Kuala Lumpur, 27 August 2025 – Amid persistent headwinds across its business segments, Sime Darby Berhad closed the financial year 2025 (FY25) with a net profit of RM2.06 billion, marking a 63% year-on-year rise in continuing operations thanks to strategic gains and consolidation from its UMW division.
On a core basis—excluding one-off gains—Sime Darby delivered a RM1.17 billion profit, reflecting underlying resilience despite challenging market conditions.
Financial Performance & Driver Breakdown
- Revenue for FY25 climbed modestly by 4.4%, reaching RM70.06 billion, up from RM67.13 billion in the prior year.
- Key contributors included:
- The UMW division, now fully consolidated, which enhanced scale and profitability.
- A gain from the disposal of Malaysia Vision Valley land, significantly bolstering earnings in the final quarter.
Despite these positives, Sime Darby faced persistent automotive market softness—particularly in China—due to intense competition from local brands. The group also contended with cost pressures in its Industrial division, particularly in Australasia, where currency headwinds and parts price adjustments impacted margins.
However, Tractors Malaysia emerged as a bright spot, benefiting from strong parts sales and healthy margins. Likewise, Sime Darby’s EV brand (BYD) gained momentum, especially in Singapore’s growing electric vehicle market.
In 4QFY25, Sime Darby’s quarterly net profit surged to RM763 million, substantially higher than the previous year, propelled by the MVV land disposal, stronger UMW contribution, and reduced borrowing costs. Excluding one-offs, the core quarterly profit stood at RM334 million—a 13% dip.
Strategic Outlook and Diverse Growth Engines
CEO Dato’ Jeffri Salim Davidson emphasized that despite macroeconomic volatility, robust cash flows, regional diversification, and cost discipline preserved Sime Darby’s financial stability.
Moreover, Sime Darby stands to benefit from Ringgit appreciation, which is expected to lower input costs for its Malaysia Motor and UMW divisions, driving margin expansion in upcoming periods.
Broader Implications for Its Multi-Division Strategy
- Strategic Consolidation: UMW’s full-year inclusion streamlined operations and elevated group performance.
- Geographic Resilience: Growth in Malaysia and Southeast Asia offset challenges in China and Australasia.
- Asset Monetization: Disposal of MVV land illustrates the effective unlocking of value from non-core assets.
- Cost Optimisation: Inventory reduction and enhanced cash flows reflect disciplined management.
- EV Potential: Emerging traction for BYD vehicles aligns with regional EV green transition strategies.
