PETALING JAYA — SD Guthrie Berhad (Guthrie or the Group) reported a net profit of RM560 million on the back of a profit before interest and tax (PBIT) of RM807 million in the first quarter of its financial year ending 31 December 2026 (1Q FY2026).
The Group’s overall performance was supported by stronger contributions from its various business segments. The Group’s Upstream segment recorded a PBIT of RM529 million despite being impacted by lower realised crude palm oil (CPO) and palm kernel (PK) prices, which registered, a 10 per cent and 8 per cent decline respectively from the previous corresponding quarter.
SD Guthrie International (SDGI), the Group’s Downstream segment, started the year on a strong note, recording a 43 per cent year-on-year (YoY) increase of PBIT amounting to RM109 million. The encouraging performance was underpinned by higher sales volumes and positive margin recovery in its Asia Pacific and European operations, alongside stronger contributions from joint ventures.
The Industrial Development segment delivered RM160 million in PBIT for 1Q FY2026 from an outright third-party land sale.
Chairman, Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani said:
“Amidst the ongoing conflict in the Middle East, Guthrie’s diversified portfolio delivered a resilient performance to record a good start to the year. The Group’s new leadership offers the stability on the back of a challenging macroeconomic backdrop and will continue to bring renewed momentum to fuel the Group’s growth ambitions.”
Group Managing Director, Mohd Haris Mohd Arshad said:
“Guthrie chalked up a commendable solid net profit for the first quarter and will look to continue improving profitability across our diversified portfolio for the remainder of this year. While market conditions remain unpredictable at best, the team is focused on what we can control – productivity, quality and costs – to sustain and build upon last year’s strong performance.
Whilst Guthrie is cautious in the challenging operating environment, we are well positioned to look ahead with confidence, leveraging on our strong balance sheet, sound strategies and effective execution.”
OUTLOOK FOR FY2026:
CPO prices are expected to remain supported in the near term, underpinned by weather-related supply risks and the conflict in the Middle East. The closure of the Strait of Hormuz has disrupted global supply chains, causing an increase in energy and fuel prices impacting direct and indirect costs, which include logistics, fertilisers and energy. The expansion of regional biodiesel mandates will structurally support CPO prices in the near term. However, uncertainties persist around the implementation readiness to support these mandates.
Guthrie continues to focus on operational discipline across its upstream estates, prioritising yield optimisation and cost management to navigate near-term volatility. The Downstream segment remains focused on margin protection, leveraging its integrated value chain and geographic diversification, to navigate shifting demand patterns across key markets. In parallel, the Industrial Development and Renewable Energy segments are expected to support longer-term earnings resilience and diversification.
The Group remains cautious on its outlook for FY2026 amidst an inherently volatile and policy-sensitive operating environment. —SD Guthrie
