SD Guthrie Berhad (SDG) Q1 2025 earnings summary

Executive summary

• Net profit surged 169% year-over-year to RM567 million in 1Q FY2025, driven by strong upstream segment performance and higher realised CPO and PK prices, despite weaker downstream results.

• Revenue increased 11% year-over-year to RM4,817 million, supported by higher average realised prices and increased FFB production in Indonesia and PNG/SI.

• Upstream segment delivered robust growth, offsetting margin compression and lower demand in the downstream segment, especially in Europe.

• Strategic initiatives included the first tariff-free RSPO-certified palm oil shipment to the UK, a tripartite agreement for industrial park development in Malaysia Vision Valley 2.0, and progress in renewable energy projects.

• Finance costs declined 32% year-over-year due to lower borrowings and reduced average interest rates.

Financial highlights

• Revenue: RM4,817 million (+11% YoY).

• Net profit (PATAMI): RM567 million (169% YoY).

• PBIT: RM818 million (+118% YoY).

• Basic EPS: 8.2 sen (>100% YoY).

• Upstream recurring PBIT: RM753 million (>100% YoY); Downstream recurring PBIT: RM76 million (-37% YoY).

Outlook and guidance

• CPO prices expected to soften in the near term due to increased production and weaker biodiesel demand.

• Modest improvement in FFB production anticipated, supported by operational excellence and yield initiatives.

• Volatility anticipated from global trade realignment, US tariff uncertainty, and regulatory changes.

• Focus remains on expanding downstream footprint and pursuing growth in industrial park development and renewable energy, with solar plant commissioning on track for 4Q FY2025.