The group said in a filing with Bursa Malaysia today that the higher net profit in Q2 FY2024 was due to the inclusion of the RM2 billion gain on the disposal of Ramsay Sime Darby Health Care.

Meanwhile, its revenue increased by 14.2% to RM17.72 billion during the quarter from RM15.52 billion previously.

Sime Darby declared an interim dividend of three sen per share and a special dividend of one sen per share for the financial year ending June 30, 2025.

Meanwhile, for the first half ended Dec 31, 2024 (H1 FY2025), net profit declined 62% to RM1.10 billion from RM2.87 billion previously, but revenue grew 22% to RM35.99 billion from RM29.50 billion.

In a separate statement, group CEO Jeffri Salim Davidson said while Sime Darby’s results are still good compared to last year, the market is becoming increasingly challenging.

“Our operations in China continue to be impacted by intense competition resulting in lower margins.

“Sime Darby teams have been diligently working to improve aftersales revenue, manage costs and improve inventory turnover resulting in higher operating cash flows,” he said.

On prospects, the group expects the core financial performance for the year ending June 30, 2025, to be about the same level as the previous year, despite the challenges in the motor industry.