SD Guthrie Records Stellar First Half With a 71% Increase in Net Profit to RM1.07 billion

•    Upstream operations maintain upward momentum, doubling profits year-on-year
•    Industrial development business pillar expands promisingly with key strategic partnerships announced 

Petaling Jaya, 7 August 2025 – SD Guthrie Berhad (Guthrie or the Group), registered a net profit of RM1.07 billion for the six months ended 30 June 2025 (1H FY2025), an impressive 71% year-on-year (YoY) increase from the RM626 million net profit recorded in 1H FY2024. For 2Q FY2025, Guthrie recorded a 22% rise in net profit to RM505 million from RM415 million in the previous corresponding period. Guthrie’s continued strong performance demonstrates resilience in its operations, primarily the Upstream segment which recorded a twofold increase in profits in 1H FY2025. 

During the period, the Upstream operations benefited from higher YoY average realised crude palm oil (CPO) and palm kernel (PK) prices which rose by 3% and 50% YoY to RM4,146 and RM3,247 per metric tonne (MT), respectively. Furthermore, the Group’s fresh fruit bunch (FFB) production increased by 4%, as all segments registered higher FFB production.

The Group’s Downstream segment, SD Guthrie International (SDGI), registered a 44% YoY decrease in PBIT in 2Q FY2025 to RM126 million from RM225 million in 2Q FY2024 as its business landscape remained challenging. SDGI’s operations across Asia Pacific and Europe were impacted by lower demand and tighter margins. However, encouraging performance was achieved in Oceania which recorded commendable operating profits with higher sales volumes and margins.

Key Highlights

Chairman, Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani said:

“Moving into second half of FY2025, the global economic and operating environment remains volatile and unpredictable. As such, the meaningful progress made in our operational excellence initiatives, and the steady uptick in activities within the new Industrial Development segment and continuous progress made in the Renewables sector, will help to future proof the Group.

I am pleased with Guthrie's momentum and am confident that our disciplined approach to driving measurable results will deliver long-term and sustainable value to shareholders.” 

Group Managing Director, Datuk Mohamad Helmy Othman Basha said:

“The Group’s performance in this period bears testament to our robust strategy and disciplined execution, as we continue to prioritise operational excellence. Even as our core business segments regain momentum, the new and expanded strategic focus to pursue broader growth initiatives is starting to take shape.

As we expand into our new pillars on the back of the national development agenda, we are committed to ensuring the collaborations on our land are well-strategised and take into consideration the development potential of the area and also the impact to surrounding communities. The recent Memorandum of Understanding (MoU) with Permodalan Negeri Selangor Berhad (PNSB) to co-develop a Food Security and Edu-Tech Hub on Carey Island is a prime example of our commitment. Here the focus is not only to stimulate economic growth on the island, but also to ensure the existing community and rich heritage are protected. Guthrie values opportunities to be involved in such meaningful developments.” 

OUTLOOK FOR FY2025:

CPO price is expected to remain volatile in the second half of 2025 as the industry enters into its peak output cycle, supported by improved weather conditions, softer biodiesel demand amidst the low crude oil price environment, and the ongoing global macroeconomic uncertainty. Whilst the price discount of palm oil relative to other vegetable oils is likely to support stronger demand from key markets, persistent macroeconomic headwinds, coupled with uncertainties in the global trade environment following the US’ revised tariff measures, are adding further volatility to the overall operating environment.

The Group anticipates improvement in FFB production in the second half of the year, supported by better operating conditions as well as productivity enhancement efforts across our operations in Malaysia, Indonesia, Papua New Guinea and Solomon Islands. The Group’s diversified geographical presence also provides it with greater flexibility in managing evolving trade policies and local tax regulations. Additionally, the Group’s focus on its new business pillars has gained traction and is expected to enhance the Group’s performance. This reflects our proactive approach to long-term growth and the strong momentum we are carrying into the second half of the year.

The Group remains committed to delivering resilient and competitive performance supported by strategic execution and proactive measures in navigating a dynamic market environment.