Sime Darby Plantation renews commitment to integrity

Petaling Jaya, 7 February 2024 - Sime Darby Plantation Berhad (SDP) renewed its unwavering commitment to integrity at the 2023 Integrity Summit, held at its headquarters in Ara Damansara today. The summit, streamed live across SDP's operations globally, brought together key stakeholders, industry experts, and thought leaders to engage in meaningful discussions on critical topics such as ethics, transparency, and corporate responsibility in today's dynamic business environment.

“In the fast-paced and ever-evolving landscape of global business, organisations may be tempted to compromise on ethical standards. However, for us, it is exactly in such times that, our commitment to integrity comes to the fore. We firmly believe that upholding our core values, even when faced with difficult decisions, is not a choice; it is an essential part of who we are and what we stand for”, said SDP’s Group Managing Director, Datuk Mohamad Helmy Othman Basha.

The summit which featured a forum discussion titled 'Integrity Begins with You’, included two distinguished panel speakers, Tan Sri Abu Kassim Mohamed, Former Chief Commissioner of the Malaysian Anti-Corruption Commission, and Dato’ Sri Akhbar Satar, President of the Malaysia Association of Certified Fraud Examiners and Former Member of the Anti-Corruption Advisory Board. The session was moderated by Pushpan Murugiah, CEO of the Center to Combat Corruption and Cronyism, also known as C4 Center.

“Integrity is a lifelong commitment. Its significance extends far beyond the corporate realm into both personal and professional spheres alike. I encourage everyone to translate the principles of integrity and governance into their daily lives”, added Mohamad Helmy.

SDP has in place readily available channels of communication for all its employees to address any concerns related to ethics and integrity. The company emphasises that it stands shoulder to shoulder with employees who choose the path of integrity, irrespective of their role within the organisation.

Throughout 2023, SDP successfully executed 27 Integrity Day events across its global operations, spanning Malaysia, Indonesia, Thailand, South Africa, the Netherlands, United Kingdom, Papua New Guinea and Solomon Islands. These events have served as platforms for the company to educate, inspire and engage with its employees, while nurturing them into integrity advocates who would carry forth the message of ethical conduct.

The 2023 Integrity Summit underscored SDP's resolute determination to champion a culture firmly grounded in moral values. On the same day, the 2024 Integrity Campaign was launched by SDP’s Chairman, Tan Sri Dr. Nik Norzrul Thani Nik Hassan Thani, marking the beginning of an anticipated year filled with engaging initiatives and activities.

• Upstream Malaysia’s crop production increased 45% YoY
• Sime Darby Oils doubled its profit in 4Q FY2023

Petaling Jaya, 22 February 2024 - Sime Darby Plantation Berhad registered a net profit of RM200 million in the fourth quarter of the financial year ended 31 December 2023 (4Q FY2023) bringing its full year net profits for FY2023 to RM1.86 billion.

The Group’s Malaysian upstream operations registered a 45% year-on-year (YoY) increase in Fresh Fruit Bunch (FFB) production as a result of intensive rehabilitation efforts, with the steady return of foreign harvesters to Malaysia. This strong performance has led to a 15% and 6% YoY increase in overall FFB production for the Group in 4Q FY2023 and FY2023 respectively.

The higher overall FFB production helped mitigate the impact of lower average realised crude palm oil (CPO) and palm kernel (PK) prices recorded in 4Q FY2023. CPO prices declined by 8% YoY to an average of RM3,688 per metric ton (MT) as compared to RM4,005 per MT, whilst average realised PK prices declined marginally by 1% YoY to RM1,742 per MT from RM1,756 per MT in 4Q FY2022.

Sime Darby Oils (SDO), the Group’s downstream operations, recorded a two-fold increase in its profit before interest and tax (PBIT) to RM183 million in 4Q FY2023, an increase from RM89 million recorded the previous corresponding quarter. SDO’s strong performance was supported by its European operations which mitigated the impact of lower margins in its Asia Pacific operations.

Key Highlights

• In 4Q FY2023, the Group’s non-recurring PBIT of RM55 million was mainly from the disposal of land in Malaysia.

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

“This is a commendable performance in yet another challenging year, a testimony to the tremendous effort put in to turn around the Malaysian upstream operations. The team’s dedicated and concerted efforts have yielded significant improvements in the Group’s FFB production, allowing us to close FY2023 with a respectable set of results. I am confident that with its renewed commitment to excellence, the Group will continue to do well in 2024."

Group Managing Director, Datuk Mohamad Helmy Othman Basha said,

“I am extremely proud of our achievements in 2023; over and above the successful turnaround of our Malaysian upstream operations, we became the first palm oil company in the world to have its net-zero targets approved by the Science Based Targets initiative (SBTi). These achievements are evidence of our continued commitment to our key strategic pillars for growth and long-term success, sustainability, operational excellence and innovation. We believe these focus areas are essential to future proof our business and help us to effectively manoeuvre through a challenging operating environment."

OUTLOOK FOR FY2024:

CPO demand is expected to remain steady in the longer term though seasonally high stockpiles in key destination countries may impact short-term demand. The Group is also cognisant of continued geopolitical risks and predictions of moderating global economic growth, which may impact demand.

Unpredictable weather conditions are likely to raise supply concerns for vegetable oils globally. This in turn is anticipated to provide favourable support for CPO prices in 2024.

With the improved labour situation and rehabilitation of its Malaysian upstream operations, the Group is optimistic that its FFB production growth will sustain in 2024. Whilst it continues its operational improvement efforts, the Group also actively seeks strategic collaborative opportunities to advocate for positive change in the industry.

Barring any unforeseen circumstances, the Group remains positive as it looks ahead to another satisfactory performance in FY2024.

DIVIDEND:

The Group has declared a final dividend of 6.05 sen per share, which together with the interim dividend of 3.25 sen per share and special interim dividend of 5.70 sen per share, translates to a total single tier dividend of 15.00 sen per share for FY2023.

Petaling Jaya, 5 March 2024 - Sime Darby Plantation Berhad (SD Plantation or Company) achieved another significant milestone as the world’s largest sustainable palm oil producer when it was accorded the Platinum Award at the Integrity, Governance, and Anti-Corruption Awards (AIGA) 2023. The Company won the event’s highest accolade out of the top five recipients of the Highest Gold Award from the night. The AIGA is organised by the Malaysian Institute of Integrity (IIM) and serves as a prestigious platform to honour both the public and private sectors in Malaysia for their outstanding efforts in promoting integrity.

SD Plantation’s Chief Integrity & Assurance Officer, Suhailah Mohamed Abdulla said the award underscores the Company’s commitment to upholding the highest standards of integrity and governance and its dedication to fostering a culture of integrity and transparency throughout its global operations.

“This is truly an outstanding culmination of Sime Darby Plantation’s collective efforts in raising awareness on integrity and governance, especially throughout 2023. We are indeed humbled to have received this important acknowledgment as we continue to implement the highest ethical standards and drive positive change, not just within our organisation but our value chain,” said Suhailah.

SD Plantation’s Platinum win at AIGA 2023 acknowledges the Company’s exceptional commitment to cultivating and embedding integrity across all facets of its operations. In particular, it recognises the Company’s Integrity Day initiative, in which 27 roadshows were held across its global operations, its workers' grievance channel 'Suara Kami' (available in seven languages), SD Plantation’s comprehensive Whistleblowing Dashboard and Reporting system, as well as its efforts in raising awareness of its Code of Business Conduct.

Suhailah leads SD Plantation’s Group Integrity and Governance Assurance department that has been instrumental in driving integrity awareness and campaigns throughout the Company. “This accolade holds a special significance for Sime Darby Plantation as it follows the resounding success of our annual global Integrity Summit, held recently on 7 February 2024,” she added.

A total of 154 entries were received at AIGA 2023, representing 95 public agencies and 59 private organisations from across the country.

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Petaling Jaya, 30 April 2024 - Sime Darby Plantation Berhad (SD Plantation or the Company) has announced its intention to change its brand name to SD Guthrie Berhad. This strategic decision was announced to Bursa Malaysia earlier today, notifying the public of the company’s intention to seek shareholders' approval for the new brand at an extraordinary general meeting (EGM). The notice of EGM will be issued in due course.

“This is a significant milestone in our 200-year history and comes at a pivotal time for us as an organisation,” said SD Plantation’s Chairman, Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani. “We have established clear leadership in our industry on many fronts and have grown our downstream business into a significant revenue contributor. As a landowner in Malaysia, we are also cognisant of the many opportunities to create value for our shareholders.”

The decision to rebrand was made after several months of discussions with experts in the fields of law, intellectual property and brand identity. All necessary legal and regulatory approvals for the rebranding will be obtained.

“We believe it is the prerogative of any large company with ambitions for sustainable growth, to own and control its brand and identity. With this change to SD Guthrie, we will be able to assert full control over our identity and explore opportunities that will best serve the interests of our shareholders,” said SD Plantation’s Group Managing Director, Datuk Mohamad Helmy Othman Basha.

The “Sime Darby” brand is owned and controlled by Sime Darby Berhad, the former parent company of SD Plantation. Since the demerger and listing of SD Plantation six and a half years ago, it has operated under a licence, subject to the terms of a brand and trademark licensing agreement, paying an annual fee for the use of the “Sime Darby” brand. This situation imposes significant constraints on SD Plantation’s ability to make its own strategic decisions for the brand and business.

In proposing “SD Guthrie” as the new brand, the Company aims to present itself as a fully integrated player in the industry, with interests and potential beyond upstream plantations. Additionally, the brand SD Guthrie is very much a part of the history of the company, paying homage to its recent past as part of the Sime Darby group, as well as its origins more than 200 years ago with Alexander Guthrie. The original Guthrie story was one of ambition, enterprise, and resilience, of both its early founders and its subsequent Malaysian leaders, attributes which continue to resonate in the company today.

SD Plantation started out as a trading house in Singapore in 1821, as Guthrie & Co. Over the years, through multiple corporate exercises, it grew into one of the largest plantation companies in the world.

“To us however, our commitments to sustainability, innovation and quality are as important as our scale, reach and capacity. This is why we continue to explore new technologies and invest in continuous improvement. We understand the changing needs of the world, and we are looking forward to an exciting future,” Mohamad Helmy said.

The Company shall make further announcements when there are any material developments.

Tekan sini untuk versi Bahasa Inggeris.

Petaling Jaya, 30 April 2024 - Sime Darby Plantation Berhad (SD Plantation atau Syarikat) telah mengumumkan hasrat untuk menukar nama jenama Syarikat tersebut kepada SD Guthrie Berhad. Keputusan strategik tersebut diumumkan kepada Bursa Malaysia pada hari ini, bagi memaklumkan hasrat Syarikat berkenaan untuk mendapatkan kelulusan jenama baru tersebut daripada pemegang saham melalui satu mesyuarat agung luar biasa (EGM). Notis EGM akan dikeluarkan dalam masa terdekat.

“Ini adalah satu perkembangan yang amat bermakna dalam sejarah 200 tahun syarikat ini, satu detik yang begitu penting bagi kami sebagai sebuah organisasi,” kata Pengerusi SD Plantation, Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani. “Dari pelbagai sudut yang berbeza, pencapaian dan kepimpinan syarikat ini dalam industri sawit cukup jelas, termasuklah dalam mengembangkan perniagaan hiliran kami menjadi satu penyumbang hasil utama. Sebagai pemilik hartanah di Malaysia, terdapat pelbagai lagi peluang untuk kami mencipta nilai bagi kepentingan para pemegang saham.”

Keputusan penjenamaan semula SD Plantation dibuat berikutan perbincangan selama beberapa bulan yang lalu dengan pakar-pakar dalam bidang undang-undang, harta intelek dan identiti jenama. Syarikat tersebut akan memastikan agar semua kelulusan yang diperlukan bagi menyempurnakan penjenamaan semula tersebut dilaksanakan mengikut undang-undang dan peraturan sedia ada.

“Kami percaya adalah menjadi hak prerogatif setiap syarikat besar yang bercita-cita mencipta pembangunan mampan, untuk memiliki dan menyelia jenama dan identitinya sendiri. Melalui penjenamaan semula kepada SD Guthrie, syarikat ini akan memperoleh kuasa penuh, bukan sahaja dalam menentukan halatuju identiti syarikat, malahan juga dalam meneroka pelbagai peluang demi kepentingan pemegang saham kami,” kata Pengarah Urusan Kumpulan SD Plantation, Datuk Mohamad Helmy Othman Basha.

Jenama “Sime Darby” dimiliki dan diselia oleh Sime Darby Berhad, bekas syarikat induk SD Plantation. Sejak pengasingan dan penyenaraian SD Plantation lebih enam tahun yang lalu, syarikat tersebut telah beroperasi di bawah sistem pelesenan, tertakluk kepada syarat perjanjian pelesenan jenama dan tanda dagangan, serta membayar yuran tahunan untuk penggunaan jenama "Sime Darby". Keadaan ini merupakan satu kekangan yang besar terhadap keupayaan SD Plantation untuk membuat sebarang keputusan strategik berhubung kepentingan jenama dan perniagaannya.

Dengan mencadangkan “SD Guthrie” sebagai jenama baharu, Syarikat tersebut berhasrat untuk tampil sebagai perniagaan bersepadu sepenuhnya dalam industri sawit, di samping mengembangkan potensi perniagaannya melangkaui perladangan huluan. Jenama SD Guthrie, memberi penghormatan kepada sejarah Syarikat tersebut yang pada masa lalu pernah menjadi sebahagian daripada kumpulan Sime Darby, serta susur galurnya lebih 200 tahun melalui salah seorang pengasas bernama Alexander Guthrie. Kisah penubuhan Guthrie adalah sejarah yang penuh dengan gambaran cita-cita, daya usaha, dan daya tahan pengasasnya serta para pemimpin Malaysia yang mengambil alih kepimpinan syarikat tersebut - nilai-nilai yang terus diterapkan sehingga ke hari ini.

SD Plantation bermula sebagai sebuah syarikat perdagangan di Singapura pada tahun 1821 dan dikenali sebagai Guthrie & Co. SD Plantation telah berkembang menjadi salah satu syarikat perladangan terbesar dunia, melalui pelbagai usaha pembangunan korporat.

“Komitmen syarikat kami adalah untuk menguruskan kemampanan dalam peniagaan, inovasi serta kualiti, agar selaras dengan skala, potensi dan kapasiti kami. Bagi tujuan tersebut, kami telah dan akan terus meneroka teknologi baharu serta melabur dalam penambahbaikan yang berterusan. Kami memahami perubahan keperluan dunia masa kini dan masa hadapan, dan berharap untuk terus menyumbang kepada masa depan yang mengujakan,” kata Mohamad Helmy.

Sebarang pengumuman lanjut akan dibuat oleh SD Plantation sekiranya terdapat sebarang perkembangan penting.

• New Business Vertical kicks off with plan to co-develop Kerian Integrated Green Industrial Park
• The proposed 1,000-acre industrial park development to include large scale solar farms for Green Energy
• Foray into industrial park development marks a new direction for the soon-to-be rebranded plantation company

Petaling Jaya, 7 May 2024 - Sime Darby Plantation Berhad (SD Plantation or the Group) is capitalising on its vast landbank in Malaysia to create a lucrative and sustainable revenue stream. SD Plantation’s plans will kick off with its participation in the proposed Kerian Integrated Green Industrial Park (KIGIP), in the state of Perak, Malaysia.

SD Plantation and its largest shareholder, Permodalan Nasional Berhad (PNB) intend to collaborate in this 1,000-acre development, strategically located in SD Plantation’s Tali Ayer Estate in Perak. A joint proposal was submitted to the Ministry of Investment, Trade & Industry (MITI) in February.

KIGIP, conceptualised to attract green electrical and electronics (E&E) investments into the country, was announced by the Government in the 2024 National Budget. The plan also involves the establishment of 660 acres of solar farms as the principal green energy source for the area, designed to attract semiconductors and E&E investments, two of the fastest growing sectors in the global economy.

KIGIP is an initiative driven by the Federal Government in close collaboration with the State of Perak.

“The decision to actively participate in the KIGIP development is an important milestone for us as we venture into the natural adjacency of plantation companies,” SD Plantation’s Group Managing Director, Datuk Mohamad Helmy Othman Basha said. “We will establish strategic partnerships to develop our land where it makes the most sense to do so, and thus, establish a new and sustainable revenue stream.” He added that the company is well positioned to expand into this area due to its landbank and strong balance sheet.

KIGIP will have easy access to the North-South Expressway providing essential connectivity with major logistics hubs such as air and sea ports, making it attractive for potential tenants and investors. The main industrial zone will measure approximately 1,000 acres in what is currently SD Plantation’s Tali Ayer Estate in Kerian, Perak. Conceptually, about 67% of the main zone will comprise industrial areas, whilst the balance of the development will house other infrastructure such as commercial and residential facilities, as well as utilities, amenities, and large green spaces. Future phases of the development will progress upon completion of its first phase. Plans are subject to feasibility studies, due diligence, legal requirements, and other internal approval processes.

“By collaborating in such projects, instead of just signing off our land, we aim to secure more sustainable revenue streams for our shareholders,” Mohamad Helmy said.

The solar farms for KIGIP will be owned and operated by SD Plantation, as renewable energy has been identified as a key strategic pillar and revenue source for the Group. It is also a key component of SD Plantation’s net-zero strategy, specifically, a 42% reduction target in Scope 1 and Scope 2 Energy and Industrial carbon emissions by 2030. Renewable energy is expected to contribute significantly to the Group within the next five years. Moving forward, the company will identify less productive agricultural lands to convert them into solar farms.

The Group holds strategic landbanks in various states throughout Malaysia, and active discussions are currently ongoing with several state agencies to develop these lands into industrial parks. The intention is to replicate KIGIP’s green energy model where feasible. Separately, the Group is also exploring opportunities with partners to develop data centres, which typically consume large amounts of energy.

SD Plantation had started leasing its land to third party solar farms under the Government’s Large Scale Solar (LSS) schemes 1 and 4. For LSS4, about 40% of the quota for solar farms awarded by the Energy Commission of Malaysia was on SD Plantation’s land. Additionally, under the Corporate Green Power Programme, 38% of the quota was produced on the company’s land, some for its own use.

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Petaling Jaya, 28 Mei 2024 - Jenama baru ‘SD Guthrie’ telah diluluskan oleh para pemegang saham Sime Darby Plantation Berhad (SD Plantation atau Syarikat) di satu Mesyuarat Agung Luar Biasa (EGM) yang diadakan pada hari ini.

Pada EGM yang diadakan sejurus selepas penutupan Mesyuarat Agung Tahunan ke-21 SD Plantation, satu Resolusi Khas menerima cadangan pihak Lembaga Pengarah untuk menukar nama Syarikat kepada jenama baru tersebut telah diluluskan, setelah mendapat sokongan yang amat memberangsangkan daripada para pemegang saham berdasarkan peratusan undi setuju yang diterima sebanyak 99.99%.

Kira-kira 80% saham SD Plantation dimiliki oleh institusi-institusi utama di Malaysia termasuklah Permodalan Nasional Berhad (PNB), Kumpulan Wang Simpanan Pekerja (KWSP), Kumpulan Wang Persaraan [Diperbadankan] (KWAP), Lembaga Tabung Haji (LTH), dan Pertubuhan Keselamatan Sosial (PERKESO).

"Sokongan padu ini mencerminkan kepercayaan dan keyakinan para pemegang saham kami," menurut Pengerusi SD Plantation, Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani. "SD Guthrie adalah jenama yang amat bermakna bagi Syarikat kami. Setelah mengharungi perjalanan lebih dua abad, kami teruja untuk membuka lembaran baharu Syarikat ini dengan satu jenama yang penuh bersejarah.”

Dengan bermulanya transformasi ini, Syarikat tersebut turut merakamkan ucapan setinggi-tinggi penghargaan atas sokongan berterusan yang diterima daripada para pemegang saham, kakitangan, pelanggan, dan semua pihak berkepentingannya. Permohonan cadangan penjenamaan baharu Syarikat tersebut juga telahpun dihantar kepada Suruhanjaya Syarikat Malaysia untuk diluluskan.

Jenama SD Guthrie memberi penghormatan kepada dua jenama terkemuka dalam industri perladangan Malaysia - Kumpulan Guthrie Berhad dan Sime Darby Plantation Berhad. Nama Guthrie juga sinonim dengan salah satu tindakan berani yang berjaya dilaksanakan oleh Permodalan Nasional Berhad (PNB) pada tahun 1981. Dalam peristiwa tersebut, PNB, melalui langkah yang kini dikenali sebagai ‘dawn raid’ (serbuan fajar) yang dilaksanakan selama empat jam di Bursa Saham London, telah berjaya merampas pemilikan Guthrie dan memindahkan kawalan sepenuhnya syarikat gergasi tersebut kepada Malaysia. Pada tahun 2007, Guthrie, serta Sime Darby telah bergabung dengan syarikat Golden Hope Plantations untuk membentuk kumpulan Syarikat baharu Sime Darby yang lebih besar, di mana SD Plantation merupakan divisyen terbesar Kumpulan syarikat tersebut.

SD Plantation telah disenaraikan sebagai syarikat awam secara berasingan di Bursa Malaysia pada 30 November 2017, berikutan pemecahan Kumpulan syarikat Sime Darby yang menghasilkan penyenaraian tiga syarikat "Sime Darby" secara berasingan iaitu, Sime Darby Berhad, Sime Darby Property Berhad, dan SD Plantation. Situasi ini sering mencetuskan kekeliruan dalam pasaran kerana ketiga-tiga syarikat tersebut masih berkongsi jenama dan logo yang sama. Selain itu, hak milik dan kawalan jenama ‘Sime Darby’ oleh Sime Darby Berhad turut memberi kekangan kepada SD Plantation untuk mengembangkan operasi syarikat. Sebagai pemegang lesen di bawah Perjanjian Lesen Jenama dan Tanda Perniagaan, SD Plantation dikenakan bayaran yuran tahunan untuk menggunakan jenamanya dan perlu memohon kebenaran Sime Darby Berhad sebagai pemilik jenama, untuk sebarang urusan berhubung penggunaan dan aplikasi jenama tersebut.

"Sebagai SD Guthrie, kami akan terus memacu penghasilan nilai jangka panjang bagi pihak-pihak berkepentingan kami. Beberapa peluang pertumbuhan dalam sektor-sektor berkaitan yang akan kami terokai secara aktif sebagai SD Guthrie telah dikenalpasti, selaras dengan nilai dan tujuan kami," kata Datuk Mohamad Helmy Othman Basha, Pengarah Urusan Kumpulan SD Plantation. Pada 7 Mei 2024 yang lalu, SD Plantation telah mengumumkan cadangan Syarikat tersebut untuk bekerjasama dengan pihak PNB serta kerajaan Persekutuan dan Negeri dalam membangunkan Taman Perindustrian Hijau Bersepadu Kerian di Negeri Perak, Malaysia. Pelan tersebut turut melibatkan pembangunan ladang tenaga solar seluas 660 ekar sebagai sumber tenaga hijau utama bagi kawasan perindustrian tersebut.

Logo baru SD Guthrie akan diumumkan tidak lama lagi.

Sementara itu, SD Plantation akan terus didagangkan di Bursa Malaysia sebagai Sime Darby Plantation Berhad (Kod Saham: 5285) sehingga pendaftaran dan permohonan jenama barunya diluluskan oleh Suruhanjaya Syarikat Malaysia.

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Petaling Jaya, 28 May 2024 - The new ‘SD Guthrie’ brand has been approved by shareholders of Sime Darby Plantation Berhad (SD Plantation or the Company) at its Extraordinary General Meeting (EGM) held earlier today.

At the EGM, which was held immediately after the conclusion of the 21st Annual General Meeting of SD Plantation, shareholders’ approval was sought on the proposed change of the Company’s name. The Special Resolution was duly passed with extremely overwhelming support from shareholders, 99.99% of whom voted in favour of the proposal.

Approximately 80% of SD Plantation is owned by major Malaysian institutions, including Permodalan Nasional Berhad (PNB), Kumpulan Wang Simpanan Pekerja (KWSP), Kumpulan Wang Persaraan [Diperbadankan] (KWAP), Lembaga Tabung Haji (LTH), and Pertubuhan Keselamatan Sosial (PERKESO).

“Today’s resounding endorsement echoes the trust and confidence our shareholders have in us,” said SD Plantation’s Chairman, Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani. “The SD Guthrie brand carries much significance for us as an organisation, and I am delighted that we will embark on the next chapter of our 200-year history with this storied brand.”

The Company expresses its sincere gratitude to its shareholders, employees, customers and all its stakeholders for their continued support as it embarks on this exciting transformation. The proposed new brand has been submitted to the Companies Commission of Malaysia for approval.

The SD Guthrie brand pays homage to two great brands in the Malaysian plantation industry – Kumpulan Guthrie Berhad and Sime Darby Plantation Berhad. The Guthrie name is synonymous with one of the most audacious and successful moves made by PNB. In 1981, PNB executed a dawn raid on the London Stock Exchange, and in four hours was able to wrest control of Guthrie, bringing one of the giants of the industry under Malaysian control. In 2007, the Guthrie and Sime Darby groups merged with the Golden Hope Plantations Berhad, creating a much-enlarged Sime Darby Group. The largest division of the Sime Darby Group was SD Plantation.

SD Plantation was listed as a standalone company on Bursa Malaysia on 30 November 2017. This 2017 demerger of the Sime Darby group resulted in three listed “Sime Darby” companies, namely, Sime Darby Berhad, Sime Darby Property Berhad and SD Plantation. This situation often created confusion in the market as all three companies shared the same brand and logo. Another consideration was the fact that the “Sime Darby” brand is owned and controlled by Sime Darby Berhad. SD Plantation was a licensee under a Brand and Trademark Licensing Agreement, paying an annual fee for the right to use the brand. As a licensee, SD Plantation was required to seek Sime Darby Berhad’s permission and approval as the brand owner, on the uses and applications of the brand.

“As SD Guthrie, we will continue to drive long-term value for our stakeholders. We are exploring exciting new growth opportunities in adjacent sectors, in line with our values and purpose,” said SD Plantation’s Group Managing Director, Datuk Mohamad Helmy Othman Basha. On 7 May 2024, SD Plantation announced its plans to co-develop the Kerian Integrated Green Industrial Park in Perak, Malaysia, in collaboration with PNB, the Federal Government and the State of Perak. The plan also involves the establishment of 660 acres of solar farms as the principal green energy source for the area.

The new SD Guthrie logo will be unveiled soon.

The Company will trade on the Malaysian bourse as Sime Darby Plantation Berhad (Stock Code: 5285) until the registration and approval of the application of the new name are concluded through the Companies Commission of Malaysia.

Petaling Jaya, 31 May 2024 - SD Guthrie Berhad (SD Guthrie or the Group), formerly known as Sime Darby Plantation Berhad, registered a three-fold year-on-year (YoY) increase in net profit to RM211 million in the first quarter of the financial year ending 31 December 2024 (1Q FY2024).

The Group recorded a 9% YoY increase in fresh fruit bunch (FFB) production during the period, underpinned by a 33% increase in its Malaysian operations. This improved performance was the result of intensive rehabilitation efforts, supported by the regularisation of labour requirements.

The Group’s average realised crude palm oil (CPO) price of RM3,880 per metric ton (MT) was relatively flat YoY, whilst average realised palm kernel (PK) prices of RM1,940 per MT was 8% higher YoY, as compared to the previous corresponding period.

SD Guthrie’s downstream arm, SD Guthrie International, registered a profit before interest and tax (PBIT) of RM121 million in 1Q FY2024, a healthy 78% YoY increase. This strong performance was driven by higher volume demand for bulk and differentiated products in the Group’s Asia Pacific refineries and improved margins in Europe, which mitigated the lower profit contribution from its joint ventures.

Following shareholders’ approval on 28 May 2024, the Group rebranded to SD Guthrie. This rebranding marks a significant milestone for the company, reflecting its ambition to future growth. With a legacy spanning over 200 years, the new name honours the rich heritage and pioneering spirit of the original founders and the bold ambition of its first Malaysian shareholders. SD Guthrie today is driven by the same spirit and ambition, to create value and drive success, adapting to the dynamic global market.

Key Highlights

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

“Now that we are in a position to craft our own direction, I am excited for what the future holds for us and all our stakeholders. With the rebranding, we are exploring new strategies that will take the company into an exciting and dynamic future. I am confident that with the proactive mindset of our people, we will continue to deliver value to our shareholders."

Group Managing Director, Datuk Mohamad Helmy Othman Basha said,

“SD Guthrie started the year on a stronger footing, registering improved performance and successfully turning around its Malaysian upstream operations. In the last two years, we have achieved much in various areas – from being independently cleared of forced labour, recognised for our standards of integrity and governance and to being the first palm oil company to have net-zero targets validated by the SBTi. With all this in place, we are well-positioned to enter a new era for SD Guthrie."

OUTLOOK FOR FY2024:

In the near term, the Group expects CPO price to remain supported due to continued geopolitical tensions and the anticipated effects of extreme weather events in producing countries which may impact supply of vegetable oils globally.

Through the Group’s concerted efforts to rehabilitate its Malaysian upstream operations and accelerating its mechanisation and automation efforts, it anticipates continued growth in FFB production in 2024. The Group will continue to focus on its efforts to reduce costs through various transformational initiatives, and to drive operational excellence.

The Group also remains committed to pursuing new opportunities for business growth. The Group’s recently announced plans to utilise its vast landbank in Malaysia to create sustainable revenue streams, include its participation in the proposed 1,000 acres Kerian Integrated Green Industrial Park (KIGIP), in Perak. The project also involves the development of a further 660 acres for solar farms to be owned and operated by the Group, being the principal green energy source for KIGIP.

Barring any unforeseen circumstances, the Group is cautiously optimistic as it looks ahead to another satisfactory performance in FY2024.

Petaling Jaya, 6 June 2024 - SD Guthrie Berhad (SDG or the Company), formerly known as Sime Darby Plantation Berhad, supports the recent announcement by YAB Prime Minister of Malaysia, Dato' Seri Anwar bin Ibrahim on the rationalisation of diesel subsidies.

SDG has always purchased diesel at market price, without any form of subsidy or preferential pricing. Thus, when this rationalisation plan is implemented, it will not have any material impact on the cost of purchasing diesel.

On 21 May, the Malaysian government approved the start of the diesel subsidy rationalisation programme which is expected to save the government around RM4 billion a year. The programme targets users in Peninsular Malaysia, covering commercial consumers and owners of private vehicles such as small farmers, rice farmers and small traders.

SDG has aligned its strategies to market driven principles and thus contributes positively to Malaysia’s economic progress and reform agenda.

We believe that such rationalisation initiatives to remove subsidies and return to market prices will significantly enhance the prosperity of all Malaysians.