KUALA LUMPUR: SD Gurthrie Bhd remains positive on its outlook for 2026 after posting a net profit of RM1.55bil in the first-half of the year.
The jump in profitability, up 44% from the same period in 2025, was owing to higher profits from its downstream segment and continued strong earnings from the industrial development segment.
Revenue in 1HFY26 declined to RM9.63bil from RM9.99bil in the year-ago period.
Meanwhile, the plantation group's net profit in the second quarter of 2026 nearly doubled to RM987mil from RM505mil in the year-ago quarter, on the back of revenue of RM4.94bil as compared to RM5.17bil in the comparative quarter.
According to the group's filing with Bursa Malaysia, the industrial development segment delivered a pre-tax profit of RM689mil in the current period, primarily driven by the RM529mil gain recognised upon the completion of the sale of 935 acres of land in the group's Kulai Estate, Johor, to EBP 8, as well as gains from an outright third-party land sale.
The downstream segment reported a pre-tax profit of RM245mil, a 21% increase from RM202mil in the previous corresponding period, driven by improved performance in Asia Pacific bulk operations on the back of improved margins and higher demand, and a lower share of losses from joint ventures.
This offset the weaker performance in the differentiated refinery operations in Asia Pacific and Europe, where profits declined due to lower sales volumes and softer margins.
However, the group's upstream segment reported an 18% decline in pre-tax profit to RM1.16bil due mainly to lower crude palm oil and palm kernel prices. There was also a 2% reduction in fresh fruit bunch production to 4.2 million tonnes, attributable to lower production from operations in Malaysia, Papua New Guinea and Solomon Islands, which was partially compensated by improved production in Indonesia.
Mohd Haris Mohd Arshad, president and group CEO of SD Guthrie, said the group's solid first-half performance, coupled with the continued strong earnings contribution underscores the progress of the group’s transformation into a more diversified and future-ready organisation beyond our traditional plantation base.
"While we expand our industrial development and renewable energy businesses through strategic partnerships, we are strengthening the group’s earnings resilience, creating new growth engines and positioning Guthrie for sustainable long-term value creation," he said in a statement.
The board of directors declared an interim dividend of 11.18 sen per share with entitlement date on Oct 21, 2026, and payable on Nov 4, 2026.
Separately, SD Guthrie has agreed to dispose of 556.96 acres (225.39ha) of agricultural land in Kulai, Johor, to Sime Darby Property
(Kulai) Sdn Bhd for about RM418.51mil.
"In line with Guthrie’s efforts to maximise the value of the Guthrie Group’s strategic landbank in Malaysia and to diversify its earnings profile beyond its core palm oil business, the proposed disposal will allow the Company to realise and unlock the value of the Kulai Lands at the prevailing market value," it said in a filing with the stock exchange.
The Kulai lands were identified as development potential land given
its location within the Johor-Singapore Special Economic Zone, making it a prime prospect for future development in Johor.
