Kuala lumpur: Sime Darby Bhd recorded a lower net profit of RM2.06 billion for the financial year ended June 30, 2025 (FY2025), marking a decrease of 37.7 percent from the RM3.31 billion achieved the previous year. This decline is attributed to the absence of a one-off RM2 billion gain from the sale of its healthcare business.
According to BERNAMA News Agency, revenue for the group increased by 4.4 percent, reaching RM70.06 billion from the previous RM67.13 billion, as stated in a Bursa Malaysia filing. Net profit from continuing operations saw a significant rise of 63 percent to RM2.05 billion, primarily due to the inclusion of Sime UMW's full-year results and the profit from the disposal of MVV land.
Excluding one-off items, the group reported a core net profit of RM1.17 billion for FY2025. Datuk Jeffri Salim Davidson, Sime Darby group chief executive officer, highlighted the challenges faced during the year, including slower growth and increased competition in China's automotive sector. However, he noted the positive trend of rising electric vehicle (EV) sales in Singapore, which has benefitted its leading EV brand, BYD.
Tractors Malaysia, a division of the group that retails and maintains Caterpillar industrial equipment, recorded improved profitability due to higher parts sales with better margins and data center projects. For the fourth quarter (4Q) ended June 30, 2025, Sime Darby reported a net profit of RM763 million, up from RM89 million in the preceding period, although revenue fell to RM17.76 billion from RM18.79 billion previously. The profit increase was mainly due to a gain from the sale of MVV land, higher contributions from UMW, and reduced borrowing costs.
Jeffri emphasized the group's proactive measures to navigate the challenging business environment, including optimizing inventory, reducing costs, streamlining operations, improving operating cash flow, and strengthening the balance sheet. Despite ongoing headwinds, he expressed confidence in maintaining the group's strong market position and driving sustainable growth.
Sime Darby declared a second interim dividend of 10 sen per share for 4Q FY2025, bringing the total dividend payout for FY2025 to 14 sen per share or RM954 million.