Malaysian conglomerate Sime Darby Berhad has just unveiled its latest financial report, providing a snapshot of its performance for the third quarter ended 31 March 2025, and the cumulative nine months. While the quarterly figures show a dip in profitability compared to the previous year, the year-to-date performance for continuing operations paints a picture of growth and resilience. Shareholders also have something to cheer about with recent dividend announcements.
Let’s dive into the details and see what this report tells us about one of Malaysia’s leading diversified multinational corporations.
Overall Group Performance: A Mixed Bag for the Quarter, but Year-to-Date Growth
Quarterly Snapshot (31 March 2025 vs 31 March 2024)
Current Quarter (Q3 FY2025)
- Revenue: RM16,313 million
- Profit Before Tax: RM393 million
- Profit from Continuing Operations: RM276 million
- Profit Attributable to Owners of the Company: RM193 million
- Basic Earnings Per Share (from continuing operations): 2.8 sen
Previous Corresponding Quarter (Q3 FY2024)
- Revenue: RM18,835 million
- Profit Before Tax: RM602 million
- Profit from Continuing Operations: RM451 million
- Profit Attributable to Owners of the Company: RM340 million
- Basic Earnings Per Share (from continuing operations): 5.1 sen
For the third quarter ended 31 March 2025, Sime Darby Berhad reported a decline in its key financial metrics compared to the same period last year. Revenue saw a 13.4% decrease, dropping to RM16,313 million from RM18,835 million. This led to a 34.7% fall in Profit Before Tax to RM393 million, and a 38.8% reduction in Profit from Continuing Operations to RM276 million. The Profit Attributable to Owners of the Company also saw a significant 43.2% decrease to RM193 million, translating to a Basic Earnings Per Share from continuing operations of 2.8 sen, down 45.1% from 5.1 sen.
This quarterly dip was primarily driven by lower profits across all core divisions, which we will delve into shortly.
Year-to-Date Performance (Nine Months Ended 31 March 2025 vs 31 March 2024)
Current Nine Months (3Q FY2025)
- Revenue: RM52,303 million
- Profit Before Tax: RM2,005 million
- Profit from Continuing Operations: RM1,558 million
- Profit Attributable to Owners of the Company: RM1,298 million
- Basic Earnings Per Share (from continuing operations): 18.9 sen
Previous Corresponding Nine Months (3Q FY2024)
- Revenue: RM48,339 million
- Profit Before Tax: RM1,783 million
- Profit from Continuing Operations: RM1,338 million
- Profit Attributable to Owners of the Company: RM3,217 million
- Basic Earnings Per Share (from continuing operations): 17.2 sen
In contrast to the quarterly performance, the cumulative nine-month period paints a more positive picture for continuing operations. Revenue increased by 8.2% to RM52,303 million. Profit Before Tax climbed 12.5% to RM2,005 million, and Profit from Continuing Operations rose 16.4% to RM1,558 million. Basic Earnings Per Share from continuing operations also saw a healthy 9.9% increase to 18.9 sen.
It’s important to note that the overall Profit Attributable to Owners of the Company for the nine-month period decreased by 59.7% to RM1,298 million. This significant drop is largely due to the previous corresponding period benefiting from a substantial one-off gain of RM2,007 million from the disposal of Ramsay Sime Darby Health Care, which was classified under discontinued operations. Excluding this one-off event, the underlying performance from continuing operations demonstrates growth.
Segmental Performance: A Closer Look
Understanding the Group’s performance requires a look at its key business segments:
Industrial Division
The Industrial division faced headwinds, with Profit Before Interest and Tax (PBIT) decreasing by 38.4% to RM221 million for the quarter. For the nine-month period, PBIT was lower by 15.6% at RM901 million. This was primarily attributed to
