SD Guthrie Berhad (SDG) Q3 2024 earnings summary

Executive summary

• Achieved strong year-to-date performance in Malaysian upstream operations, with higher CPO and PK prices driving recurring PBIT up 27% YoY to RM1.8 billion for 9M FY2024, while net profit declined 16% due to lower non-recurring gains and Q3 net profit fell 37% YoY to RM766 million.

• Revenue for 3Q FY2024 rose 10% YoY to RM5,267 million; 9M revenue up 11% YoY to RM14.574 billion.

• Strategic expansion into industrial park development and renewable energy, including a major JV for a green industrial park in Johor.

• Recognized for ESG leadership, winning Silver at The Edge ESG Awards and ranking 3rd in the 2024 SPOTT Palm Oil Assessment.

Financial highlights

• Recurring PBIT for 9M FY2024 increased 27% YoY to RM1,797 million; non-recurring PBIT fell 67% YoY, mainly from land disposals.

• PATAMI for 9M FY2024 declined 16% YoY to RM1,392 million; basic EPS down 16% YoY.

• Q3 2024 operating profit was RM1,146 million, down 30% YoY; nine-month operating profit was RM2,156 million, down 13%.

• Finance costs reduced by 24% YoY due to lower borrowings and interest rates.

• Net cash from operating activities for nine months was RM1,629 million.

Outlook and guidance

• CPO prices expected to remain firm due to tight supply from Indonesia and biodiesel policy changes, with positive results anticipated for the remainder of FY2024, barring unforeseen circumstances.

• Fed rate cuts and Chinese fiscal stimulus may provide some support to the sector.