SD Guthrie group managing director Datuk Mohamad Helmy Othman Basha
KUALA LUMPUR: SD Guthrie Bhd
, formerly known as Sime Darby Plantation Bhd, delivered a strong first-quarter (1QFY25) result on the back of improved contribution from the upstream segment.
The plantations firm said its quarterly net profit more than doubled to RM567mil from RM211mil in the year-ago quarter, bringing earnings per share to 8.2 sen from 3.1 sen previously.
Quarterly revenue climbed to RM4.82bil from RM4.34bil in the comparative quarter.
In a statement, SD Guthrie said the upstream segment benefited from higher average realised crude palm oil (CPO) and palm kernel (PK) prices and increased fresh fruit bunch (FFB) production.
"The group’s realised CPO and PK prices averaged RM4,576 and RM3,342 per metric tonne (MT) respectively, a corresponding increase of 18% and 72%.
"FFB production in the group's Indonesian operations rose 11% while production in Papua New Guinea and Solomon Islands improved by 10%, cushioning the 7% decline in the Group’s Malaysian operations," it said.
Meanwhile, SD Guthrie International (SDGI), the group's downstream arm recorded a lower 1QFY25 profit before interest and tax (PBIT) of RM76mil, which was 37% lower than in the year-ago quarter.
SDGI registered lower margins in the bulk and differentiated product segments, as well as weaker demand in its European and trading operations.
“The group kicked off the year on a strong note, as reflected by our solid performance, driven by ongoing efforts to enhance operational excellence.
"As the year progresses, we are cognisant of prevailing economic and geo-political conditions that may require strategic shifts to keep the Group on track for a strong FY2025," said group managing director Datuk Mohamad Helmy Othman Basha.
On outlook, SD Guthrie said the price of CPO is expected to soften in the near-term mainly due to a rebound in palm oil production as a result of improved weather conditions.
Furthermore, demand from biodiesel blending is expected to weaken given the current low crude oil price environment.
Commenting on the global trade tariffs situation, the group said it has created price uncertainty, while the potential disruption in the global supply chain could further lead to an overall increase in operational
costs.
The group expects modest improvement in FFB production, driven by its ongoing operational excellence and yield-enhancing initiatives.
Meanwhile, it believes that there are opportunities to expand
its downstream footprint and remains committed to pursuing growth opportunities surrounding its new business pillars of industrial park development and renewable energy.
"The group remains focused and resilient in delivering its performance in FY25 and maintains a cautious outlook on the back of a challenging and unpredictable environment," it added.
