QUARTERLY REPORT
On the consolidated results for the third quarter ended 30 September 2023
The Directors are pleased to announce the following:
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
Amounts in RM million unless otherwise stated
Quarter ended | Three quarters ended | |||||||
30 September | % | 30 September | % | |||||
Note | 2023 | 2022 | +/(-) | 2023 | 2022 | +/(-) | ||
Revenue | A8, A9 | 4,774 | 5,392 | (11) | 13,148 | 15,360 | (14) | |
Operating expenses | (4,040) | (4,964) | (11,890) | (13,348) | ||||
Other operating income | 942 | 67 | 1,330 | 607 | ||||
Other (losses)/gains | (31) | 123 | (122) | 137 | ||||
Operating profit | B5, A9 | 1,645 | 618 | >100 | 2,466 | 2,756 | (11) | |
Share of results of joint ventures | 16 | - | * | 24 | 59 | |||
Share of results of associates | - | * | 4 | 1 | 13 | |||
Profit before interest and tax | A9 | 1,661 | 622 | >100 | 2,491 | 2,828 | (12) | |
Finance income | 10 | 2 | 17 | 8 | ||||
Finance costs | (50) | (39) | (151) | (87) | ||||
Profit before tax | 1,621 | 585 | >100 | 2,357 | 2,749 | (14) | ||
Tax expense | B6 | (362) | (154) | (568) | (676) | |||
Profit for the financial period | 1,259 | 431 | >100 | 1,789 | 2,073 | (14) |
Profit for the financial period attributable to:
- equity holders of the Company | 1,211 | 396 | >100 | 1,660 | 1,926 | (14) | |
- Perpetual Sukuk | 31 | 31 | 93 | 93 | |||
- non-controlling interests | 17 | 4 | 36 | 54 | |||
1,259 | 431 | >100 | 1,789 | 2,073 | (14) | ||
Basic earnings per share attributable to | |||||||
equity holders of the Company: | |||||||
Basic (sen) | B12 | 17.5 | 5.7 | >100 | 24.0 | 27.8 | (14) |
The unaudited condensed consolidated statement of profit or loss should be read in conjunction with the accompanying explanatory notes and the audited financial statements for the financial year ended 31 December 2022.
1
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Amounts in RM million unless otherwise stated
Quarter ended | Three quarters ended | |||||
30 September | % | 30 September | % | |||
2023 | 2022 | +/(-) | 2023 | 2022 | +/(-) | |
Profit for the financial period | 1,259 | 431 | >100 | 1,789 | 2,073 | (14) |
Other comprehensive income/(loss):
Items that will be reclassified subsequently to profit or loss:
Currency translation differences (loss)/gains: | |||||||
- subsidiaries | (145) | 324 | 765 | 626 | |||
- joint ventures and associates | (10) | (8) | 17 | (22) | |||
Cash flow hedge | |||||||
- changes in fair value | 52 | 99 | 109 | 12 | |||
- transfers (to)/from profit or loss | (28) | 64 | (78) | 360 | |||
Tax expense relating to components | |||||||
of other comprehensive (loss)/income | (19) | (39) | (8) | (96) | |||
(150) | 440 | 805 | 880 | ||||
Items that will be not reclassified subsequently | |||||||
to profit or loss: | |||||||
Actuarial gain/(loss) on defined benefit pension plans | 2 | (1) | 11 | (2) | |||
Investments at fair value through other | |||||||
comprehensive income ("FVOCI"): | |||||||
- changes in fair value | ‒ | * | ‒ | ‒ * | ‒ | ||
Share of other comprehensive income of joint | |||||||
ventures | ‒ | ‒ | 1 | ‒ | |||
Tax (expense)/credit relating to components | |||||||
of other comprehensive income/(loss) | ‒ | * | ‒ | * | (2) | ‒ | * |
2 | (1) | 10 | (2) | ||||
Total other comprehensive (loss)/income | |||||||
for the financial period | (148) | 439 | 815 | 878 | |||
Total comprehensive income | |||||||
for the financial period | 1,111 | 870 | 2,604 | 2,951 | |||
Total comprehensive income | |||||||
for the financial period attributable to: | |||||||
- equity holders of the Company | 1,067 | 833 | 28 | 2,449 | 2,803 | (13) | |
- Perpetual Sukuk | 31 | 31 | - | 93 | 93 | - | |
- non-controlling interests | 13 | 6 | >100 | 62 | 55 | 13 | |
Total | 1,111 | 870 | 28 | 2,604 | 2,951 | (12) |
* Less than 1 million
The unaudited condensed consolidated statement of comprehensive income should be read in conjunction with the accompanying explanatory notes and the audited financial statements for the financial year ended 31 December 2022.
2
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Amounts in RM million unless otherwise stated
Unaudited | Audited | ||
As at | As at | ||
30 September | 31 December | ||
Note | 2023 | 2022 | |
Non-current assets | |||
Property, plant and equipment | 18,921 | 17,800 | |
Investment properties | 8 | 11 | |
Right-of-use assets | 2,092 | 2,008 | |
Joint ventures | 409 | 368 | |
Associates | 50 | 57 | |
Intangible assets | 3,104 | 2,947 | |
Investments at fair value through other comprehensive income ("FVOCI") | 22 | 22 | |
Deferred tax assets | 439 | 496 | |
Tax recoverable | 157 | 164 | |
Trade and other receivables | 59 | 35 | |
25,261 | 23,908 | ||
Current assets | |||
Inventories | 3,144 | 2,778 | |
Biological assets | 201 | 180 | |
Trade and other receivables | 2,316 | 2,603 | |
Tax recoverable | 406 | 235 | |
Amounts due from related parties | ‒ * | 1 | |
Derivatives | B9 | 85 | 157 |
Bank balances, deposits and cash | 702 | 635 | |
6,854 | 6,589 | ||
Non-current assets held for sale | (1) | 157 | 651 |
Total assets | A9 | 32,272 | 31,148 |
Equity | |||
Share capital | 1,634 | 1,634 | |
Reserves | 16,539 | 14,733 | |
Attributable to equity holders of the Company | 18,173 | 16,367 | |
Perpetual Sukuk | 2,200 | 2,231 | |
Non-controlling interests | 442 | 418 | |
Total equity | 20,815 | 19,016 |
3
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED) Amounts in RM million unless otherwise stated
Unaudited | Audited | ||
As at | As at | ||
30 September | 31 December | ||
Note | 2023 | 2022 | |
Non-current liabilities | |||
Retirement benefits | 169 | 158 | |
Deferred income | ‒ * | ‒ * | |
Deferred tax liabilities | 2,686 | 2,738 | |
Borrowings | B8 | 3,685 | 3,633 |
Lease liabilities | 196 | 147 | |
Trade and other payables | 50 | 43 | |
6,786 | 6,719 | ||
Current liabilities | |||
Trade and other payables | 2,065 | 2,444 | |
Contract liabilities | 32 | 35 | |
Amounts due to related parties | 10 | 10 | |
Retirement benefits | 18 | 15 | |
Lease liabilities | 27 | 25 | |
Tax payable | 299 | 219 | |
Derivatives | B9 | 18 | 62 |
Borrowings | B8 | 1,965 | 2,464 |
Dividend payable | 225 | ‒ | |
4,659 | 5,274 | ||
Liabilities directly associated with non-current assets held for sale | (2) | 12 | 139 |
Total liabilities | 11,457 | 12,132 | |
Total equity and liabilities | 32,272 | 31,148 | |
Net assets per share attributable to equity holders | |||
of the Company (RM) | 2.63 | 2.37 |
Note:
- Non-currentassets held for sale Non-current assets held for sale
- property, plant and equipment | 7 | 20 | |
Disposal group held for sale | |||
- property, plant and equipment | 112 | 250 | |
- right of use assets | 1 | 28 | |
- tax assets | 16 | 107 | |
- receivables | 6 | 182 | |
- bank balances | ‒ | 11 | |
- other assets | 15 | 53 | |
157 | 651 | ||
(2) | Liabilities directly associated with non-current assets | ||
held for sale | |||
Disposal group held for sale | |||
- payables | 8 | 120 | |
- retirement benefits | 4 | 12 | |
- tax liabilities | ‒ | 5 | |
- other liabilities | ‒ * | 2 | |
12 | 139 | ||
* Less than 1 million |
The unaudited condensed consolidated statement of financial position should be read in conjunction with the accompanying explanatory notes and the audited financial statements for the financial year ended 31 December 2022.
4
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Amounts in RM million unless otherwise stated
Attributable to equity holders of the Company | |||||||||||
Investments | Non- | ||||||||||
Share | Capital | Hedging | Merger | at FVOCI | Exchange | Retained | Perpetual | controlling | Total | ||
Three quarters ended 30 September 2023 | capital | reserve | reserve | reserve | reserve | reserve | profits | Total | Sukuk | interests | equity |
At 1 January 2023 | 1,634 | 9 | 10 | (18) | 20 | 716 | 13,996 | 16,367 | 2,231 | 418 | 19,016 |
Profit for the financial period | ‒ | ‒ | ‒ | ‒ | ‒ | ‒ | 1,660 | 1,660 | 93 | 36 | 1,789 |
Other comprehensive income | |||||||||||
for the financial period | ‒ | ‒ | 21 | ‒ | ‒ | 781 | 10 | 812 | ‒ | 26 | 838 |
Disposal of subsidiaries | ‒ | ‒ | ‒ | ‒ | ‒ | (23) | ‒ | (23) | ‒ | ‒ | (23) |
Total comprehensive income | |||||||||||
for the financial period | ‒ | ‒ | 21 | ‒ | ‒ | 758 | 1,670 | 2,449 | 93 | 62 | 2,604 |
Transactions with equity holders: | |||||||||||
Dividends | ‒ | ‒ | ‒ | ‒ | ‒ | ‒ | (643) | (643) | ‒ | (38) | (681) |
Distribution to Perpetual Sukuk holders | ‒ | ‒ | ‒ | ‒ | ‒ | ‒ | ‒ | ‒ | (124) | ‒ | (124) |
At 30 September 2023 | 1,634 | 9 | 31 | (18) | 20 | 1,474 | 15,023 | 18,173 | 2,200 | 442 | 20,815 |
Attributable to equity holders of the Company | |||||||||||
Investments | Non- | ||||||||||
Share | Capital | Hedging | Merger | at FVOCI | Exchange | Retained | Perpetual | controlling | Total | ||
Three quarters ended 30 September 2022 | capital | reserve | reserve | reserve | reserve | reserve | profits | Total | Sukuk | interests | equity |
At 1 January 2022 | 1,634 | 9 | (126) | (18) | 27 | 645 | 13,017 | 15,188 | 2,231 | 437 | 17,856 |
Profit for the financial period | ‒ | ‒ | ‒ | ‒ | ‒ | ‒ | 1,926 | 1,926 | 93 | 54 | 2,073 |
Other comprehensive income/(loss) | |||||||||||
for the financial period | ‒ | ‒ | 276 | ‒ | ‒ | 605 | (4) | 877 | ‒ | 1 | 878 |
Total comprehensive income | |||||||||||
for the financial period | ‒ | ‒ | 276 | ‒ | ‒ | 605 | 1,922 | 2,803 | 93 | 55 | 2,951 |
Transactions with equity holders: | |||||||||||
Dividends | ‒ | ‒ | ‒ | ‒ | ‒ | ‒ | (1,548) | (1,548) | ‒ | (56) | (1,604) |
Distribution to Perpetual Sukuk holders | ‒ | ‒ | ‒ | ‒ | ‒ | ‒ | ‒ | ‒ | (125) | ‒ | (125) |
At 30 September 2022 | 1,634 | 9 | 150 | (18) | 27 | 1,250 | 13,391 | 16,443 | 2,199 | 436 | 19,078 |
The unaudited condensed consolidated statement of changes in equity should be read in conjunction with the accompanying explanatory notes and the audited financial statements for the financial year ended 31 December 2022.
5
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Amounts in RM million unless otherwise stated
Three quarters ended | ||||
30 September | ||||
Note | 2023 | 2022 | ||
Cash flows from operating activities | ||||
Profit for the financial period | 1,789 | 2,073 | ||
Adjustments for: | ||||
Share of results of joint ventures and associates | (25) | (72) | ||
Finance income | (17) | (8) | ||
Finance costs | 151 | 87 | ||
Gain on disposal of: | ||||
- property, plant and equipment | B5 | (11) | (15) | |
- non-current assets held for sale | B5 | (1,093) | (276) | |
Depreciation and amortisation | B5 | 1,056 | 1,015 | |
Unrealised fair value losses/(gains) | ||||
- commodities contracts | B5 | 48 | (252) | |
- forward foreign exchange contracts | B5 | 10 | 64 | |
Unrealised foreign exchange losses | B5 | 45 | 51 | |
Tax expense | B6 | 568 | 676 | |
Fair value changes on biological assets | (14) | 105 | ||
Retirement benefits | 36 | 23 | ||
Net of impairment/(reversal) of: | ||||
- property, plant and equipment | B5 | 17 | 4 | |
- right-of-use assets | B5 | ‒ | ‒ * | |
- advances for plasma plantation projects | B5 | 1 | ‒ | |
- trade and other receivables | B5 | (1) | 6 | |
Write off of: | ||||
- inventories | B5 | 1 | ‒ | |
- trade and other receivables | B5 | ‒ | * | ‒ |
- property, plant and equipment | B5 | 9 | 18 | |
- intangible assets | B5 | 1 | 1 | |
Write down of inventories | B5 | 19 | 85 | |
Dividend income from FVOCI | (3) | (9) | ||
2,587 | 3,576 | |||
Changes in working capital: | ||||
Inventories | (245) | (1,042) | ||
Trade and other receivables | 498 | 400 | ||
Trade and other payables | (502) | 287 | ||
Intercompany and related party balances | ‒ | * | (10) | |
Cash generated from operations | 2,338 | 3,211 | ||
Tax paid | (689) | (926) | ||
Retirement benefits paid | (28) | (23) | ||
Net cash generated from operating activities | 1,621 | 2,262 | ||
Cash flows from investing activities | ||||
Finance income received | 17 | 8 | ||
Purchase of: | ||||
- property, plant and equipment | (1,390) | (1,097) | ||
- intangibles assets | (9) | (11) | ||
Advances for plasma plantation projects | (1) | (3) | ||
Repayment of advances for plasma plantation projects | ‒ | 49 | ||
Proceeds from sale of: | ||||
- property, plant and equipment | 12 | 19 | ||
- non-current assets held for sale | 1,387 | 285 | ||
Dividend received from: | ||||
- other investments | 3 | 9 | ||
- joint venture | ‒ | 3 | ||
- an associate | 9 | 4 | ||
Net cash used in investing activities | 28 | (734) |
6
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED) Amounts in RM million unless otherwise stated
Three quarters ended | ||
30 September | ||
Note | 2023 | 2022 |
Cash flows from financing activities | ||
Distribution to Perpetual Sukuk holders | (124) | (125) |
Finance costs paid | (247) | (120) |
Loans raised | 3,720 | 2,935 |
Loan repayments | (4,429) | (3,024) |
Repayment of lease liabilities | (37) | (21) |
Dividends paid to shareholders | (418) | (856) |
Dividends paid to non-controlling interests of subsidiaries | (35) | (48) |
Net cash used in financing activities | (1,570) | (1,259) |
Net changes in cash and cash equivalents during the financial period | 79 | 269 |
Foreign exchange difference | (12) | 1 |
Cash and cash equivalents at beginning of the period | 635 | 665 |
Cash and cash equivalents at end of the period | 702 | 935 |
* Less than 1 million
The unaudited condensed consolidated statement of cash flows should be read in conjunction with the accompanying explanatory notes and the audited financial statements for the financial year ended 31 December 2022.
7
EXPLANATORY NOTES ON THE QUARTERLY REPORT - 30 SEPTEMBER 2023
Amounts in RM million unless otherwise stated
A. EXPLANATORY NOTES PURSUANT TO MFRS 134
A1. Basis of preparation
This interim financial report is prepared in accordance with the requirements of paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad and complies with the requirements of the Malaysian Financial Reporting Standard ("MFRS") 134 "Interim Financial Reporting" and other MFRSs issued by the Malaysian Accounting Standards Board ("MASB"). The interim financial report is unaudited and should be read in conjunction with the audited consolidated financial statements for the financial year ended 31 December 2022.
A2. Accounting policies
The accounting policies and presentation adopted for this interim financial report are consistent with those adopted for the audited consolidated financial statements for the financial year ended 31 December 2022 except as described below.
- Accounting pronouncements that are effective and have been adopted in preparing these financial statements:
- Amendments that are effective on or after 1 January 2023
- Amendments to MFRS 101, MFRS Practice Statement 2 and MFRS 108 on disclosure of accounting policies and definition of accounting estimates
- Amendments to MFRS 112 on "Deferred Tax related to Assets and Liabilities arising from a Single Transaction"
The adoption of these amendments does not have any significant impact on the current period or any prior periods and is not likely to affect future periods.
- Amendments to MFRS 112 on International Tax Reform - Pillar Two Model Rules
As provided in the amendments to MFRS 112 issued in May 2023, the Group applies the mandatory exception, whereby the Group does not need to recognise or disclose information about deferred tax assets and liabilities related to Pillar Two income taxes.
- Accounting pronouncements that are not yet effective and have not been early adopted in preparing these financial statements:
- Amendments that are effective on or after 1 January 2024
- Amendments to MFRS 101 on "Classification of Liabilities as Current or Non-current" ('2020 amendments') and "Non-current Liabilities with Covenants" ('2022 amendments')
- Amendments to MFRS 16 on Lease Liability in a Sale and Leaseback
- Amendments to MFRS 107 and MFRS 7 on Supplier Finance Arrangements
The amendments shall be applied retrospectively.
A3. Seasonal and cyclical factors
The Group's operations are not materially affected by seasonal or cyclical factors except for the fresh fruit bunch production which may be affected by the vagaries of weather and cropping patterns.
A4. Unusual items affecting assets, liabilities, equity, net income or cash flows
Except as disclosed in Notes B1 and B2, there were no material unusual items affecting the Group's assets, liabilities, equity, net income or cash flows during the quarter under review.
A5. Material changes in estimates
There were no material effects from estimates made in prior periods or previous year.
A6. Debt and equity securities
There were no issuances, cancellations, repurchases, resale and repayments of debt and equity securities during the quarter under review.
8
EXPLANATORY NOTES ON THE QUARTERLY REPORT - 30 SEPTEMBER 2023
Amounts in RM million unless otherwise stated
-
EXPLANATORY NOTES PURSUANT TO MFRS 134 (CONTINUED)
A7. Dividends paid
No dividend was paid during the quarter under review.
A8. Revenue | |||
The Group derived the following types of revenue: | |||
Three quarters ended | |||
30 September | |||
Note | 2023 | 2022 | |
Revenue from contracts with customers | A8(a) | 13,124 | 15,333 |
Revenue from other sources | A8(b) | 24 | 27 |
Total revenue | 13,148 | 15,360 | |
(a) Disaggregation of revenue from contracts with customers | |||
Upstream | |||
- Malaysia | 719 | 395 | |
- Indonesia | 755 | 662 | |
- Papua New Guinea and Solomon Islands ("PNG/SI") | 134 | 95 | |
Downstream | 11,410 | 14,100 | |
Other operations | 106 | 81 | |
13,124 | 15,333 | ||
Sales of palm based products, other refined edible oils, rubber, | |||
sugar, beef and other agricultural products | 12,850 | 15,042 | |
Freight services | 231 | 185 | |
Tolling services | 43 | 106 | |
13,124 | 15,333 | ||
Timing of revenue recognition | |||
- at point in time | 12,850 | 15,042 | |
- over time | 274 | 291 | |
13,124 | 15,333 | ||
(b) Revenue from other sources | |||
Dividend (gross) received/receivable from investments | 3 | 9 | |
Rental income | 21 | 18 | |
24 | 27 |
- Revenue expected to be recognised in relation to unsatisfied performance obligations
The following table shows the revenue expected to be recognised in the future relating to performance obligations that were unsatisfied (or partially unsatisfied) as at 30 September 2023:
Expected timing of recognition | |
During the quarter ending | |
31 December 2023 | |
Freight income | 32 |
9
EXPLANATORY NOTES ON THE QUARTERLY REPORT - 30 SEPTEMBER 2023
Amounts in RM million unless otherwise stated
-
EXPLANATORY NOTES PURSUANT TO MFRS 134 (CONTINUED)
A9. Segment information
Inter- | |||||||
Upstream | Upstream | Upstream | Other | segment | |||
Malaysia | Indonesia | PNG/SI | Downstream | operations | elimination | Total | |
Three quarters ended 30 September 2023 | |||||||
Segment revenue: | |||||||
External sales | 741 | 755 | 134 | 11,412 | 106 | ‒ | 13,148 |
Inter-segment sales | 2,160 | 1,049 | 2,234 | 255 | 502 | (6,200) | ‒ |
Total revenue | 2,901 | 1,804 | 2,368 | 11,667 | 608 | (6,200) | 13,148 |
Segment results: | |||||||
Operating profit: | |||||||
- recurring activities | 182 | 480 | 293 | 393 | 46 | ‒ | 1,394 |
- non-recurring transactions | 794 | 278 | ‒ | ‒ | ‒ | ‒ | 1,072 |
Share of results of joint ventures and associates | ‒ | ‒ | ‒ | 24 | 1 | ‒ | 25 |
Profit before interest and tax | 976 | 758 | 293 | 417 | 47 | ‒ | 2,491 |
Inter- | |||||||
Upstream | Upstream | Upstream | Other | segment | |||
Malaysia | Indonesia | PNG/SI | Downstream | operations | elimination | Total | |
Three quarters ended 30 September 2022 | |||||||
Segment revenue: | |||||||
External sales | 419 | 662 | 95 | 14,103 | 81 | ‒ | 15,360 |
Inter-segment sales | 2,987 | 1,055 | 2,263 | 72 | 383 | (6,760) | ‒ |
Total revenue | 3,406 | 1,717 | 2,358 | 14,175 | 464 | (6,760) | 15,360 |
Segment results: | |||||||
Operating profit: | |||||||
- recurring activities | 145 | 624 | 937 | 711 | 46 | ‒ | 2,463 |
- non-recurring transactions | 273 | ‒ | ‒ | ‒ | 20 | ‒ | 293 |
Share of results of joint ventures and associates | ‒ | ‒ | ‒ | 61 | 11 | ‒ | 72 |
Profit before interest and tax | 418 | 624 | 937 | 772 | 77 | ‒ | 2,828 |
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Sime Darby Plantation Bhd published this content on 21 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2023 06:59:08 UTC.