KUALA LUMPUR: SD Guthrie Bhd
, formerly known as Sime Darby Plantation Bhd, said it expects the price of crude palm oil (CPO) to remain supported due to continued geopolitical tensions and the anticipated effects of extreme weather events in producing countries.
In its own operations, the group also expects continued growth in fresh fruit bunch (FFB) production in 2024 following efforts to rehabilitate its Malaysian upstream operations and accelerate its mechanisation and automation.
"The group will continue to focus on its efforts to reduce costs through various transformational initiatives, and to drive operational excellence," it said in a statement, while maintaining cautious optimism for another satisfactory performance in FY24.
The group affirmed it is off to a strong start as it turned in a net profit of RM211mil in the first quarter ended March 31, 2024 (1QFY24), amounting to three times the net profit of RM69mil recorded in the year-ago quarter.
Basic earnings per share rose to 3.1 sen from one sen in the comparative quarter, while revenue rose to RM4.34bil from RM4.07bil over the same period.
Group managing director Datuk Mohamad Helmy Othman Basha said the group had registered an improved performance and successfully turned 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."
Chairman Tan Sri Nik Norzrul Thani Nik Hassan Thani reflected on the rebranding of the group under its new name, SD Guthrie, and being in a position to "craft its own direction".
"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,” he said.
