SD Guthrie Bhd avg CPO price 4,156 ringgit

SD Guthrie Bhd avg CPO price 4,156 ringgit

SD Guthrie Reports Strong First Half FY2025 Performance Amid Elevated CPO Prices

SD Guthrie Berhad (Guthrie) reported a net profit of RM1.07 billion for the first half of FY2025 (1H FY2025), a 71% year-on-year (YoY) increase, driven by a surge in crude palm oil (CPO) prices and improved upstream operations. The Group's average realized CPO price rose 3% YoY to RM4,146 per metric tonne (MT), while palm kernel (PK) prices jumped 50% YoY to RM3,247 per MT according to financial results. These gains were supported by higher global demand for vegetable oils and improved production efficiency.

Guthrie's upstream segment, which accounts for palm oil cultivation and milling, saw profits double YoY, reflecting stronger commodity prices and a 4% increase in fresh fruit bunch (FFB) production across its operations in Malaysia, Indonesia, Papua New Guinea, and Solomon Islands as reported. The Group attributed the production growth to ongoing rehabilitation efforts and optimized labor management.

However, the downstream segment, SD Guthrie International (SDGI), faced challenges in 2Q FY2025, with a 44% YoY decline in profit before interest and tax (PBIT) to RM126 million. This was due to lower demand and tighter margins in Asia Pacific and Europe, though Oceania operations offset some losses with higher sales volumes and margins according to the report.

Guthrie's leadership emphasized resilience amid a volatile global market. Chairman Tan Sri Dr Nik Norzrul Thani highlighted progress in operational excellence initiatives and new business pillars, including industrial development and renewables, as key drivers for long-term stability as stated.

Looking ahead, the Group anticipates CPO price volatility in the second half of FY2025 due to peak output cycles, macroeconomic uncertainties, and shifting trade policies. Despite these risks, Guthrie expects improved FFB production and continued momentum in its diversified operations to bolster performance according to the financial results.

The results underscore Guthrie's ability to capitalize on favorable market conditions while navigating sector-specific challenges through strategic diversification and operational efficiency.

(https://www.sdguthrie.com/press-releases/sd-guthrie-1hfy2025-financial-results): SD Guthrie 1H FY2025 Financial Results, 7 August 2025.