KUALA LUMPUR — May 25, 2016: Gains from the asset monetisation exercise helped Sime Darby to record a pre-tax profit of RM791.7 million and a net profit of RM663.5 million for its third quarter ended March 41.
One improved by 26 per cent and the 60 per cent compared to the previous corresponding quarter.
However the pre-tax profit for the nine-month period was RM1.7 billion and net profit RM1.3 billion, a decline of 13 per cent and 11 per cent against the previous results.
In a filing with Bursa Malaysia today, Sime Darby said the group continues to undertake deleveraging measures to improve its liquidity profile.
Operationally it continues to focus on productivity enhancements and innovative processes across the divisions. Recently, Sime Darby Plantation commenced its first large scale planting of Genome Select high yielding oil palms capable of delivering at least 15 per cent higher in oil yield.
“By 2023, the division will have enough genome materials to meet all of its Malaysian replanting requirements,” said president and group chief executive Tan Sri Mohd. Bakke Salleh.
Another company, the Star Media Group, recorded lower revenue and earnings for the first quarter to March 31.
“Key issues in the broader economy remains unresolved, as sentiment is impacted by the weak ringgit, poor commodity prices and rising cost of living. While the consumer sentiment index rebounded to 72.9 in the quarter, it remained below the threshold level of confidence,” said TA Securities in an analysis of the group’s results.
“We expect advertisers to remain cautious, with management forecasting a single digit decline in print adex for the full year.”
The group reported a net profit of RM15.5 million for Q1, a 68.7 per cent drop from a year earlier. The results were below the research house’s and consensus expectations at 12.5 per cent and 12.2 per cent respectively. Historically, first quarter profit constitutes 20 per cent of the full year bottomline.
Earnings disappointment stemmed largely from the print segment. Print adex fell 12.3 per cent year-on-year (YoY), as economic uncertainties and poor consumer sentiment continues to impact.
As costs held relatively stable, pre-tax profit for the print segment fell 38.9 per cent YoY to RM27.2 million. A similar fate was seen in its radio broadcasting and television division, with revenue declining 7.2 per cent YoY and 29.1per cent YoY respectively.
TA Securities said the group’s immediate priorities will include expanding its digital platform, while defending its print market share. On the digital front, its audience interest marketing allows advertising campaigns to target specific audience groups based on demographics, interests and behaviours.