Gough Group Limited, expected to be completed by September 30, would place Sime Darby on a strong footing to build on its strengths and to continue delivering additional profits to shareholders.

“The transaction provides a rare opportunity for us to acquire one of Caterpillar’s oldest dealerships, reinforcing Sime Darby Industrial’s leadership position in Asia Pacific.

“Gough Group’s transport and material handling business, which represents premium global brands in New Zealand and Australia, is complementary to Sime Darby Motors’ existing commercial truck business in New Zealand and opens up new growth avenues for us in the region,” he added.

— BERNAMA