KUALA LUMPUR: Sime Darby Bhd's net profit jumped 31.8 per cent to RM278 million in the fourth quarter ended June 30, 2022 from RM211 million a year ago.
Group revenue for the quarter eased 3.9 per cent to RM10.85 billion from RM11.3 billion.
The net profit for the full year, however, fell 22.6 per cent to RM1.1 billion in from the RM1.43 billion recorded in FY21, on the back of a 4.1 per cent drop in revenue to RM42.5 billion from RM44.3 billion.
In a statement today, Sime Darby said its earnings were affected by lower profits from its industrial and motors business in China.
The businesses were affected by industry-wide contraction in volume for heavy equipment, inventory shortages and Covid-19 restrictions.
"We reported over a billion ringgit in profits this year in spite of the multiple challenges brought on by a combination of supply chain disruptions and higher operating costs due to labour issues," Sime Darby group chief executive officer Datuk Jeffri Salim Davidson said.
He said the motors division had a tough year, especially in China.
"Malaysia was a standout performer despite two months of movement restrictions in the financial year, posting more than a 50 per cent increase in profits from operations.
"This was thanks to our BMW and Porsche dealerships as well as our assembly operations.
"The feather in our cap for FY22 was the opening of our assembly plant for Porsche in Kulim, the first outside of Europe, which began delivering locally assembled Porsche Cayennes in March this year.
"The response from customers has been very encouraging," he said.
Jeffri said for the industrial division, strong commodity prices had driven equipment demand in the group's key market of Australia.
"However, higher overhead costs ate into margins. In China, a slowdown in construction activity led to further contraction in the heavy equipment market," he said.
Nevertheless, he said the group remained focused on its non-core rationalisation plan.
"We successfully signed the deal to divest Weifang Port in July which signifies our complete exit from the logistics business.
"Moving forward, we will be a focused entity with two strong engines in automotive and heavy equipment," he added.
The group declared a second interim dividend of 7.5 sen per share for Q4 FY22.
This brings the total dividend payout for FY22 to 11.5 sen a share or RM783 million, representing a payout of 71 per cent of net profit.