Latest news with #SDGuthrieBhd
New Straits Times
08-05-2025
- Business
- New Straits Times
SD Guthrie's Q1 earnings meet expectations; HLIB ups forecasts on normalisation outlook
KUALA LUMPUR: SD Guthrie Bhd's earnings in the first quarter ended March 31, 2025 (Q1 2025) came in within research firms' expectations, as its earnings are expected to normalise in coming quarters due to lower crude palm oil (CPO) prices. Hong Leong Investment Bank Bhd (HLIB) raised its earnings forecasts for the company by 4.8 per cent, 6.4 per cent and 4.5 per cent for financial years 2025 (FY25), FY26 and FY27, respectively. The higher forecasts reflect higher pre-tax earnings margin assumptions for SD Guthrie at the downstream segment and the recalibration of the earnings model. It also remained optimistic on the company achieving fresh fruit bunch (FFB) output growth for FY25, driven primarily by sustained recovery in Indonesia and Papua New Guinea. "That said, uncertainties persist over the pace of recovery for Malaysia due to continued adverse weather conditions," said the firm. HLIB maintained a 'Buy' call on the stock with a higher target price (TP) of RM5.17. SD Guthrie's net profit in Q1 2025 more than doubled to RM550 million, boosted mainly by marginally higher FFB output, higher realised palm product prices, and lower finance costs. In a separate note, RHB Investment Bank Bhd (RHB Research) also considered SD Guthrie's earnings to be in line with its expectations in light of the moderating CPO prices. It noted output should improve in the coming quarter ahead of the peak output season in the second half of 2025. "We still like SD Guthrie for its new earnings catalyst, coming from land monetisation and the renewables segment," it said. It added that SD Guthrie's downstream margin slipped to 1.8 per cent in quarter-on-quarter, mainly due to weaker profits at its bulk segment as a result of margin compression and lower demand. "While SD Guthrie expects margins to recover in the coming quarters, we choose to remain wary and trim our FY25-27 margin assumption accordingly." The firm maintained 'Buy' on SD Guthrie with a TP of RM5.65. Meanwhile, CIMB Securities maintained its earnings forecasts for SD Guthrie, which took into account weaker earnings in the upcoming quarters. It said that the CPO price for July delivery on the Bursa Derivatives market is currently trading at RM3,754 per tonne, which is about 17 per cent lower than the RM4,576 per tonne achieved by SD Guthrie in Q1 2025. Given the lack of near-term catalysts, the firm downgraded its call on the stock to 'Hold' from 'Buy" with a lower TP of RM5.06 from RM5.50 previously. "We expect CPO prices to trend lower in Q2 2025 and Q3 2025 and are cautious that the recent US reciprocal tariffs could dampen demand for processed palm oil and delay land monetisation plans," it said.
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 Sun
07-05-2025
- Business
- The Sun
SD Guthrie first-quarter net profit surges 169% year-on-year to RM567 million
PETALING JAYA: In a strong start to the financial year, SD Guthrie Bhd, formerly known as Sime Darby Plantation Bhd, registered a net profit of RM567 million in the first quarter of its financial year ending Dec 31, 2025 (Q1'25), an increase of 169% from RM211 million in the corresponding period of 2024 (Q1'24). The group's profit before Interest and tax (PBIT) increased 118% to RM818 million year-on-year (y-o-y), underpinned by the robust performance of the upstream segment, which mitigated the decline in the downstream segment. The upstream segment gained from higher y-o-y average realised crude palm oil (CPO) and palm kernel (PK) prices, as well as increased fresh fruit bunch (FFB) production. The group's realised CPO and PK prices averaged RM4,576 and RM3,342 per metric ton (MT) respectively, a corresponding increase of 18% and 72%. FFB production in the group's Indonesian operations rose by 11% while production in Papua New Guinea and Solomon Islands improved by 10%, cushioning the 7% decline in the group's Malaysian operations. SD Guthrie International (SDGI), the group's downstream arm, recorded a lower PBIT of RM76 million in Q1'25, representing a 37% y-o-y decline. SDGI's performance was impacted by lower margins in the bulk and differentiated product segments, as well as weaker demand in its European and trading operations. This, however, was partially mitigated by better performance and higher profits from its Asia-Pacific operations. Chairman,Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani said: 'The uncertain operating environment, due to persistent inflationary pressures fuelled by volatile monetary and trade policies, as well as continuing geopolitical tensions, presents challenges that the group will navigate with caution over the short and medium terms. Despite this, I firmly believe the group has the necessary resilience and capability to face headwinds, just as we have in the past, underscoring the wealth of experience and unwavering commitment of our management and employees.' Group managing director Datuk Mohamad Helmy Othman Basha said: '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 geopolitical conditions that may require strategic shifts to keep the group on track for a strong FY2025.' On a positive note, he added that its industrial park growth pillar has attained a milestone with the recent signing of a tripartite agreement for the development of the group's prime land in Bukit Pelandok, Negeri Sembilan, within the country's Malaysia Vision Valley 2.0 growth area. The company said the CPO price 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. Whilst tariffs announced by the United States may have minimal direct impact on Malaysian CPO, it has created uncertainty and volatility of prices across all vegetable oil markets. In addition to price uncertainty, the potential disruption in the global supply chain could further lead to an overall increase in operational costs. Amid rising market volatility, the group expects modest improvement in FFB production, driven by its ongoing operational excellence and yield-enhancing initiatives. While remaining vigilant to potential regulatory changes and international trade developments that could impact broader macroeconomic conditions, SD Guthrie believes that there are opportunities to expand its downstream footprint. It 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 FY2025 and maintains a cautious outlook on the back of a challenging and unpredictable environment.
New Straits Times
07-05-2025
- Business
- New Straits Times
SD Guthrie's Q1 net profit soars to RM567mil on strong upstream performance
KUALA LUMPUR: SD Guthrie Bhd's net profit more than doubled to RM567 million in the first quarter ended March 31, 2025 (Q1 2025) from RM211 million in Q1 2024 backed by robust performance of the upstream segment. Revenue for the period climbed 11 per cent year-on-year (YoY) to RM4.82 billion compared to RM4.34 billion a year ago. The upstream segment gained from higher YoY average realised crude palm oil (CPO) and palm kernel prices, as well as increased fresh fruit bunch (FFB) production. The group's realised CPO prices averaged RM4,576 per tonne, an increase of 18 per cent, while palm kernel prices jumped 72 per cent to RM3,342 per tonne. It noted that FFB production in the group's Indonesian operations rose 11 per cent, while production in Papua New Guinea and the Solomon Islands improved by 10 per cent, cushioning the seven per cent decline in the Malaysian operations. Meanwhile, the group's downstream arm SD Guthrie International (SDGI) logged a lower pre-tax profit of RM76 million in the quarter, down 37 per cent YoY. SDGI was impacted by lower margins in the bulk and differentiated product segments, as well as weaker demand in its European and trading operations. This was partially mitigated by better performance and higher profits from its Asia Pacific operations. SD Guthrie chairman Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani said the group will remain cautious over the short and medium term amid the uncertain operating environment due to persistent inflationary pressures fuelled by volatile monetary and trade policies, as well as continuing geopolitical tensions. "Despite this, I firmly believe the group has the necessary resilience and capability to face headwinds, just as we have in the past, underscoring the wealth of experience and unwavering commitment of our management and employees," he said in a statement. Moving forward, the group remains focused and resilient in delivering its performance this year. CPO price is expected to soften in the near term mainly due to a rebound in palm oil production as a result of improved weather conditions. Additionally, demand from biodiesel blending is expected to weaken given the current low crude oil price environment. "As the year progresses, we are cognisant of prevailing economic and geopolitical conditions that may require strategic shifts to keep the group on track for a strong 2025. "On a positive note, our industrial park growth pillar has attained a noteworthy milestone with the recent signing of a tripartite agreement for the development of the group's prime land in Bukit Pelandok, Negeri Sembilan, within the country's Malaysia Vision Valley 2.0 growth area," said group managing director Datuk Mohamad Helmy Othman Basha.
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.
