PETALING JAYA: In a strong start to the financial year, SD Guthrie Bhd, formerly known as Sime Darby Plantation Bhd, registered a net profit of RM567 million in the first quarter of its financial year ending Dec 31, 2025 (Q1’25), an increase of 169% from RM211 million in the corresponding period of 2024 (Q1’24).
The group’s profit before Interest and tax (PBIT) increased 118% to RM818 million year-on-year (y-o-y), underpinned by the robust performance of the upstream segment, which mitigated the decline in the downstream segment.
The upstream segment gained from higher y-o-y average realised crude palm oil (CPO) and palm kernel (PK) prices, as well as increased fresh fruit bunch (FFB) production.
The group’s realised CPO and PK prices averaged RM4,576 and RM3,342 per metric ton (MT) respectively, a corresponding increase of 18% and 72%. FFB production in the group’s Indonesian operations rose by 11% while production in Papua New Guinea and Solomon Islands improved by 10%, cushioning the 7% decline in the group’s Malaysian operations.
SD Guthrie International (SDGI), the group’s downstream arm, recorded a lower PBIT of RM76 million in Q1’25, representing a 37% y-o-y decline. SDGI’s performance was impacted by lower margins in the bulk and differentiated product segments, as well as weaker demand in its European and trading operations. This, however, was partially mitigated by better performance and higher profits from its Asia-Pacific operations.
Chairman,Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani said: “The uncertain operating environment, due to persistent inflationary pressures fuelled by volatile monetary and trade policies, as well as continuing geopolitical tensions, presents challenges that the group will navigate with caution over the short and medium terms. Despite this, I firmly believe the group has the necessary resilience and capability to face headwinds, just as we have in the past, underscoring the wealth of experience and unwavering commitment of our management and employees.”
Group managing director Datuk Mohamad Helmy Othman Basha said: “The group kicked off the year on a strong note, as reflected by our solid performance, driven by ongoing efforts to enhance operational excellence. As the year progresses, we are cognisant of prevailing economic and geopolitical conditions that may require strategic shifts to keep the group on track for a strong FY2025.”
On a positive note, he added that its industrial park growth pillar has attained a milestone with the recent signing of a tripartite agreement for the development of the group’s prime land in Bukit Pelandok, Negeri Sembilan, within the country’s Malaysia Vision Valley 2.0 growth area.
The company said the CPO price is expected to soften in the near term mainly due to a rebound in palm oil production as a result of improved weather conditions. Furthermore, demand from biodiesel blending is expected to weaken given the current low crude oil price environment. Whilst tariffs announced by the United States may have minimal direct impact on Malaysian CPO, it has created uncertainty and volatility of prices across all vegetable oil markets. In addition to price uncertainty, the potential disruption in the global supply chain could further lead to an overall increase in operational costs.
Amid rising market volatility, the group expects modest improvement in FFB production, driven by its ongoing operational excellence and yield-enhancing initiatives.
While remaining vigilant to potential regulatory changes and international trade developments that could impact broader macroeconomic conditions, SD Guthrie believes that there are opportunities to expand its downstream footprint. It remains committed to pursuing growth opportunities surrounding its new business pillars of industrial park development and renewable energy.
The group remains focused and resilient in delivering its performance in FY2025 and maintains a cautious outlook on the back of a challenging and unpredictable environment.
