SD Guthrie earnings up 22% in 2Q, declares 7.75 sen dividend
07/08/2025 (The Edge Malaysia), Kuala Lumpur - SD Guthrie Bhd’s (KL:SDG) net profit grew 21.7% in the second quarter ended June 30, 2025 (2QFY2025) from a year ago, thanks to higher crude palm oil (CPO) and palm kernel (PK) prices and output.
Net profit for 2QFY2025 was RM505 million, compared with RM415 million a year earlier, the world's largest palm oil producer by acreage said in an exchange filing. Revenue for the quarter under review rose 4.11% to RM5.17 billion from RM4.97 billion for 2QFY2024.
The group declared an interim dividend of 7.75 sen per share, with the ex-date on Oct 16 and payable on Oct 31.
The group’s upstream operations benefited from higher year-on-year average realised prices of CPO, which rose by 3% year-on-year (y-o-y) to RM4,146 per tonne, and PK, which rose by 50% y-o-y to RM3,247 per tonne. Its fresh fruit bunch (FFB) production also increased by 4% y-o-y.
Its downstream segment, SD Guthrie International, registered a 44% y-o-y decrease in profit before interest and taxes to RM126 million in 2QFY2025 from RM225 million a year earlier, as operations across Asia Pacific and Europe were impacted by lower demand and tighter margins.
For the first half ended June 30, 2025 (1HFY2025), SD Guthrie’s net profit jumped 71% to RM1.07 billion, compared to the RM626 million recorded in 1HFY2024. Revenue gained 7% to RM9.99 billion in 1HFY2025, from RM9.31 billion a year earlier.
Looking ahead, SD Guthrie expects CPO price to remain volatile in the second half of 2025 as the industry enters into its peak output cycle, supported by improved weather conditions, softer biodiesel demand amid the low crude oil price environment, and the ongoing global macroeconomic uncertainty. While palm oil's price discount against other vegetable oils may boost demand, macroeconomic headwinds and US tariff changes may add to market volatility, it said.
The group also anticipates improvement in FFB production, supported by better operating conditions as well as productivity enhancement efforts across its operations in Malaysia, Indonesia, Papua New Guinea and Solomon Islands.
Additionally, the group’s focus on its new business pillars, the renewable and industrial development segments, has gained traction and is expected to enhance the group’s performance.
“As we expand into our new pillars on the back of the national development agenda, we are committed to ensuring the collaborations on our land are well-strategised and take into consideration the development potential of the area and also the impact [on] surrounding communities,” said group managing director Datuk Mohamad Helmy Othman Basha in a statement.
“The recent memorandum of understanding (MOU) with Permodalan Negeri Selangor Bhd (PNSB) to co-develop a Food Security and Edu-Tech Hub on Carey Island is a prime example of our commitment. Here the focus is not only to stimulate economic growth on the island, but also to ensure the existing community and rich heritage are protected. SD Guthrie values opportunities to be involved in such meaningful developments,” he added.
Shares of SD Guthrie rose one sen or 0.21% at RM4.76 as of Thursday’s noon break, giving it a market capitalisation of RM32.92 billion.