KUALA LUMPUR: SD Guthrie Bhd's net profit rose 9.0 per cent to RM415 million in the second quarter of financial year 2024 (2QFY24) from RM380 million in the same period last year.
The palm oil producer posted a stronger revenue at RM4.97 billion, up 15 per cent from RM4.3 billion.
The company declared an interim dividend of 4.65 sen per share for FY24 that will be paid on Nov 15.
As a result, SD Guthrie posted a net profit of RM626 million from RM449 million while the revenue stood at RM9.3 billion compared with RM8.37 billion a year ago.
In a statement today, the company said the improved operational performance was driven by better fresh fruit bunch (FFB) production, lower operational costs and sustained strong crude palm oil (CPO) and palm kernel (PK) prices.
It added that its downstream arm, SD Guthrie International (SDGI) delivered strong results, registering a marked increase in year-on-year profits.
This was largely attributable to higher margins achieved in all regions, primarily due to better prices, higher sustainability premiums and improved product mix.
Group managing director Datuk Mohamad Helmy Othman Basha said SD Guthrie's involvement in the development of Kerian Integrated Green Industrial Park in Perak as well as the next phase of Enstek Industrial Park in Negri Sembilan reflects the huge opportunities that lie ahead.
He said the company continues to pursue opportunities in new business verticals, to enhance the value of its land.
On the outlook for FY24, SD Guthrie expects prices to remain firm until year end in line with global economic recovery.
Expectations of sustained CPO demand is also expected to lend support to prices as it remains competitive compared to other vegetable oils, it said.
"The plantation operations is expected to continue register improvements, especially from its Malaysian operations following the success of intensive rehabilitation efforts as well as enhanced agronomic practices.
"This clear focus on the core business segments will be reinforced even as SD Guthrie actively pursues opportunities in new business verticals, embarking into industrial park development in various states and renewable energy, particularly solar farms," it said.