KUALA LUMPUR (May 7): SD Guthrie Bhd (KL:SDG), the world’s largest listed palm oil producer by planted acreage, reported a marginal decline in first-quarter profit as weaker earnings from its upstream plantation business offset stronger contributions from other operating segments. 

Net profit for the quarter ended March 31, 2026 (1QFY2026) slipped to RM560 million from RM567 million a year earlier, according to the group in a filing with Bursa Malaysia on Thursday. 

Revenue fell 2.6% year-on-year to RM4.69 billion, compared with RM4.82 billion in the corresponding quarter last year.

“While market conditions remain unpredictable, the team is focused on what we can control — productivity, quality and costs — to sustain and build upon last year’s strong performance,” said group managing director Mohd Haris Mohd Arshad in a statement accompanying the results announcement.

The current quarter decline was mainly due to lower profitability in the upstream segment, which saw recurring profit before interest and tax fall 30% to RM529 million. SD Guthrie blamed this to the lower average realised prices for crude palm oil (CPO) and palm kernel, as well as reduced fresh fruit bunch production.

“While Guthrie is cautious in the challenging operating environment, we are well positioned to look ahead with confidence, leveraging on our strong balance sheet, sound strategies and effective execution,” Mohd Haris said. He added that the group will also continue improving profitability across its diversified portfolio for the remainder of this year. 

No dividend was declared for the quarter.

Moving forward, SD Guthrie noted that CPO prices are expected to remain supported in the near term due to weather-related supply risks and geopolitical tensions in the Middle East which have pushed up global energy and fuel prices, increasing operating costs across logistics, fertiliser and energy-related activities.

At the same time, expansion of regional biodiesel mandates will structurally support CPO prices in the near term. However, uncertainties persist around the implementation readiness to support these mandates, the group added. 

Its downstream segment will continue to focus on protecting margins through its integrated supply chain and diversified geographical presence, as demand patterns shift across key markets. Meanwhile, the industrial development and renewable energy segments are expected to support longer-term earnings resilience and diversification.

Shares in SD Guthrie were up one sen, or 0.16%, to RM6.17 during Thursday’s midday trading break, valuing the company at RM42.67 billion.