KUALA LUMPUR--Sime Darby Bhd. (4197.KU), the world's largest listed palm oil producer by acreage, said Tuesday first-quarter net profit fell 7.4%, dragged down by its mainstay plantation business and healthcare division.
Net profit for the three months ended Sept. 30 was 990.3 million ringgit ($324 million), compared with MYR1.07 billion in the same quarter a year earlier, it said in a statement to the Malaysian stock exchange.
This was the company's second consecutive quarter of net profit decline.
Revenue, however, rose 7.0% on-year to MYR11.83 billion from MYR11.06 billion.
Sime Darby said it is targeting a net profit of MYR3.2 billion for the financial year ending June 30. This compares with a MYR4.15 billion net profit recorded during the previous fiscal year.
"While the overall economic environment will be challenging, the group is positive that the strength and diversity of the group's six core businesses and its strategic focus will place the group in a strong position to withstand the economic headwinds," Sime Darby said.
Apart from plantation and healthcare, Sime Darby is also involved in property development, industrial equipment, automotive and port operations.
By Jason Ng