August 18, 2021

Sime Darby Plantation Records Outstanding Profit Rate!

 Sime Darby Plantation Bhd (SDP) performed well with a net profit of over 63.2% in the second quarter ended June 30, 2021.

The surge has given SDP a profit margin of RM617 million compared to RM378 million achieved in the same period last year.

During the midday break, SDP's share price traded at RM3.92 with a plantation group value of RM27.11 billion.

According to Sime Darby, the profit was influenced by its revenue which jumped 37.2% to RM4.41 billion from RM3.22 billion in the previous quarter.

The increase in the price of raw palm oil and oil palm fruit, driven by the increase in the production of fresh fruit bunches, indirectly pushed the SDP to reap much higher income.

Meanwhile, SDP's net profit rose 39.4% to RM1.18 billion from RM846 million and its revenue also increased 29% to RM8.08 billion from RM6.26 billion last year.

SDP Group Managing Director, Mohamad Helmy Othman Basha explained that the plantation group has performed well despite the challenges that need to be faced.

Among them are the shortage of manpower as well as the Detained Release Order imposed by US Customs and Border Protection on Malaysian products.

He also noted that his operations in Indonesia and Papua New Guinea are expected to record higher production of fresh fruit bunches this year following better weather.