PETALING JAYA: SD Guthrie Bhd
is guiding for a “satisfactory” performance in the financial year ending Dec 31, 2026 (FY26), after delivering a record net profit in FY25 despite a weaker fourth quarter (4Q25).
In a statement, the plantation group said crude palm oil (CPO) prices are expected to remain range-bound in the near term, with structural factors supporting market stability.
While elevated inventory levels and the deferral of Indonesia’s B50 biodiesel mandate could exert some pressure, it said slower supply growth and steady global demand for vegetable oils are expected to help balance prices.
It added that palm oil’s price competitiveness is anticipated to sustain given seasonal restocking in key markets such as India, the Middle East and China.
“Barring unforeseen circumstances, the group expects to deliver a satisfactory performance in FY26,” SD Guthrie said.
For 4Q25, SD Guthrie’s revenue rose 4.6% to RM5.5bil from RM5.26bil in the previous corresponding quarter. Net profit fell 35.8% to RM496mil from RM772mil a year earlier.
The group said the lower quarterly earnings were mainly due to reduced profitability in the upstream segment and fewer non-recurring transactions, partially offset by stronger downstream performance.
Despite the softer quarter, SD Guthrie posted a record net profit of RM2.5bil for FY25, up 15.7% from RM2.16bil in FY24, supported by revenue growth of 5.4% to RM20.9bil from RM19.83bil.
SD Guthrie said the full-year performance was driven by improved results from the upstream segment and the new industrial development segment.
The upstream business accounted for 73% of group profit before interest and tax of RM3.6bil, underpinned by improvements across key operational drivers.
For FY25, the group’s fresh fruit bunch production increased 1% year-on-year (y-o-y), whilst the average realised crude palm oil (CPO) and palm kernel prices improved by 4% and 33% respectively y-o-y, to RM4,254 and RM3,219 per tonne.
The industrial development segment contributed RM430mil to FY25 PBIT, mainly from its share of profits arising from land sales to a tripartite joint venture.
The downstream segment recorded earnings of RM484mil, down 16% from RM579mil a year earlier, reflecting weaker demand across most regions. This was partly offset by improved performance in Oceania and the Asia-Pacific differentiated refinery operations, supported by higher sales volumes.
Overall, finance costs for FY25 fell 40%, driven by lower borrowings and reduced average interest rates of 4.7% per annum, compared with 5.2% previously.
SD Guthrie declared a final dividend of 10.35 sen per share, bringing total dividends for FY25 to 18.10 sen per share, up from 16.36 sen in FY24.
