PETALING JAYA: SD Guthrie Bhd
remains positive on its outlook for 2026 after posting a net profit of RM1.55bil in the first half of the year ended June 30, 2026.
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 the first half of the year 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 the Solomon Islands, which was partially compensated by improved production in Indonesia.
Mohd Haris Mohd Arshad, president and group chief executive officer 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 announced that it has agreed to dispose of 556.96 acres (225.39ha) of agricultural land in Kulai, Johor, to Sime Darby Property Bhd’s (SimeProp)wholly-owned subsidiary, 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 parcel of land at the prevailing market value,” it said in a filing with Bursa Malaysia.
The Kulai land was identified as development potential land given its location within the Johor-Singapore Special Economic Zone (JS-SEZ), making it a prime prospect for future development in Johor.
Meanwhile, SimeProp in a statement said it plans to develop the site into a sustainable township comprising landed residential and commercial developments, with an estimated gross development value of approximately RM3bil.
“The first phase is targeted for launch in 2028, with the overall development expected to be completed over the next 10 to 15 years.”
SimeProp added that the acquisition is expected to further strengthen its established presence in Johor, complementing the company’s existing developments in Bandar Universiti Pagoh and Taman Pasir Putih in Pasir Gudang.
“It also broadens the group’s geographical earnings base beyond the Klang Valley and Negri Sembilan, while reinforcing its long-term growth pipeline through the addition of a sizeable strategic landbank in one of Johor’s key growth corridors.”
SimeProp group managing director and chief executive officer Datuk Seri Azmir Merican said the acquisition marks another strategic milestone for the company as it continues to strengthen its footprint in Johor.
“Located within the highly anticipated JS-SEZ, this site presents an opportunity to create a sustainable township that builds on our proven track record of developing integrated, thriving communities.
“With its excellent location and sizable land area, we are well-positioned to deliver a distinctive development that meets evolving market demand while supporting economic activity, creating employment opportunities, and contributing to Johor’s long-term growth.”
Azmir added that the acquisition also reinforces the company’s disciplined commitment to expanding its development portfolio in locations with strong future potential.
