KUALA LUMPUR (Aug 17): Sime Darby Bhd’s net profit for the fourth quarter ended June 30, 2022 (4QFY22) rose 31.75% to RM278 million, from RM211 million a year prior, on the back of an improved contribution from its industrial division.

Earnings per share jumped to 4.1 sen from 3.1 sen, the group said in a filing with Bursa Malaysia on Wednesday (Aug 17).

Meanwhile, Sime Darby said its revenue for the quarter slipped 3.97% to RM10.85 billion, from RM11.3 billion for 4QFY21.

The group declared a second interim dividend of 7.5 sen for 4QFY22, with an ex-date of Sept 7, to be paid on Sept 30. This brought its total dividend payout to date for FY22 to 11.5 sen a share, amounting to RM783 million, representing a payout of 71% of net profit.

Sime Darby said its industrial division posted a 13.8% increase in profit before interest and tax to RM280 million for 4QFY22, which it mainly attributed to a 33.2% increase in profit from the Australasia region from RM199 million to RM265 million.

“This was predominantly attributed to higher equipment and parts revenue, as well as the contribution from the Salmon Earthmoving business, which was acquired in October 2021. This was partly offset by project losses recognised by Malaysian operations,” it added.

For the full year, Sime Darby’s net profit declined 22.6% to RM1.1 billion, from RM1.43 billion for FY21, due to a one-off gain of RM272 million in FY21 from the divestment of the group’s stake in Tesco Malaysia.

Excluding the one-off gain, full-year net profit was down 4.34% to RM1.1 billion, from RM1.15 billion, as a result of lower profit from the industrial and motors business in China, which was impacted by industry-wide contractions in volume for heavy equipment, inventory shortages and Covid-19 restrictions.

Meanwhile, the group’s cumulative revenue for FY22 fell 4.06% to RM42.5 billion, from RM44.3 billion for FY21.

Looking forward, Sime Darby expects its financial performance for FY23 to be better than that of FY22, due to expected one-off gains from the disposal of non-core assets pending completion.

In a separate statement, Sime Darby group chief executive officer Datuk Jeffri Salim Davidson said the group had successfully inked a deal to divest Weifang Port, signifying its exit from the logistics business, as it moves towards being a focused entity comprising two strong engines in automotive and heavy equipment.

“We believe that our skilled workforce, broad geographical footprint, and the support of the world’s best brands in heavy equipment and automotive, will help us to stay on the course.

“Sime Darby’s strong financial standing also allows us to take advantage of any opportunities that may come about to strengthen our core businesses, and build additional capabilities along the value chain,” Jeffri added.

At noon break on Wednesday, shares in Sime Darby were unchanged at RM2.30, valuing the group at RM15.66 billion.