Training-Sime Darby Plantation 3Q FY2023 Net Profit Triples to RM1.2 billion

• Upstream Malaysia’s fresh fruit bunch production surges by 38%
• Special interim dividend of 5.70 sen per share declared in October 2023

Petaling Jaya, 24 November 2023 - Sime Darby Plantation Berhad registered a net profit of RM1.2 billion in the third quarter of its financial year ending 31 December 2023 (3Q FY2023), a threefold increase from RM396 million recorded in 3Q FY2022. The quarter’s strong performance bolstered the Group’s net profits for the nine-month period ended 30 September 2023 (9M FY2023) to RM1.7 billion.

The Group’s upstream operations registered an impressive improvement in 3Q FY2023, led by the strong recovery of the Malaysian operations, which saw a 38% year-on-year (YoY) increase in fresh fruit bunch (FFB) production, due to having more harvesters and intensive rehabilitation efforts. The Malaysian production volume achieved in 3Q FY2023 was higher by 43% quarter-on-quarter (QoQ) and also represented 43% of the total Malaysian production for 9M FY2023.

Key Highlights

• During the period under review, the Group recorded a non-recurring PBIT of RM876 million comprising the following:
  1. Disposal of interests in two Indonesian subsidiaries for a total gain of RM278 million;
  2. Gain from land sale in Malaysia of RM607 million; and
  3. Impairment charge of RM9 million in respect to the Group’s rubber plantation in Malaysia.

Chairman, Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani said:

“Despite a challenging start to 2023, I am delighted that the Group is back on track to deliver a satisfactory performance this year. I am also thrilled with the strategic partnerships that the Group has established recently in China and India, two of our major export countries. We are looking forward to unlocking more value with these collaborations as ongoing improvement efforts will ensure that we are able to close the second half of the year on a much stronger footing.”

Group Managing Director, Datuk Mohamad Helmy Othman Basha said,

“After the setbacks suffered between 2020 and mid-2023, we are seeing the results of months of rehabilitation work with an increased workforce successfully turning around our Upstream Malaysia operations in 3Q FY2023. We expect to achieve the full complement of harvesters for Sabah and Sarawak by end of the year, and by mid-2024, these harvesters will acquire sufficient skills to be more productive. We will also continue to localise our workforce as we are no longer recruiting new foreign workers for non-harvesting work. Whilst the rehabilitation work continues and is expected to be completed by mid-2024, I’m pleased to report that our labour shortage crisis is now behind us. We remain steadfast in our focus to reduce long-term dependence on manual labour through mechanisation, automation and digitalisation."

DIVIDEND:

The Group declared a special interim dividend of 5.70 sen per share for FY2023 on 27 October 2023.