Sime Darby’s posts net profit RM281 million in 1Q20

by NUR HANANI AZMAN/ FILE PIX

Sime Darby Bhd reported a net profit of RM281 million for the first quarter ended 30 September 2020 (Q121), a 14.2% increase from 1Q20, on strong growth in the group’s motors division, particularly in China.

Revenue for the first quarter was up 14.8% at RM10.9 billion.

Sime Darby group CEO Datuk Jeffri Salim Davidson said the group’s solid first quarter results were fuelled by China’s economic recovery.

“Our operations in Greater China performed exceptionally, growing profits by more than 70% for motors and over 30% for industrial during the quarter.

“The motors division staged a comeback, with most markets posting an increase in profits thanks to the easing of restrictions which facilitated consumer spending,” he said in a statement.

However, Sime Darby also saw the impact of lower coal prices in the Industrial division, with a cut back in mining operations translating to lower equipment deliveries and parts sales.

“While it is an encouraging start to FY21, we are mindful of the ever-present risk of the resurgence of COVID-19 that could adversely impact the global economy and our prospects ahead.

“We remain focused on executing our strategies and managing efficiency in equal measure,” he added.