27/08/2015 (Bernama) - Sime Darby Bhd pre-tax profit for the financial year ended June 30, 2015 (FY15) fell to RM3 billion from RM3.96 billion a year ago.

Revenue declined to RM43.73 billion from RM43.91 billion previously, it said in a filing to Bursa Malaysia here today.

President/Group Chief Executive, Tan Sri Mohd Bakke Salleh, said the group continued to be adversely impacted by bearish commodity prices and volatile market conditions during the period under review.

"Crude palm oil (CPO) and coal prices have been on a downward trend and the challenging business environment has resulted in subdued demand in most of our business activities, thus culminating in a weaker set of earnings," he said.

Mohd Bakke said despite these tough challenges, the group has accomplished good progress on both the operational and strategic fronts.

He said the post-merger integration following the recent acquisition of New Britain Palm Oil Ltd was proceeding smoothly.

"The challenging business climate is expected to continue amid an environment of economic stagnation, particularly in the markets where the group operates.

"The weak outlook for commodity prices, coupled with cautious consumer spending and stricter monetary policies, will be some of the major headwinds that the group is expected to face," he said.

The group, he said, remained resolute in its focus to implement strategic cost-saving initiatives on the back of stricter capital management.