KUALA LUMPUR, Malaysia--Malaysian plantations-to-automotive conglomerate Sime Darby Bhd. (4197.KU) said a 53.4% drop in fourth-quarter net profit from a year ago, weighed down mainly by impairments and provisions across its business units.
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Sime Darby, whose plantations arm is the world's largest palm oil producer by land size, reported net profit in the April-June period fell to 571 million ringgit ($133.52 million) from MYR1.23 billion, the company said Friday.
The weaker results came on the back of year-over-year declines in profit before interest and tax at its plantations, property and logistics businesses in the latest quarter. In its statement, the company also cited a loss before interest and tax at its industrial business.
Revenue rose 6.1% to MYR8.2 billion from MYR7.73 billion a year ago, Sime Darby said in its statement and stock-exchange filing.
Sime Darby President and group Chief Executive Mohd Bakke Salleh told reporters Friday afternoon that the impairments and provisions were incurred so as to provide a clean slate for its plantation and property business units ahead of listing on the local exchange.
"(We are) looking forward to start with a bang" on the listings," he said during the earnings briefing, adding that Sime Darby aims to list the two units around the end of November.
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Earlier this year, Sime Darby unveiled plans to create three standalone businesses that will be pure plays in the plantation, property, and trading and logistics sectors, respectively, in an effort to unlock shareholder value.
The plantation and property pure plays, in particular, will be spun off and listed on Bursa Malaysia as separate entities. The trading and logistics businesses will remain under Sime Darby, which will retain its listed status.
In a separate stock-exchange filing Friday, Sime Darby said it would distribute shares in the plantation and property units to its shareholders. For every one Sime Darby share, shareholders will receive one share each of Sime Darby Plantation and Sime Darby Property, according to the filing.
Shares of Sime Darby ended 1.1% lower Friday at MYR9.13 after the earnings release. The stock has risen around 13% year to date.
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(END) Dow Jones Newswires
August 25, 2017 07:07 ET (11:07 GMT)