Latest news with #RM567mil
The Star
07-05-2025
- Business
- The Star
SD Guthrie aims for key growth sectors
SD Guthrie group managing director Datuk Mohamad Helmy Othman Basha. PETALING JAYA: SD Guthrie Bhd is cautiously optimistic for the financial year ending Dec 31, 2025 (FY25), citing opportunities for downstream expansion and modest gains in fresh fruit bunch (FFB) production amid a challenging economic landscape. In a statement, group managing director Datuk Mohamad Helmy Othman said the group would continue to pursue opportunities in its new business pillars, particularly industrial park development and renewable energy. He highlighted a recent milestone in the industrial park segment, where SD Guthrie entered into a tripartite agreement for the development of 483.55ha of prime land in Bukit Pelandok, Negri Sembilan. 'While we remain cautious amid economic and geopolitical uncertainties, we are optimistic about the opportunities ahead. Our strategy continues to focus on enhancing operational excellence and capitalising on key growth sectors,' he said in a statement. SD Guthrie started the year with a jump in net profit to RM567mil or an earnings per share of 8.20 sen in the first quarter ended March 31, 2025 (1Q25). This was an increase from a net profit of RM211mil in the same quarter of the previous year. The group also posted a higher revenue of RM4.82bil in 1Q25, up by 10.94% year-on-year from RM4.34bil in 1Q24. The group attributed the earnings growth to a stronger performance from its upstream segment, which remains its core contributor. Profit before interest and tax (PBIT) for the upstream segment tripled to RM753mil in 1Q25 from RM255mil in the previous year, driven by higher average realised prices for crude palm oil (CPO) and palm kernel (PK), as well as improved FFB production. The group's realised CPO and PK prices averaged RM4,576 and RM3,342 per tonne respectively, a corresponding increase of 18% and 72%. The group's FFB production in Indonesia rose 11%, while operations in Papua New Guinea and the Solomon Islands recorded a 10% increase. It was noted that the gains helped cushion the 7% decline in production from the Malaysian operations. Conversely, the downstream segment reported a lower PBIT of RM76mil, down from RM121mil a year earlier. The decline was mainly due to weaker contributions from European refineries and Asia-Pacific bulk operations. 'However, the decline was mitigated by stronger profits from the Asia-Pacific differentiated operations, driven by improved sales volume and lower losses from joint ventures,' it added. Other business segments, namely renewables and other operations, had both reported losses. SD Guthrie chairman Tan Sri Nik Norzrul Thani Nik Hassan Thani acknowledged that the uncertain operating environment and continuing geopolitical tensions could present challenges for the group in the short and medium term. 'Despite this, I firmly believe the group has the necessary resilience and capability to face headwinds just as we had in the past, underscoring the wealth of experience and unwavering commitment of our management and employees,' he added.
The Star
07-05-2025
- Business
- The Star
SD Guthrie's 1Q net profit leaps to RM567mil
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.
