SD Guthrie Berhad (SDG) Q2 2024 earnings summary

Executive summary

• Achieved strong year-over-year growth in revenue and profits, with 1H FY2024 net profit rising 39% to RM626 million, driven by higher Malaysian production and improved downstream performance.

• Recurring net profit for 2Q FY2024 surged 134% year-over-year, contributing to a quarterly net profit of RM415 million.

• Strategic expansion into renewable energy and industrial park co-development, including KIGIP and a Halal hub partnership.

• Recognized in the Fortune Southeast Asia 500, ranked 92nd, highlighting regional market presence.

Financial highlights

• 2Q FY2024 revenue rose 15% YoY to RM4,965 million; 1H FY2024 revenue up 11% YoY to RM9,307 million.

• 2Q FY2024 PBIT increased 19% YoY to RM629 million; 1H FY2024 PBIT up 21% YoY to RM1,005 million.

• PATAMI for 2Q FY2024 grew 9% YoY to RM415 million; 1H FY2024 PATAMI up 39% YoY to RM626 million.

• Basic EPS for 2Q FY2024 at 6.0 sen, up 9% YoY; 1H FY2024 at 9.1 sen, up 40% YoY.

• Net cash generated from operating activities for the half-year was RM1,005 million; net cash used in investing activities was RM846 million.

Outlook and guidance

• Prices expected to remain firm through year-end, supported by global economic recovery and sustained CPO demand.

• Malaysian plantation operations anticipated to continue improving due to rehabilitation and agronomic practices.

• KIGIP industrial park development on track, with groundbreaking targeted for end-August.

• Renewable energy vertical expanding, targeting 1 GW solar capacity and participation in LSS5.