Latest news with #SDGuthrie
Sinar Daily
a day ago
- Business
- Sinar Daily
SD Guthrie achieves strong first half with RM1.07 billion net profit
SHAH ALAM - SD Guthrie Berhad delivered a strong performance for the first half of FY2025, reporting a net profit of RM1.07 billion, a 71 per cent year-on-year (YoY) increase from RM626 million in the same period last year. For the second quarter alone, net profit rose 22 per cent to RM505 million. The Group's outstanding results were largely driven by its Upstream segment, which saw profits double on the back of stronger average realised prices for crude palm oil (CPO) and palm kernel (PK), up three per cent and 50 per cent YoY respectively. Fresh fruit bunch (FFB) production also rose by four per cent, with growth recorded across all regions. In contrast, the Downstream segment, SD Guthrie International (SDGI), recorded a 44 per cent decline in profit before interest and tax (PBIT) in 2Q FY2025, impacted by weaker demand and tighter margins in Asia Pacific and Europe. However, its Oceania operations achieved solid performance, supported by higher sales and improved margins. SD Guthrie stays focused on long-term growth. Following a strong first half, SD Guthrie is staying focused on long-term growth despite global uncertainties. Its chairman, Tan Sri Dr Nik Norzrul Thani, said that continued progress in the Group's operational excellence, as well as growing momentum in its new Industrial Development and Renewables segments, will help future-proof the business. 'Moving into second half of FY2025, the global economic and operating environment remains volatile and unpredictable. As such, the meaningful progress made in our operational excellence initiatives, and the steady uptick in activities within the new Industrial Development segment and continuous progress made in the Renewables sector, will help to future proof the Group. "I am pleased with Guthrie's momentum and am confident that our disciplined approach to driving measurable results will deliver long-term and sustainable value to shareholders,' he said in a statement. Meanwhile, Group Managing Director Datuk Mohamad Helmy Othman Basha said that the Group's solid results reflect the strength of its strategy and execution. As Guthrie expands into new growth areas, including national development-linked projects, it remains committed to responsible collaboration. 'The Group's performance in this period bears testament to our robust strategy and disciplined execution, as we continue to prioritise operational excellence. Even as our core business segments regain momentum, the new and expanded strategic focus to pursue broader growth initiatives is starting to take shape. "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 to surrounding communities. "The recent Memorandum of Understanding (MoU) with Permodalan Negeri Selangor Berhad (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. Guthrie values opportunities to be involved in such meaningful developments,' he said. SD Guthrie is committed to responsible collaboration. After a strong first half of 2025, SD Guthrie is preparing for a more uncertain second half. The Group expects higher fresh fruit bunch (FFB) production, thanks to better weather and improved productivity across its plantations in Malaysia, Indonesia, Papua New Guinea, and the Solomon Islands. With new business areas gaining momentum, SD Guthrie is confident it can stay strong and grow, even as market conditions remain challenging.
New Straits Times
a day ago
- Business
- New Straits Times
SD Guthrie's 2H profit outlook brightened by RM500mil land disposal gains
KUALA LUMPUR: SD Guthrie Bhd is poised for a stronger headline profits in the second half of 2025 (2H25), lifted by RM500 million land disposal gains, said Maybank Investment Bank Bhd (Maybank IB). Its senior analyst Ong Chee Ting said the potential gains is expected to lift earnings despite weaker plantation performance on lower average selling prices (ASPs). He said the group's second quarter FY25 core profit after tax and minority interests (Patmi) once again beat market expectations, largely driven by higher-than-expected ASPs supported by forward sales earlier in the year. SD Guthrie posted a core Patmi of RM466 million for the quarter, up 16 per cent on yearly basis but down 14 per cent from the first quarter. This brings the first half core Patmi to RM1.01 billion, a 61 per cent jump from the same period last year and equivalent to 61 per cent of Maybank IB's and 58 per cent of consensus full-year estimates. Tan said SD Guthrie maintained its full-year fresh fruit bunches growth guidance at 3-5 per cent, with Maybank IB forecasting the upper end at five per cent. Meanwhile first half output, up three per cent, represented 46 per cent of FY25 estimates. On pricing strategy, the group has limited forward sales for the rest of the financial year, averaging around RM4,100 per tonne. Despite guiding for a stable full-year unit cost of RM2,500 per tonne, SD Guthrie expects improving yields to lower second half of the year's (2H25) cost below the RM2,600 per tonne recorded in 1H25. "Following the strong set of results, we raise our financial year 2025 (FY25) core Patmi by six per cent mainly on higher upstream contribution on higher crude palm oil ASP while trimming downstream earnings. "Our FY26-FY27 core Patmi estimates are kept broadly unchanged. Our earnings forecasts have yet to factor in potential land sales gains in 2H25," Tan added. The firm kept its "Buy" call on SD Guthrie with a higher target price of RM5.64.
The Star
a day ago
- Business
- The Star
SD Guthrie's shares rise on strong 2Q earnings
KUALA LUMPUR: Shares in SD Guthrie Bhd rose in early trade Friday after reporting better-than-expected financial results in the second quarter ended June 30 (2Q25). The plantation group rises 1.89%, or nine sen, to RM4.86 at 10.07 am, gaining more than 2.5% over the past month. SDG posted a net profit of RM505mil in 2Q25, up from RM415mil in the same quarter last year. It reported revenue of RM5.17bil compared to RM4.97bil in 2Q24. Over the six-month period, net profit came to RM1.07bil against RM626mil in 1HFY24, while revenue rose to RM9.99bil from RM9.31bil in the year-ago period. Hong Leong Investment Bank Research (HLIB Research) said SD Guthrie's 1H25 core net profit of RM1.06 bil, up 69%, exceeded expectations, making up 60.7% to 60.9% of both its and consensus full-year forecasts, driven mainly by stronger-than-expected Papua New Guinea (PNG) operations and lower finance costs. 'We raise our FY25-27 core net profit forecasts by 4.6%/4.3%/6.1%, mainly to account for CPO production cost at PNG operations and lower finance cost assumptions,' the research house said. HLIB Research has maintained its 'buy' rating on SD Guthrie with a higher target price of RM5.37, based on 21 times the revised FY26 core EPS of 25.6 sen. Meanwhile, RHB Research said SD Guthrie's 2Q25 core earnings beat expectations, rising 24% year-on-year but easing 8% quarter-on-quarter, with 1H25 core profit making up 62% to 70% of its and consensus' FY25 forecasts. The outperformance was driven by lower interest costs, higher-than-expected CPO average selling prices in Malaysia (from forward sales) and PNG, as well as stronger downstream margins. SD Guthrie declared an interim dividend of 7.8 sen, representing a 50% payout. RHB has maintained its 'buy' call on SD Guthrie, raising its SOP-based target price to RM6.10 from RM5.45 after increasing earnings forecasts by 21.8%, 15.1% and 15.5% for FY25F to FY27F. The upgrades stem from higher ASP premiums for PNG, lower interest rates, and improved downstream margins. Valuation remains attractive at 19.6 times 2026F P/E, compared with peers' range of 17 to 22 times.
Daily Express
2 days ago
- Daily Express
Sime praised for gesture
Published on: Friday, August 08, 2025 Published on: Fri, Aug 08, 2025 By: Ibrahim Tabir Text Size: Forest reserve at Ulu Kalumpang near Impian Lake. KUNAK: Sime Darby Guthrie has been praised for heeding public requests to open up several sites in its property here for tourism. Community activist and patron of the Kunak District Tourism and Culture Association, Datuk William Chiuh, said SD Guthrie is also open to a joint venture to develop the tourism industry in the district, following a courtesy call with District Council staff and members of the Assemblywoman's office, recently. Advertisement According to William, further discussions will be held with the Guthrie SD (Eco Garden). Among the tourism locations to be opened include Impian Lake, the Japanese tunnel in Mostyn, the mud pool at the Binuang farm and the hot springs at Sungang farm. These sites will be managed by Eco Garden, SD Guthrie's peninsula-based subsidiary. Subscribe or LOG IN to access this article. Support Independant Journalism Subscribe to Daily Express Malaysia Access to DE E-Paper Access to DE E-Paper Exclusive News Exclusive News Invites to special events Invites to special events Giveaways & Rewards 1-Year Most Popular (Income Tax Deductible) Explore Plans Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Star
2 days ago
- Business
- The Star
US tariffs unlikely to impact SD Guthrie exports
SD Guthrie group managing director Datuk Mohamad Helmy Othman Basha. KUALA LUMPUR: SD Guthrie Bhd does not expect any near-term impact from the US tariffs, says group managing director Datuk Mohamed Helmy Othman Basha. According to him, while it does export to the United States, it only consists of very small volumes – about 2% only. 'The fact is, products can only come from Malaysia or Indonesia, and as Indonesia has the same tariff rates, we don't see any impact at all, at least not in the immediate term,' he told reporters after the group's second-quarter results announcement here yesterday. The palm oil producer posted a higher net profit of RM505mil for the second quarter ended June 30, 2025 as well as a higher revenue of RM5.17bil, compared to RM4.97bil in the same quarter last year. Mohamed Helmy said the increase in earnings was on the back of strong results from its upstream segment. 'We have a bit of a double tailwind in the sense that we expect production to remain strong for our operations. We also expect crude palm oil (CPO) prices to stabilise at around RM4,000 and RM4,100 for the rest of the year,' he noted. The group's downstream segment, however, faced a number of headwinds. This segment was the only negative in its results, registering RM126mil in profit before interest and taxes, a decrease from the RM225mil posted in the same quarter last year. The drop was due to weaker profits generated by the refineries and operations across Asia Pacific and Europe, impacted by both lower margins and reduced volume demand, further compounded by the lower share of profits from joint ventures. For the six-month period ended June 30, 2025, SD Guthrie's net profit rose to RM1.07bil against RM626mil in the same period last year, while revenue grew to RM9.99bil from RM9.31bil in the first half of 2024. Similar to its quarterly earnings, the increase was mainly due to strong upstream operations, which resulted from higher year-on-year (y-o-y) average realised CPO and palm kernel prices which rose by 3% and 50% y-o-y to RM4,146 and RM3,247 per tonne, respectively. On top of that, its fresh fruit bunch (FFB) production increased by 4%, as all segments registered higher FFB production. Moving forward, Mohamed Helmy said he expects the upstream segment to carry more of the growth for this year. He opined that the rest of the year will continue to have a positive trajectory. Among the key drivers include the two business pillars the group has been focusing on lately – industrial parks and renewable energy. 'These two pillars have gained traction, but there is still a lot of work in the pipeline. 'Some have translated into joint ventures and we expect profit recognition by the third quarter,' he said. He added that by 2030, the plan is that the two business pillars will contribute nothing less than RM700mil to RM800mil to the group's bottom line. 'That should be close to about 30% to the overall contribution' he noted. Meanwhile, Mohamed Helmy said while the group has been aware of the impact in terms of costs related to the 5% charge from the sales and service tax, it is hoping for an exemption. 'There is a request in relation for an exemption for this. We are hoping to hear about the exemption and chances are, it will come in.'
