Petaling Jaya, 21 August 2024 - SD Guthrie Berhad (SD Guthrie or the Group), formerly known as Sime Darby Plantation Berhad, registered a net profit of RM626 million for the six months ended 30 June 2024 (1H FY2024), a 39% year-on-year (YoY) increase from the previous corresponding period. For the second quarter of the financial year ending 31 December 2024 (2Q FY2024), the Group’s recurring net profit increased by 134% YoY contributing to the overall net profit of RM415 million.

The Group’s improved YoY operational performance was the result of improved fresh fruit bunch (FFB) production, lower operational costs and sustained strong crude palm oil (CPO) and palm kernel (PK) prices. FFB production rose by 8% YoY, primarily driven by the strong recovery in the Group’s Malaysian operations which recorded a commendable 38% YoY increase in FFB production. In 2Q FY2024, the Group’s average realised CPO and PK prices increased by 7% and 23% YoY to RM4,029 per metric ton (MT) and RM2,166 per MT respectively.

SD Guthrie International (SDGI), the Group’s downstream arm, also delivered strong results, registering a marked increase in YoY profits. In 2Q FY2024, SDGI’s profit before interest and tax (PBIT) increased by 81% to RM225 million from RM124 million in 2Q FY2023. The higher profits was largely attributable to higher margins achieved in all regions, primarily due to better prices, higher sustainability premiums and improved product mix.

Key Highlights

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

“I am pleased that SD Guthrie continues on its positive trajectory this year. Our strong financial performance to date adds to the excitement of our new brand identity as well as many other exciting developments in the company. The general optimism about what lies ahead is driving the commitment of our people and fuelling their motivation to move SD Guthrie forward, as we continue to create more value for our shareholders."

Group Managing Director, Datuk Mohamad Helmy Othman Basha said,

“These are exciting times indeed for SD Guthrie. Our involvement in the development of Kerian Integrated Green Industrial Park in Perak as well as the next phase of Enstek Industrial Park in Negeri Sembilan reflects the huge opportunities that lie ahead for our Company as we continue to pursue opportunities in our new business verticals, to enhance the value of our land. Having said that, our commitment to strengthening our core business segments is evident in the success of Upstream Malaysia’s rehabilitation efforts and remarkable turnaround. With this critical foundation in place, we will be well-positioned to shift focus towards our growth strategies and explore the further diversification of our current business to deliver a stronger performance in the future."

OUTLOOK FOR FY2024:

The Group forecasts that prices will remain firm until year end in line with global economic recovery. Expectations of sustained CPO demand is also expected to lend support to prices as it remains competitive compared to other vegetable oils.

The Group expects its plantation operations will continue to register improvements, especially from its Malaysian operations following the success of intensive rehabilitation efforts as well as enhanced agronomic practices. This clear focus on the core business segments will be reinforced even as SD Guthrie actively pursues opportunities in new business verticals, embarking into industrial park development in various states and renewable energy, particularly solar farms.

Barring any unforeseen circumstances, the Group expects its performance for the financial year ending 31 December 2024 to be satisfactory.

OUTLOOK FOR FY2024:

The Group is pleased to declare an interim dividend of 4.65 sen per share for FY2024.