SD Guthrie’s Recurring PBIT Up 47% to RM2.65 billion in FY2024

• The Group’s Upstream and Downstream business outperformed in FY2024 compared to FY2023
• Buoyant crude palm oil prices and strong Malaysian upstream operations bolstered profits

Petaling Jaya, 20 February 2025 - SD Guthrie Berhad (SD Guthrie or the Group), formerly known as Sime Darby Plantation Berhad, chalked up a net profit of RM772 million in the fourth quarter of the financial year ended 31 December 2024 (4Q FY2024) bringing its full year net profit for the year to RM2.16 billion, a 16% year-on-year increase from FY2023.

On a recurring basis, the Group’s FY2024 Profit Before Interest and Tax (Recurring PBIT) surged 47% year-on-year (YoY) to RM2.65 billion from RM1.80 billion in FY2023, driven primarily by the strong performance of its Malaysian upstream business. Upstream Malaysia’s recurring PBIT more than tripled YoY to RM973 million, from RM275 million in the previous year, as focused efforts to rehabilitate and restore operations to previous levels yielded positive results, enabling the Group to capitalise on strong crude palm oil prices (CPO). The Group’s average realised CPO and palm kernel (PK) prices were 9% and 38% higher YoY, to RM4,101 per metric tonne (MT) and RM2,418 per MT, respectively. Minamas Plantations and New Britain Palm Oil also performed better in FY2024 than in FY2023, despite challenging operating conditions.

The Group’s fourth quarter net profit of RM772 million nearly quadrupled compared to the previous corresponding quarter.

SD Guthrie International (SDGI), the Group’s downstream segment, reported a PBIT of RM579 million for FY2024, driven by stronger profits from the Asia Pacific bulk operations. Europe continues to be the primary driver of SDGI’s performance, delivering strong margins.

The Group’s non-recurring profits for FY2024 of RM605 million largely comprised net gains from land disposals in Malaysia, which mitigated the impairment charges on assets in Malaysia and a subsidiary held for sale in Indonesia.

Key Highlights

Chairman, Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani said:

"Supported by strong fundamentals, the Group will navigate through FY2025 with caution, as the operating environment remains unpredictable. Our geographically diverse and integrated operations should stand us in strong stead, while the foundations are laid to kickstart our new growth pillars."

Group Managing Director, Datuk Mohamad Helmy Othman Basha said,

“Our financial performance reflects the discipline, diligence and determination it has taken to turn the Malaysian operations around, which has resulted in far improved productivity. To drive further growth, the latest acquisition of an equity stake in Netherlands-based Marvesa Supply Chain Services B.V. strengthens our downstream footprint in Europe and unlocks opportunities for us to grow in the non-food segment, particularly animal feed and biofuel.
On the renewable energy and industrial park growth pillars, we are working closely with our strategic partners, progressing towards meeting project execution milestones. These milestones reflect our commitment to operational excellence, and dedication to sustainable value creation for our stakeholders."

OUTLOOK FOR FY2025:

While CPO demand is expected to remain steady arising from Indonesia’s announced B40 biodiesel ramp up and strong demand for edible oils, demand rationalisation and switching may occur as a result of palm oil’s prevailing price premium over other vegetable oils. Other than demand, vegetable oil price volatility is expected to persist in 2025 due to unpredictable weather conditions affecting production, uncertainties arising from continued geopolitical risks and concerns of tariff escalations impacting the global economy.

The Group anticipates improved FFB production from its rehabilitation and yield-enhancing initiatives, and will remain vigilant for potential regulatory or policy changes that could disrupt the global vegetable oil supply-demand balance. In parallel with efforts to enhance operational excellence in the upstream segment and expand its downstream footprint, the Group is also focused on achieving key execution milestones in its renewable energy and industrial development projects.

Barring any unforeseen circumstances, the Group expects to perform satisfactorily in FY2025.

DIVIDEND:

The Group has declared a final dividend of 11.71 sen per share, which together with the interim dividend of 4.65 sen per share, translates to a total single tier dividend of 16.36 sen per share for FY2024. The total dividends declared in FY2024 increased by 1.36 sen compared to FY2023’s total dividends of 15.00 sen per share.