Sime Darby's Q2 net profit more than doubles to RM633 mln

Revenue also firmed to RM11.24 billion from RM10.2 billion previously, it said in a filing with Bursa Malaysia.

The group attributed the 124.5 per cent rise in its net profit to the one-off gain of RM272 million from the disposal of its 30 per cent stake in Tesco Malaysia during the quarter.

"Excluding this gain, the group's net profit was 28 per cent higher, mainly due to the strong performance of the motors division," it said.

It said motors division's profit soared by 97.2 per cent to RM282 million during the quarter, mainly due to the strong performance of the Greater China region, where its profit before interest and tax more than doubled from RM90 million to RM186 million in Q2 2021 with higher revenue and margins.

Meanwhile, its logistics division's profit decreased by 57.1 per cent to RM3 million mainly due to lower port throughput arising from the increase in shipping freight charges and environmental restrictions.

"As for the healthcare division, the lower profit in the current quarter was mainly due to lower patient volumes in Malaysia following the resurgence of the coronavirus outbreak during the quarter," it said.

On prospects, Sime Darby said the rebound in motor vehicle sales has generally been strong in most countries, especially in China where consumer demand for luxury goods has been relatively resilient.

"Despite this, there is still the risk of disruptions to supply chains that may limit the availability of certain new models.

"In addition, a resurgence in COVID-19 in certain countries may adversely impact vehicle sales as a result of movement restrictions being implemented to contain the spread of the virus," it added.

In a separate statement, its group chief executive officer Datuk Jeffri Salim Davidson said the company has been fortunate that the demand for luxury cars has remained relatively robust during Q2 2021.

"Whilst we are well-positioned to ride the wave of demand for luxury cars, we remain mindful of the risks from the on-going COVID-19 pandemic, as well as the slowing demand for our products and services from the coal mining segment in Australia as a result of the restrictions on coal imports by China," he said.