BUSINESS

SIME DARBY PROPERTY NET PROFIT JUMPS TO RM407.91 MLN IN FY2023 ON ROBUST HOME SALES

23/02/2024 11:59 AM

KUALA LUMPUR, Feb 23 (Bernama) -- Sime Darby Property Bhd’s net profit jumped 29 per cent to RM407.91 million for the financial year ended Dec 31, 2023 (FY2023) from RM315.84 million in FY2022.

Revenue increased 25 per cent to RM3.44 billion from RM2.74 billion previously.

For the fourth quarter (4Q) of 2023, the group’s net profit rose to RM131.26 million from RM103.15 million from a year ago while revenue increased to RM1.01 billion from RM956.90 million.

The group noted in a statement today that it had concluded FY2023 with its highest post-2017 demerger revenue and operating profit, reaching RM3.4 billion and RM606.4 million, respectively. 

Sime Darby Property said this marked its second consecutive year of exceptional results following its commendable FY2022 record of RM436.2 million operating profit whereby the group achieved RM3.3 billion in sales, surpassing its RM2.7 billion sales target.

It noted that the increase in revenue and profit was primarily attributed to the robust sales performance and higher site progress in major townships within the property development segment, supported by contributions from non-core land monetisation activities.

The property development segment, it said, contributed 94 per cent of total revenue, along with a 33 per cent year-on-year (y-o-y) increase in pretax profit.

In the investment and asset management (IAM) segment, KL East Mall’s 90 per cent occupancy rate contributed to the segment’s revenue of RM107.8 million, with pretax profit recorded at RM15.8 million while the leisure segment’s revenue grew by 11 per cent y-o-y to RM93.8 million.

Group managing director Datuk Azmir Merican said the exceptional performance last year, coming on the heels of FY 2022’s results, certainly demonstrated the group’s operational and financial competencies against the backdrop of an uncertain operating environment in 2023 as a result of supply chain constraints, foreign exchange movements and labour issues.

“We set high targets and are pleased to have far exceeded these expectations. Our results reflect our execution capability and equally important, our SHIFT25 targets continue to progress well and remain on track,” he said.

Moving forward, the group said it sees a positive 2024, evidenced by rising sales volume, new property launches, successful completions as well as positive government policies and incentives.

The group has also announced a RM3 billion sales target and launches worth RM3.9 billion in gross development value (GDV) for FY2024.

“Sime Darby Property is expanding its retail and placemaking components with the second quarter opening of its second wholly-owned mall, the Elmina Lakeside Mall in the City of Elmina.

“The group is optimistic about growth opportunities in this sector to broaden recurring income streams in the long term,” it said.

Sime Darby Property declared a second single-tier dividend of 1.5 sen per share in the fourth quarter, bringing total dividends for FY 2023 to 2.5 sen per share, amounting to RM170 million.

-- BERNAMA


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