SD Guthrie Berhad (SDG) Q4 2024 earnings summary

Executive summary

• Net profit for FY2024 rose 16% year-over-year to RM2,164 million, with Q4 net profit nearly quadrupling, driven by strong upstream segment performance, higher realised CPO prices, and non-recurring gains from land disposals in Malaysia.

• Recurring PBIT surged 47% year-over-year to RM2,653 million, mainly from Malaysian upstream operations, with recurring PBIT more than tripling to RM973 million.

• Downstream segment delivered robust results, with Asia Pacific bulk and European operations offsetting weaker differentiated segment margins.

• Non-recurring profits of RM605 million were mainly from land disposals, mitigating impairment charges.

Financial highlights

• FY2024 revenue increased 8% year-over-year to RM19,831 million; Q4 revenue was RM5,257 million.

• FY2024 PATAMI: RM2,164 million (up 16% YoY); Q4 PATAMI: RM772 million (nearly quadrupled YoY).

• Basic EPS for FY2024: 31.3 sen (up from 26.9 sen in FY2023).

• Final dividend of 11.71 sen per share; total FY2024 dividend: 16.36 sen (up from 15.00 sen in FY2023).

• Average CPO selling price for FY2024: RM4,101/MT (up 9% YoY); FFB production: 8.77 million MT (up 1% YoY); OER: 20.97% (down from 21.18%).

Outlook and guidance

• CPO demand expected to remain steady in 2025, supported by Indonesia's B40 mandate and strong edible oil demand.

• Vegetable oil price volatility anticipated due to weather, geopolitical risks, and tariff concerns.

• Improved FFB production expected from rehabilitation and yield-enhancing initiatives.

• Focus on operational excellence, downstream expansion, and execution of renewable energy and industrial development projects.

• Group expects satisfactory performance in FY2025 barring unforeseen circumstances.