SD Guthrie Bhd, the world’s largest palm oil producer by acreage, saw its net profit more than double in the first quarter of 2025, reaching RM567 million, up from RM211 million in the same period last year.
The strong performance was driven by a significant boost in the upstream segment, which offset lower profits from the downstream arm.
For the three months ended March 31, 2025 (1Q25), the company reported revenue of RM4.82 billion, an 11% increase from RM4.34 billion in the previous year.
No dividend was declared for the quarter under review.
SD Guthrie expects CPO prices to soften in the near term, citing improved weather boosting supply and reduced biodiesel demand due to low crude oil prices.
While US tariffs are unlikely to directly affect Malaysian CPO, the group noted that they contribute to price volatility and could increase operational costs due to global supply chain disruptions.
Despite market uncertainty, the company anticipates a modest improvement in FFB output and sees growth opportunities in expanding its downstream footprint, industrial park development, and renewable energy.
“On a positive note, our industrial park growth pillar achieved a significant milestone with the recent signing of a tripartite agreement for the development of the group’s prime land in Bukit Pelandok, Negeri Sembilan, located within the Malaysia Vision Valley 2.0 growth corridor,” its group MD Datuk Mohamad Helmy Othman Basha said. — TMR
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