Sime Darby Property Berhad concluded its first financial quarter for 2023 with a 43% higher revenue of RM685.3 million, as compared to last year’s RM480.3 million. Profit before tax stood at RM97.9 million, achieving an impressive 18% Year-on-Year growth compared with Q1 FY2022 of RM83.2 million. Profit after tax and minority interest (“PATAMI”) strengthened by 17% to RM60.7 million against last year’s RM51.8 million.
The Group recorded sales totalling RM688.5 million. The industrial segment’s contribution surpassed residential as the key contributor with 55% or RM376.0 million of total sales achieved for the quarter under review. This achievement is attributed to the Group’s continuous success in capitalising on the industrial segment as a new avenue for growth while keeping residential sales strong.
Gross profit margin stood above the Group’s expectations at 30% with all lines of business, namely Property Development, Investment & Asset Management (“IAM”), and Leisure, registering profit at PBT level in Q1 FY2023.
“We are pleased to kick off Q1 FY2023 on a strong note. Indeed, our strategies and plans are yielding significant results, especially given our ability to meet the evolving needs of our homeowners and investors. Our ability to respond to market conditions and proactively seize opportunities has enabled us to post a solid performance for the quarter through a well-executed plan. It is also a testament to our strategy to expand the industrial segment, in line with our plan to diversify the product mix of our Engine 1 core business,” said Sime Darby Property’s Group Managing Director, Dato’ Azmir Merican.
The Group’s industrial offerings achieved an average take-up rate of 69% as at 7 May 2023, with contributions mainly from products located in Bandar Universiti Pagoh and the mixed industrial units in Nilai Impian.
Sime Darby Property’s sales achievement of RM688.5 million for the quarter encompassed 30% of the Group’s sales target of RM2.3 billion for FY2023. 73% of sales achieved of RM500.9 million are attributable to projects launched prior to FY2023.
The industrial segment’s contribution increased significantly to 55% of total quarterly sales as compared to 31% in Q1 FY2022, while residential landed and residential high-rise properties remained strong, accounting for 25% and 19% of products sold, respectively. The Group retained strong unbilled sales of RM3.6 billion as of 31 March 2023, ensuring revenue visibility for the next three years. Meanwhile, current bookings stood at RM1.6 billion as at 7 May 2023.
SDP anticipates the property market to remain steady overall in 2023, with indications of healthy demand for landed residential and industrial products. The recovery of the foreign labour market will augur well for the Group in sustaining its strong momentum throughout FY2023.
