Sime Reports RM2 billion in Net Profit for FY2025

Net profit from the Group’s continuing operations increased by 63 percent to RM2.05 billion. This was largely due to the inclusion of Sime UMW’s full year results and a gain from the disposal of MVV land. Excluding one-off items, the Group reported a core net profit of RM1.17 billion for FY2025.

The Group’s revenue rose by 4.4 per cent to RM70.1 billion in FY2025, as compared to RM67.1 billion in FY2024.

“This has been a rather challenging year, with multiple headwinds across key markets. In China, we are dealing with slower growth and tougher competition in the automotive sector.

On the bright side, EV sales have been on a rise in Singapore, benefitting its number one EV brand, BYD, which we represent. Tractors Malaysia which retails and maintains Caterpillar industrial equipment has delivered improved profitability, driven by higher parts sales with better margins and data centre projects. Although our Industrial Australasia operations have been impacted by a parts price reduction and a weaker Australian dollar this year, it is still the division’s biggest contributor and is well positioned to benefit from Australia’s growing resources industry. With Sime UMW, we have been able to tap into the strength of the two leading automotive brands in Malaysia; Perodua and Toyota.

“Despite tough market conditions, our performance has remained stable, demonstrating the resilience of our portfolio and the strength in our geographical diversity, said Dato’ Jeffri Salim Davidson, Sime’s Group Chief Executive Officer.

For the Group’s fourth quarter ended 30 June 2025, net profit was RM763 million, a significant increase from the same quarter in the previous financial year. This was mainly due to a gain from the sale of MVV land, higher contributions from UMW and lower borrowing costs. Excluding one-off items, the Group’s core net profit for the quarter was 13 per cent lower at RM334 million.

The Industrial division’s results for the quarter saw a 6.5 percent increase in PBIT to RM425 million as a result of higher contributions from the Southeast Asian operations. Meanwhile profit from the Australasian unit remained relatively consistent as the corresponding period last year.

The Motors division’s PBIT for the quarter was similar to the previous year, as absence of dividend income and lower profit from Malaysia were offset by the one-off provisions and impairments in the previous corresponding quarter.

UMW division proved to be a strong contributor to the Group, with PBIT surging 63 per cent to RM279 million.

“The seven years since the demerger have seen the Group deliver steady growth. With the business environment now more challenging, we have taken proactive steps to optimise inventory, reduce costs, streamline operations, improve operating cash flow and strengthen our balance sheet. While there continue to be headwinds, we are in a solid position to maintain our strong market position and drive sustainable growth of the Group,” Dato’ Jeffri concluded.

Sime Darby declared a second interim dividend of 10 sen per share for Q4 FY2025. This brings the total dividend pay-out for FY2025 to 14 sen a share or RM954 million.