(From left) SD Guthrie Bhd group managing director Datuk Mohamad Helmy Othman Basha, chief financial officer Renaka Ramachandran, and group chief operating officer Mohd Haris Mohd Arshad at an earnings briefing on Thursday. Net profit rose to RM772 million for the fourth quarter ended Dec 31, 2024, from RM200 million a year earlier. (Photo by Mohd Izwan Mohd Nazam/The Edge)
KUALA LUMPUR (Feb 27): SD Guthrie Bhd (KL:SDG), the world’s largest palm oil producer by acreage, said its net profit nearly quadrupled in the final quarter of 2024, thanks to a surge in prices and land sales.
Net profit for the three months ended Dec 31, 2024 (4QFY2024) was RM772 million compared to RM200 million over the same period a year ago. SD Guthrie booked other income of RM355 million mainly from land sale, which helped during the quarter as revenue was largely flat at RM5.26 billion.
Production would improve from recent softness, thanks to “rehabilitation and yield-enhancing initiatives”, SD Guthrie said. Demand, meanwhile, is expected to remain steady, backed by Indonesia’s B40 mandate and strong demand for edible oils, the company said.
However, there could be “demand rationalisation and switching may occur as a result of palm oil’s prevailing price premium over other vegetable oils”, SD Guthrie flagged.
“Supported by strong fundamentals, the group will navigate through 2025 with caution, as the operating environment remains unpredictable,” said SD Guthrie chairman Tan Sri Nik Norzrul Thani Nik Hassan Thani.
The average selling prices of crude palm oil rose 21% to RM4,477 per tonne though production fell 4% year-on-year to 2.3 million tonne. Prices were 9% higher for the entire 2024 at RM4,101 per tonne though output was barely higher at 8.8 million tonnes.
For FY2024, SD Guthrie reported that its net profit climbed 16% to RM2.16 billion. The company’s other operating income, which includes land sales, was RM848 million last year. Revenue meanwhile was 9% higher at RM19.83 billion.
SD Guthrie has declared a final dividend of 11.71 sen per share together with an interim dividend of 4.65 sen per share. The total dividends declared in FY2024 were 16.36 sen per share, up from FY2023's 15.00 sen per share.
Shares of SD Guthrie closed 1.4% higher at RM4.97, giving the company a market capitalisation of RM34 billion following the results announcement.
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