Sime Darby Net Profit Surges To RM654 Mln In 3Q On One-off Land Sale

KUALA LUMPUR, May 25 (Bernama) -- Sime Darby Bhd's net profit for the third quarter financial year ended March 31, 2026 (3Q FY2026) surged to RM654.00 million from RM193.00 million in the same quarter last year.

The stronger performance was primarily driven by a one‑off gain of RM434 million from the disposal of land in Malaysia Vision Valley (MVV), a development corridor that encompasses the districts of Seremban and Port Dickson in Negeri Sembilan, said the group in a Bursa Malaysia filing today.

Quarterly revenue eased to RM15.75 billion against RM16.31 billion in 3Q FY2025. Excluding one-off items, core net profit for 3Q FY2026 increased by 55.6 per cent to RM263 million, as all three business divisions registered higher profits. 

"Our results this quarter reflect the continued resilience of our portfolio, even as we navigate a more complex operating environment. 

"Our core businesses of industrial equipment and automotive have held their ground against ongoing market pressures," said Sime Darby, adding that it remained disciplined in cost management, even in uncertain conditions. 

The UMW division recorded a profit before interest and tax of RM196 million, marginally higher than the same quarter in FY2025. While the automotive business registered a lower profit, the lubricants business saw improved results, mainly due to inventory adjustments in the previous corresponding period. 

For the nine months ended March 31, 2026 (9M FY2026), net profit improved by 10.9 per cent to RM1.44 billion compared with RM1.29 billion, and revenue was better at RM52.75 billion from RM52.30 billion previously.

Group chief executive officer Datuk Jeffri Salim Davidson said the company is also mindful of the role it plays in the broader economy and its responsibility as a flagbearer for Malaysia in international markets. 

“We are committed to strengthening the ecosystems we operate in to advance the national Government-linked Enterprises Activation and Reform Programme (GEAR-uP) agenda.

“This includes developing Malaysian talent, supporting local businesses and suppliers, and contributing to the development of globally competitive Malaysian enterprises,” he said. 

The GEAR-uP agenda is an initiative by the Ministry of Finance to drive national economic growth, reform the labour market, and support Bumiputera development.

On prospects, amid a challenging global economic outlook, with ongoing geopolitical tensions impacting supply chains and rising inflation risks, the group said business conditions are expected to remain subdued.

The motors sector continues to be impacted by slower consumer demand and heightened competition. 

Nevertheless, sales in the affordable vehicle segment in Malaysia remain resilient, it said.

For the industrial sector, the medium to long-term demand from the Australian mining industry for the group’s equipment and after-sales service is expected to remain strong.

"The board anticipates that the group’s core financial performance for the financial year ending June 30, 2026, will be consistent with that of the financial year 2025," it added.

-- BERNAMA