KUALA LUMPUR: SD Guthrie Bhd heads into its next fiscal year with rising confidence after first-half net profit surged 44% to RM1.55 billion.
The plantation giant’s earnings leap stems largely from stronger downstream contributions and sustained momentum in industrial development. Yet revenue slipped to RM9.63 billion from RM9.99 billion a year earlier.
Second-quarter results proved even sharper. Net profit nearly doubled to RM987 million, up from RM505 million in the same stretch last year. Revenue for the quarter came in at RM4.94 billion versus RM5.17 billion previously.
The industrial development arm carried much of the weight. It booked a pre-tax profit of RM689 million, powered by a RM529 million gain from completing the sale of 935 acres at Kulai Estate in Johor to EBP 8. Another third-party land disposal added further upside.
Downstream operations performed well too. Pre-tax profit climbed 21% to RM245 million, lifted by stronger bulk operations across Asia Pacific. Better margins, higher demand and reduced losses from joint ventures all contributed. Those gains offset weaker results from differentiated refineries in Asia Pacific and Europe, where volumes and pricing softened.
Upstream results told a different story. That division saw pre-tax profit fall 18% to RM1.16 billion, pressured by lower crude palm oil and palm kernel prices. Fresh fruit bunch production also dipped 2% to 4.2 million tonnes, dragged down by output declines in Malaysia, Papua New Guinea and Solomon Islands. Improved Indonesian production only partially cushioned the drop.
Group CEO Mohd Haris Mohd Arshad framed the half-year showing as proof of the company’s broader transformation. He pointed to industrial development and renewable energy expansion as new engines for long-term value creation.
Shareholders will see an interim dividend of 11.18 sen per share, with entitlement fixed for Oct 21, 2026, and payment following on Nov 4, 2026.
Separately, SD Guthrie plans to sell 556.96 acres of agricultural land in Kulai, Johor, to Sime Darby Property (Kulai) Sdn Bhd for roughly RM418.51 million. The company said the deal aligns with its strategy to unlock value from strategic landbank and diversify beyond palm oil. The plots sit within the Johor-Singapore Special Economic Zone, marking them as prime development candidates.
