Channel NewsAsia

Malaysia's Sime Darby Q3 profit up 23%

Malaysian conglomerate Sime Darby said on Thursday its net profit rose 23.3 per cent year-on-year in its third quarter January-March thanks to lower taxes and higher prices for palm oil, its key business.

KUALA LUMPUR: Malaysian conglomerate Sime Darby said on Thursday its net profit rose 23.3 per cent year-on-year in its third quarter January-March thanks to lower taxes and higher prices for palm oil, its key business.

The world's largest listed palm oil producer by acreage said net profit for its third quarter was 852.5 million ringgit ($264.4 million), compared with 691.2 million ringgit in the same period last year.

The group said this followed a lower effective tax rate and improved results from its plantation division as a better oil extraction rate and crude palm oil price realised offset lower production.

However, its other divisions -- industrial, motors, property and energy -- saw profits fall.

Revenue for the quarter stood at 10.3 billion ringgit, down 5.1 per cent year-on-year, however.

Group chief executive Bakke Salleh said the company was "on track" to achieve its targeted net profit of 2.8 billion ringgit for the year ending in June -- although that is 24 per cent down on the previous year.

"The resilient performance of the plantation division is testament to the initiatives that have been put in place to enhance operational efficiencies of the division," he said in a statement.

Overall net profit fell in the first quarter but rebounded in the second owing to the reduced taxes.

Tweet Photos, Videos and Update on this Story to  #cna