KUALA LUMPUR (Aug 11): SD Guthrie Bhd (KL:SDG) said its net profit nearly doubled in the second quarter, boosted by land sales and downstream earnings that offset lower revenue.
Net profit jumped to RM987 million in the quarter ended June 30, 2026 (2QFY2026) from RM505 million in the same quarter a year earlier, the world’s largest palm oil producer by acreage said in an exchange filing. Revenue for the quarter fell 4% year-on-year to RM4.94 billion.
“While we expand our industrial development and renewable energy businesses through strategic partnerships, we are strengthening the group’s earnings resilience, creating new growth engines and positioning Guthrie for sustainable long-term value creation,” said its president Mohd Haris Mohd Arshad.
During the quarter, SD Guthrie booked a profit of RM529 million after completing the sale of 935-acre land in Kulai, Johor to Eco Business Park 8 Sdn Bhd.
SD Guthrie owns 45% in the joint venture set up to develop an integrated industrial park with Eco World Development Group Bhd (KL:ECOWLD) and Permodalan Darul Ta'zim Sdn Bhd.
In the near- to medium term, tightening global supply and resilient demand are expected to elevate palm oil prices, SD Guthrie said.
“Supply-side pressures are likely to intensify” with El Niño weather conditions while demand will be underpinned by Indonesia's B50 biodiesel mandate and firm crude oil prices amid renewed geopolitical tensions, the company said.
The industrial development segment is expected to further strengthen its contribution to the group's earnings, supporting its diversification beyond plantations, SD Guthrie noted.
For the first six months of 2026, net profit totalled RM1.55 billion, a 44% increase when compared to the same first half of 2025, while revenue declined 4% year-on-year to RM9.63 billion.
An interim dividend of 11.18 sen per share was declared and payable on Nov 4.
“Overall, the group remains positive on its 2026 outlook, supported by favourable market dynamics, operational resilience, and strong execution momentum in its industrial development segment,” SD Guthrie added.