by SHAHEERA AZNAM SHAH / pic by TMR FILE

SIME Darby Bhd’s net profit for its financial year 2021 (FY21) ended last June surged 73.78% to RM1.43 billion from RM820 million, achieved through the robust results from its motors division’s performance, mainly in China.

Its revenue for the year also rose 20.44% to RM44.48 billion from RM36.93 billion.

Net profit for the group’s fourth-quarter ended June 30, 2021 (4Q21) was 19% higher at RM211 million compared to a year ago, on the back of an almost 29% increase in revenue to RM11.34 billion.

The group declared a second interim dividend of 8 sen per share and a special dividend of 1 sen per share for 4Q21, which brings the total dividend payout for the financial year to 15 sen a share, representing a payout of RM1.02 billion or more than 70% of its net profit.

Sime Darby group CEO Datuk Jeffri Salim Davidson (picture) said the result signifies the group successful execution of Sime Darby’s 5-Year Value Creation Plan developed just after its demerger.

“We are very pleased with these results. Our profits have grown from RM618 million in FY18, the first year after the demerger, to just over RM1.4 billion this year.

“We have essentially doubled our earnings over the past four years.  It is also a testament to our very capable management team and our geographical footprint.

“The relatively strong demand for our products and services, despite the disruptions caused by the Covid-19 pandemic these two years have contributed to this performance,” he said in a statement today.

He added that the performance of Sime Darby’s motors division in the past year has been nothing short of exceptional due to strong demand for BMWs and super-luxury marques, especially in China.

“With the travel restrictions, many of our customers are unable to travel and are spending their excess cash on luxury items domestically.

“The industrial division had a slightly tougher year. While demand from our mining customers in Australia remains resilient, we have seen a softening of the market and extremely intense competition in China,” he said.

Jeffri Salim said the group has a strong order book moving into FY22 and a bullish view on commodity prices.

“As governments worldwide rely on infrastructure spending to stimulate their economies, we expect demand for construction and mining equipment to intensify,” he added.

He said Sime Darby had also remained committed to executing its plans to divest its non-core assets, which have generated approximately RM0.7 billion in proceeds to date.

In FY21, the group had benefited from an RM272 million gain from the sale of its stake in Tesco Malaysia.

Sime Darby also divested its interest in Eastern and Oriental Bhd and finalised a staggered exit for its three Jining River ports.