Petaling Jaya, Malaysia, 3 February 2025 - SD Guthrie International Limited (SDGI), formerly known as Sime Darby Oils International Limited, has acquired a 48% equity interest in Netherlands-based Marvesa Supply Chain Services B.V. (Marvesa). The EUR54 million (about RM250 million) acquisition enhances SDGI’s capabilities in supplying oils and fats to the strategic European animal feed and biofuel industries. The 48% stake was purchased from Parcom, a Dutch private equity firm. The remaining 52% stake is held by BGR Beheer B.V., which is owned by the current executive management of Marvesa.

SDGI is a wholly-owned subsidiary and the downstream arm of SD Guthrie Berhad (SD Guthrie), formerly known as Sime Darby Plantation Berhad. SD Guthrie is one of the world’s largest producers of Certified Sustainable Palm Oil (CSPO), producing about 12% of all CSPO in the world. It is a fully integrated player in the global palm oil value chain with business presence in 12 countries.

Marvesa is a well established name in the European market, specialising in the sourcing, blending, and distribution of oils and fats to the animal feed and biofuel industries. Its diverse customer base, comprising traders, distributors, and multinational feed producers, make it a key partner in the region.

The Marvesa acquisition strengthens SDGI’s presence in Europe, where it serves customers in 11 countries from its Zwijndrecht refinery in the Netherlands, which has a capacity of 450,000 metric tonnes annually. The refinery produces a variety of oils and fats that are essential for applications such as industrial frying, emulsifiers, bakery and confectionery ingredients, margarines, dairy products, candles, and milk substitutes, catering to evolving market needs.

“This acquisition positions us for long term success across emerging markets,” said Dr. Shariman Alwani, SDGI’s Chief Executive Officer. “To stay ahead of market demands and regulatory changes, it is crucial that we work together with strong, like-minded partners. Our position in Europe is now stronger and we will be able to build more robust relationships."

The collaboration between SDGI and Marvesa creates powerful synergies. Marvesa’s established trading volumes in lecithin, soy and other soft oils align with SDGI’s diversification strategy into non-palm sectors. This allows both companies to penetrate high growth opportunities, including in North & Central Asia Pacific, the Middle East & Africa, and the Americas. Marvesa already has a presence in Indonesia and is well positioned for growth in the Southeast Asia region that is experiencing high demand for animal feed ingredients.

“As shareholders in Marvesa, we are deeply invested in its growth and long-term success. This partnership with SDGI is a testament to the strength of our business and our shared vision for sustainable value creation. Together, we are well positioned to drive growth and deliver exceptional value to our customers across Europe and beyond.” said Bart de Bruycker, Chief Executive Officer of Marvesa.

The acquisition aligns with SDGI’s long-term strategy to integrate its value chain and expanding its footprint in key markets.

Click here to download the Press Release in Bahasa Malaysia.

Tawaran pekerjaan PALSU di WhatsApp! 🚨

Jangan terpedaya dengan mesej WhatsApp yang menawarkan pekerjaan di Sime Darby Plantation Berhad (SDP). Kami tidak pernah mengeluarkan sebarang iklan pekerjaan melalui WhatsApp. Semua iklan pekerjaan hanya dikeluarkan melalui saluran komunikasi rasmi syarikat dan media massa terpilih.

SDP ingin mengingatkan orang awam agar menghubungi kami melalui pautan-pautan yang disenaraikan di bawah, sekiranya menerima mesej penipuan tersebut:

1. E-mel: communications@sdguthrie.com
2. Tapak web: www.simedarbyplantation.com
3. Instagram: https://www.instagram.com/simedarbyplantation/
4. LinkedIn: https://www.linkedin.com/company/simedarbyplantation/
5. Facebook: https://web.facebook.com/sdplantation
6. Threads: https://www.threads.net/@simedarbyplantation

• 30,000 seedlings provided by the Forest Department Sarawak to be planted on a 50-ha site, in first phase

Simunjan, 26 November 2023 - Sime Darby Plantation Berhad (SDP) has dedicated a 400-hectare peatland in its operation in Sarawak, East Malaysia, for reforestation, opting not to replant oil palm but restore it into a functional peat ecosystem. The initial 50-hectare phase of this restoration work, starting in January 2024, will involve planting of 30,000 seedlings over a year period in SDP’s Lavang Estate.

Forest Department Sarawak (FDS) is collaborating with SDP on this important project by providing the seedlings and technical expertise.

The project at Lavang Estate is an integral part of SDP’s peatland rehabilitation initiative, co-funded by the Malaysian Palm Oil Green Conservation Foundation (MPOGCF). Through a Memorandum of Agreement (MOA) signed in March 2023, MPOGCF has agreed to contribute RM1.48 million for SDP to rehabilitate and restore the 50-ha peatland. RM300,000 will be used to pay for the seedlings and FDS’ technical expertise whilst the balance will be used for biodiversity assessments, planting and maintenance of the area, community engagement and other related activities of the project.

SDP’s Group Managing Director, Datuk Mohamad Helmy Othman Basha said restoring and rehabilitating peatland areas cultivated with oil palms is a critical part of the company’s commitment to have net-zero carbon emissions by 2050. By restoring peatlands, SDP will be able to sequester carbon, enhance biodiversity, and reduce its overall environmental impact.

“The reforestation and rehabilitation of less productive agriculture land is a vital naturebased solution, especially in ecologically sensitive landscapes. However, it takes experience and expertise to implement land use transformation initiatives successfully and bring forests back to life, especially in challenging landscapes such as peatlands,” said Mohamad Helmy during the Trek Komoditi Industri Perkayuan (Ladang Hutan) Sarawak event organised by the Ministry of Plantations and Commodities. SDP handed over the cheque for RM300,000 to FDS at the event.

The main challenge of the project is the availability of suitable plant species, given that peat areas have high-water tables and are susceptible to flooding. FDS has thus far supplied 10 species of peatland related trees such as Ramin, Gelam, Pulai, Nyatuh and Medang, which were obtained from its Sibu branch.

“Our approach has always been to work with as many like-minded partners as possible in all our tree-planting and reforestation projects. We have found that this is the best way of harnessing the relevant expertise needed. We are delighted that the Forest Department Sarawak has decided to come on board with us,” he added.

Mohamad Helmy said SDP is also working closely with other partners in Sarawak for its reforestation and tree-planting initiatives, including Yayasan Sime Darby, Bintulu Campus of Universiti Putra Malaysia, (UPMKB) and Tropical Peat Research Institute, Sarawak (STROPI). In collaboration with various partners, SDP has to date, planted nearly 1.9 million forest trees throughout its operations over the last 14 years, including various endangered, rare and threatened species.

Besides serving as a test case for the Roundtable on Sustainable Palm Oil’s peatland management practices, SDP's peatland rehabilitation model project will benefit the ecosystem, biodiversity, water and fire management, and act as a research platform. The project will further raise awareness, share knowledge with communities, and create job opportunities through forest tree nurseries and planting programmes.

• Upstream Malaysia’s fresh fruit bunch production surges by 38%
• Special interim dividend of 5.70 sen per share declared in October 2023

Petaling Jaya, 24 November 2023 - Sime Darby Plantation Berhad registered a net profit of RM1.2 billion in the third quarter of its financial year ending 31 December 2023 (3Q FY2023), a threefold increase from RM396 million recorded in 3Q FY2022. The quarter’s strong performance bolstered the Group’s net profits for the nine-month period ended 30 September 2023 (9M FY2023) to RM1.7 billion.

The Group’s upstream operations registered an impressive improvement in 3Q FY2023, led by the strong recovery of the Malaysian operations, which saw a 38% year-on-year (YoY) increase in fresh fruit bunch (FFB) production, due to having more harvesters and intensive rehabilitation efforts. The Malaysian production volume achieved in 3Q FY2023 was higher by 43% quarter-on-quarter (QoQ) and also represented 43% of the total Malaysian production for 9M FY2023.

This resulted in a 14% YoY increase in overall FFB production for the Group, which mitigated the impact of lower average realised crude palm oil (CPO) and palm kernel (PK) prices. CPO prices declined 12% YoY to an average of RM3,777 per metric tonne (MT), compared to RM4,277 per MT in the previous corresponding period, whilst average realised PK prices declined by 11% YoY to RM1,721 per MT from RM1,940 per MT in 3Q FY2022.

Sime Darby Oils (SDO), the Group’s downstream operations, recorded a lower profit before interest and tax (PBIT) at RM225 million in 3Q FY2023, a decline from RM337 million achieved in 3Q FY2022. The decline was due to lower margins and volume demands in SDO’s Asia Pacific operations, although this was partially mitigated by strong results in its European operations.

Key Highlights

• During the period under review, the Group recorded a non-recurring PBIT of RM876 million comprising the following:
  1. Disposal of interests in two Indonesian subsidiaries for a total gain of RM278 million;
  2. Gain from land sale in Malaysia of RM607 million; and
  3. Impairment charge of RM9 million in respect to the Group’s rubber plantation in Malaysia.

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

“Despite a challenging start to 2023, I am delighted that the Group is back on track to deliver a satisfactory performance this year. I am also thrilled with the strategic partnerships that the Group has established recently in China and India, two of our major export countries. We are looking forward to unlocking more value with these collaborations as ongoing improvement efforts will ensure that we are able to close the second half of the year on a much stronger footing.”

Group Managing Director, Datuk Mohamad Helmy Othman Basha said,

“After the setbacks suffered between 2020 and mid-2023, we are seeing the results of months of rehabilitation work with an increased workforce successfully turning around our Upstream Malaysia operations in 3Q FY2023. We expect to achieve the full complement of harvesters for Sabah and Sarawak by end of the year, and by mid-2024, these harvesters will acquire sufficient skills to be more productive. We will also continue to localise our workforce as we are no longer recruiting new foreign workers for non-harvesting work. Whilst the rehabilitation work continues and is expected to be completed by mid-2024, I’m pleased to report that our labour shortage crisis is now behind us. We remain steadfast in our focus to reduce long-term dependence on manual labour through mechanisation, automation and digitalisation."

OUTLOOK FOR REMAINING FY2023:

Commodity prices are expected to remain volatile in the near term due to persistent geopolitical concerns and global macroeconomic uncertainties. Although El Niño has not yet caused widespread dryness in Southeast Asia, on a global level, it has contributed to supply concerns as vegetable oil production may be impacted in 2024.

Whilst demand is expected to grow seasonally in the coming months, high inventory levels in key destinations may limit the offtake upside. In the long term, prospects remain stable as conventional demand for food and fuel remain strong.

The Group is optimistic of achieving higher FFB production for the full year, largely driven by improvements in labour productivity and field conditions in its Malaysian operations. The Group also continues to explore further growth in new and existing markets, particularly via its downstream arm, Sime Darby Oils.

While challenges persist, the Group is expected to perform satisfactorily in FY2023.

DIVIDEND:

The Group declared a special interim dividend of 5.70 sen per share for FY2023 on 27 October 2023.