SD Guthrie Berhad (SDG) Q2 2025 earnings summary

Executive summary

• Net profit for 1H FY2025 surged 71% YoY to RM1.07 billion, with Q2 net profit up 22% to RM505 million, driven by strong upstream performance and higher realised CPO/PK prices, despite weaker downstream results.

• Revenue rose 4% YoY to RM5,169 million for Q2 FY2025 and 7% to RM9,986 million for 1H FY2025.

• Upstream segment profits doubled YoY, supported by increased FFB production and improved extraction rates.

• Downstream segment profits declined due to margin compression and weaker demand, partially offset by improved Oceania operations.

• Strategic partnerships and expansion in industrial development and renewables signal diversification and growth.

Financial highlights

• Recurring PBIT climbed 57% YoY to RM1.62 billion for 1H FY2025; Q2 recurring PBIT up 24% to RM804 million.

• Realised CPO price for 1H FY2025 increased 10% YoY to RM4,339/MT; PK price up 50% to RM3,247/MT.

• Upstream segment delivered higher FFB production (+4% YoY in Q2, +3% in 1H) and improved extraction rates (+0.37 p.p. YoY in Q2).

• Downstream PBIT declined 44% YoY in Q2 and 42% in 1H due to margin and demand challenges.

• Interim dividend of 7.75 sen per share declared, representing a 50% payout of 1H FY2025 recurring PATAMI.

Outlook and guidance

• CPO prices expected to remain volatile in 2H FY2025 due to peak output, improved weather, macroeconomic uncertainty, and global trade headwinds.

• FFB production anticipated to improve in H2 2025, supported by better operating conditions and productivity initiatives.

• Diversification into renewable energy and industrial development expected to enhance long-term performance.

• EUDR implementation may boost sustainable palm oil demand.