Petaling Jaya: With a strong start to the fiscal year, SD Guthrie Bhd, formerly known as Sime Darby Plantation Bhd, registered a net profit of RM567 million in the first quarter of the fiscal year ending December 31, 2025.
Group profit before interest and tax (PBIT) rose 118% year-on-year to RM1818 million, supported by robust performance in the upstream segment.
The upstream segment was obtained from higher average realized crude palm oil (CPO) and palm kernel (PK) prices, and from increased fresh fruit bunch (FFB) production.
The average RM4,576 and RM3,342 per RM3,342 (MT) for group realised CPO and PK prices is a corresponding increase of 18% and 72%. While FFB production in the Group’s Indonesian business increased by 11%, production in Papua New Guinea and the Solomon Islands increased by 10%, easing the 7% decline in the Group’s Malaysian business.
The group’s downstream arm, SD Guthrie International (SDGI), recorded a low Pbit of RM76 million in 25 quarters, representing a 37% year-over-year decline. SDGI performance was affected by lower margins in bulk and differentiated product segments and lower demand for Europe and in trading operations. However, this was partially mitigated by improved performance and profitability from the Asia-Pacific business.
Dr. Tan Sri, Chairman Nik Norzrul Thani, Nik Hassan Thani, said, “Due to the uncertain operating environment caused by sustained inflationary pressures fuelling unstable financial and trade policies, and the continued geopolitical tensions, we present challenges that the group believes to be navigating through the Prime Minister through the Prime Minister. In the past, it highlights the wealth of experience and unwavering commitment of management and employees.”
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In a positive note, he added that the growth pillar of the industrial park has achieved a milestone with the signing of a recent tripartite agreement on the development of the group’s main land in Bukit Peranduk, Negerisenbilan, within the country’s Malaysia Vision Valley 2.0 growth area.
The company said it is expected that CPO prices will soften in the short term, mainly due to rebounds in palm oil production as a result of improved weather conditions. Furthermore, given the current low-oil price environment, demand from biodiesel mixes is expected to weaken. Tariffs announced by the US may minimize the direct impact on Malaysia’s CPO, but they create price uncertainty and volatility in all vegetable oil markets. In addition to price uncertainty, potential disruptions in the global supply chain could further lead to an overall increase in operating costs.
Amid rising market volatility, the group expects slight improvements in FFB production driven by initiatives that improve ongoing operational excellence and yields.
SD Guthrie remains vigilant about potential regulatory changes and international trade development that could affect broader macroeconomic conditions, but it believes there is an opportunity to expand its downstream footprint. We continue to be committed to pursuing growth opportunities surrounding industrial park development and new business pillars of renewable energy.
The group focuses on delivering performance in 201025 and maintains careful outlook behind a resilient, challenging and unpredictable environment.
