Sime Darby Berhad Registers a Pre-Tax Profit of RM674.9 million for 1Q FY2014/2015Sime Darby Berhad Registers a Pre-Tax Profit of RM674.9 million for 1Q FY2014/2015Sime Darby Berhad Registers a Pre-Tax Profit of RM674.9 million for 1Q FY2014/2015Sime Darby Berhad Registers a Pre-Tax Profit of RM674.9 million for 1Q FY2014/2015
  • Who We Are
    • About Us
    • Sime Darby Plantation Worldwide
    • Our Journey
    • Our Products
    • Our Leaders
    • Our Awards and Recognitions
    • Corporate Governance
  • What We Do
    • Our Strategy
    • Our Businesses
  • Innovation
    • Overview
    • GenomeSelect™
    • Precision Agriculture
    • Automating Plantations
    • Eco-Solutions
    • Food Science
    • Innovation Challenge
  • Sustainability
    • Overview
    • Climate Action
    • Human Rights
    • Responsible Sourcing
    • Reports, Policies and Statements
  • Our People
    • Growing Together
    • Opportunities
    • What Do Our People Say?
    • Connect With Us
  • Investor Relations
    • Overview
    • Stock and Shareholder Information
    • Financial Information
    • Operational Information
    • Investor Resources
    • Analyst Coverage
    • ESG Index and Credit Ratings
    • Bursa Announcements
    • Annual Reports and Presentations
Procurement
#SDPnetzero

Sime Darby Berhad Registers a Pre-Tax Profit of RM674.9 million for 1Q FY2014/2015

  • Home
  • Press Releases and Public Updates
  • Sime Darby Berhad Registers a Pre-Tax Profit of RM674.9 million for 1Q FY2014/2015
28 November 2014

Sime Darby Berhad Registers a Pre-Tax Profit of RM674.9 million for 1Q FY2014/2015

The Group sets a Key Performance Indicator (KPI) Net Earnings target of RM2.5 billion and a Return on Average Shareholders’ Equity target of 8.5% for FY2014/15

Kuala Lumpur, 28 November 2014 – Sime Darby Berhad recorded a pre-tax profit of RM674.9 million and a net profit of RM500.7 million for the first quarter ended 30 September 2014 (1Q FY2014/15), representing a slight increase of 1 percent and 2 percent respectively, compared to the same period in the last financial year.

The Group posted a resilient financial performance in the quarter under review despite the highly challenging operating environment. The Plantation Division was the biggest contributor to profit on the back of improvements in fresh fruit bunches (FFB) production and oil extraction rate (OER). The Motors and Property Divisions also achieved improved earnings due to better vehicle sales in Australia, New Zealand and Vietnam and higher profit from recently launched property development projects, respectively.

“In the first three months of the current financial year, we continued to face significant challenges to the Group, particularly lower average crude palm oil (CPO) price realised and falling coal prices. However, our ability to drive operational improvements across the Group and undertake stringent capital management has allowed us to achieve a satisfactory performance. The strength and depth of the Group’s diversified portfolio remains crucial in withstanding the ever changing market conditions,” said Tan Sri Dato’ Seri Mohd Bakke Salleh, Sime Darby’s President and Group Chief Executive.

1Q FY2014/15 versus 1Q FY2013/14 (Year-on-Year Comparison)

The Plantation Division achieved a profit before interest and tax (PBIT) of RM289.3 million in the period under review compared to RM254.6 million in the same period last financial year. The PBIT increase of 14 percent was attributable to improved profit from the Upstream segment, which achieved higher sales volume and lower operating cost in addition to the improvement in operational efficiencies. This helped to offset the lower average CPO price realised of RM2,187 per tonne in 1Q FY2014/15 compared to RM2,331 per tonne in 1Q FY2013/14. The Group’s FFB production was higher at 2.52 million tonnes in the first quarter of the current financial year compared to 2.47 million tonnes in the first quarter of the previous financial year. Indonesian FFB production improved by 11 percent YoY. However, Malaysian operations registered lower FFB production by 2 percent YoY, for the quarter under review. Overall OER also improved by 0.26 percentage point from 21.39% in the first quarter of FY2013/14 to 21.65% in the first quarter of FY2014/15.

The midstream and downstream operations recorded a loss of RM18.9 million for the current quarter compared to a profit of RM11.0 million previously. The loss was largely due to unfavourable sales mix from the company’s refineries in Europe and Indonesia.

The Industrial Division recorded a PBIT of RM190.1 million in 1Q FY2014/15, a drop of 42 percent compared to RM327.2 million in 1Q FY2013/14. Cost cutting pressure from key mining customers as a response to persistently low coal prices and resultant lower margins continue to adversely impact the Australasian operations. Consequently, the results in Australia have been negatively impacted by lower equipment deliveries and lower product support sales. However, China operations posted a YoY PBIT improvement of 22 percent due to better margin realisation from engine deliveries. In Malaysia, despite the softening market conditions, profit contribution for the period under review rose by 24 percent to RM27 million as a result of the various cost saving measures and project finalisation.

The Motors Division’s PBIT increased by 3 percent from RM106.6 million in the first quarter of the last financial year to RM110.0 million in the first quarter of the current financial year. This improvement was mainly driven by higher PBIT from Australia and New Zealand, which increased 7 fold to RM21.4 million, on the back of contributions from the newly acquired BMW operations in Brisbane and also the Trucks operations in New Zealand. BMW operations in Vietnam continued its commendable performance in its third quarter of operations, post-acquisition. China/HK and Malaysia, however, reported a decline of 37 percent and 12 percent respectively. The China/HK operations continue to face margin pressures due to stiff competition in the luxury segment while the Malaysian operations are faced with supply issues and the tightening of consumer credit.

For the quarter under review, the Property Division posted a PBIT of RM137.1 million, an increase of more than 100 percent compared to RM65.5 million in the same quarter last financial year. The improved performance was partly the result of a gain on the disposal of a 9.9% equity interest in Eastern & Oriental Berhad amounting to RM55.5 million. Excluding this gain, the Division achieved a PBIT increase of 25 percent in view of higher profits from the Elmina East project and contributions from the construction works at the Pagoh Education Hub. The Division has unbilled sales of RM2.2 billion as at 30th September 2014.

The Energy & Utilities Division recorded a PBIT of RM21.7 million for 1Q FY2014/15. The increase of 67 percent from RM13.0 million in 1Q FY2013/14 was largely due to higher profit from the ports and water operations in China, reflecting the positive impact of an increase in throughput and higher average tariff achieved.

Headline Key Performance Indicators (KPIs)

The Group also announced its KPIs for the financial year ending 30 June 2015, with a Net Earnings target of RM2.5 billion and a Return on Average Shareholders’ Equity target of 8.5 percent.

Share

Related posts

3 February 2023

Sime Darby Plantation’s palm oil exports to United States given greenlight after review by US Customs


Read more
8 December 2022

Sime Darby Plantation announces 2050 net-zero commitment with clear roadmap


Read more
29 November 2022

Sime Darby Plantation, Intan Hebat Baru and Wild Asia Join Forces to Raise Palm Oil Small Producers’ Standards


Read more
WHO WE ARE

About Us
Sime Darby Plantation Worldwide
Our Journey
Our Products
Our Leaders
Our Awards and Recognitions
Corporate Governance

INNOVATION

Overview
GenomeSelect™
Precision Agriculture
Automating Plantations
Eco-Solutions
Food Science
Innovation Challenge

SUSTAINABILITY

Overview
Climate Action
Human Rights
Responsible Sourcing
Reports, Policies and Statements

INVESTOR RELATIONS

Overview
Stock and Shareholder Information
Financial Information
Operational Information
Investor Resources
Analyst Coverage
ESG Index and Credit Ratings
Bursa Announcements
Annual Reports and Presentations

WHAT WE DO

Our Strategy
Our Businesses

Web Design Company

MEDIA

Press Releases and Public Updates
Resource Centre
Notices

OUR PEOPLE

Growing Together
Opportunities
What Do Our People Say?
Connect With Us

CONTACT US

© Copyright Sime Darby Plantation Berhad.
All Rights Reserved.

Terms of Use Important Notice Personal Data Protection Act 2010

    #SDPnetzero



      This website uses cookies in order to offer you the most relevant information. Please accept cookies for optimal performance.

      Read More



      Accept

      Ignore


      Manage consent

      Privacy Overview

      This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
      Necessary
      Always Enabled
      Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
      CookieDurationDescription
      cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
      cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
      cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
      cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
      cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
      viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
      Functional
      Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
      Performance
      Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
      Analytics
      Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
      Advertisement
      Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
      Others
      Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
      SAVE & ACCEPT
    • How we use Cookies

      A cookie is a small file which asks permission to be placed on your computer’s hard drive. Once you agree, the file is added and the cookie helps analyse web traffic or lets you know when you visit a particular site. Cookies allow web applications to respond to you as an individual. The web application can tailor its operations to your needs, likes and dislikes by gathering and remembering information about your preferences.

      We use traffic log cookies to identify which pages are being used. This helps us analyse data about web page traffic and improve our website in order to tailor it to customer needs. We only use this information for statistical analysis purposes and then the data is removed from the system.

      A cookie in no way gives us access to your computer or any information about you, other than the data you choose to share with us.

      You can choose to accept or decline cookies. Most web browsers automatically accept cookies, but you can usually modify your browser setting to decline cookies if you prefer. This may prevent you from taking full advantage of the website.