KUALA LUMPUR: SD Guthrie Bhd's net profit surged threefold to RM211 million in the first quarter ended Mar 31, 2024 (Q124) versus RM69 million posted in the same period last year supported by an improved fresh fruit bunch (FFB) production.
The group posted a nine per cent increase year-on-year (YoY) in FFB production during the period, underpinned by a 33 per cent increase in its Malaysian operations.
The company noted the improved performance was the result of intensive rehabilitation efforts, supported by the regularisation of labour requirements.
The group's average realised crude palm oil (CPO) price of RM3,880 per tonne was relatively flat YoY, whilst average realised palm kernel (PK) prices of RM1,940 per tonne was eight per cent higher YoY, as compared to the previous corresponding period.
Revenue for the quarter under review climbed seven per cent YoY to 4.34 billion compared to RM4.07 billion a year ago.
SD Guthrie's downstream arm, SD Guthrie International, registered a profit before interest and tax (PBIT) of RM121 million in Q1 2024, up 78 per cent YoY driven by higher volume demand for bulk and differentiated products in the group's Asia Pacific refineries and improved margins in Europe, which mitigated the lower profit contribution from its joint ventures.
"Now that we are in a position to craft our own direction, I am excited for what the future holds for us and all our stakeholders. "With the rebranding, we are exploring new strategies that will take the company into an exciting and dynamic future. I am confident that with the proactive mindset of our people, we will continue to deliver value to our shareholders," said chairman Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani.
In the near term, the group expects CPO price to remain supported due to continued geopolitical tensions and the anticipated effects of extreme weather events in producing countries which may impact supply of vegetable oils globally.
"SD Guthrie started the year on a stronger footing, registering improved performance and successfully turning around its Malaysian upstream operations," group managing director Datuk Mohamad Helmy Othman Basha said.
"In the last two years, we have achieved much in various areas – from being independently cleared of forced labour, recognised for our standards of integrity and governance and to being the first palm oil company to have net-zero targets validated by the SBTi. With all this in place, we are well positioned to enter a new era for SD Guthrie," he added.
The group, previously known as Sime Darby Plantations, rebranded to SD Guthrie after receiving shareholders' approval on May 28.