KUALA LUMPUR (Aug 21): SD Guthrie Bhd (KL:SDG), formerly known as Sime Darby Plantation Bhd, on Wednesday reported a 9% gain in net profit for the second quarter, thanks to higher prices and output as well as better downstream margins.
Net profit for the three months ended June 30, 2024 (2QFY2024) was RM415 million, compared with RM380 million a year earlier, the world's largest palm oil producer by acreage said in an exchange filing. Revenue for the quarter rose 15.33% to RM4.97 billion from RM4.31 billion for 2QFY2023.
Prices of crude palm oil (CPO) and palm kernel (PK) will remain firm until year end, in line with global economic recovery, the company said. “Expectations of sustained demand are also expected to lend support to prices, as it (palm oil) remains competitive compared to other vegetable oils,” it noted.
SD Guthrie also expects its plantation operations to continue to register improvements, especially in Malaysia, following the group’s intensive rehabilitation efforts and enhanced agronomic practices.
The upstream segment — which produces CPO and PK — posted a profit before interest and tax of RM424 million, more than double the RM188 million for the same quarter a year ago.
The average selling price per metric ton for CPO rose 7% to RM4,029, while the company realised an average of RM2,166 for PK, an increase of 23%. Production meanwhile expanded 8% to 2.20 million metric tons. The oil extraction rate, or yield, fell to 20.82% from 21.21%.
In the downstream segment, profit before interest and tax was higher at RM225 million against RM124 million for the same quarter last year, mainly due to higher margins achieved in all regions from better prices, higher sustainability premiums and an improved product mix.
The company also declared an interim dividend of 4.65 sen per share, up 1.4 sen from the same quarter last year, payable on Nov 15.
For the first half ended June 30, 2024 (1HFY2024), net profit jumped 39.42% to RM626 million against RM449 million for the same period a year ago, while revenue grew 11.14% to RM9.31 billion, from RM8.37 billion for 1HFY2023.
Shares in SD Guthrie settled 2.17% or 10 sen lower at RM4.51 on Wednesday, giving the group a market capitalisation of RM31.19 billion, ahead of the results announcement.