SD Guthrie, formerly known as Sime Darby Plantation (SD Plantation), has reported a net profit of RM211M (US$447M) in the first quarter ended 31 March – three times the net profit of RM69M (US$14.6M) recorded in the same quarter of the previous year.
In the same period, revenue increased from RM4.07bn (US$86M)to RM4.34bn (US$91M) and the company recorded a 9% year-on-year increase in fresh fruit bunch (FFB) production, SD Guthrie said on 31 May.
The group, previously known as Sime Darby Plantations, rebranded to SD Guthrie after receiving shareholders' approval on 28 May.
Group managing director Mohamad Helmy Othman Basha said the group’s performance had improved and it had successfully turned around its Malaysian upstream operations.
“In the last two years, we have achieved much in various areas – from being independently cleared of forced labour, recognised for our standards of integrity and governance and to being the first palm oil company to have net zero targets validated by the SBTi (Science-Based Targets Initiative),” he said.
The company said it expected the price of crude palm oil (CPO) to remain supported due to continued geopolitical tensions and the anticipated effects of extreme weather events in producing countries.
In its own operations, the group said it expected continued growth in fresh fruit bunch (FFB) production in 2024 following efforts to rehabilitate its Malaysian upstream operations and accelerate its mechanisation and automation.
“The group will continue to focus on its efforts to reduce costs through various transformational initiatives…,” the company said in a statement.
The group said it was “cautiously optimistic” as it looked ahead to the current marketing year.
Prior to the name change, SD Plantation had been subject to a brand and trademark licensing agreement to use the ‘Sime Darby’ brand since its demerger from its former parent company, Sime Darby Berhad, six-and-a-half years ago.
This had imposed significant constraints on SD Plantation’s ability to make its own strategic decisions for the brand and business, the company said when it first reported on the proposal.
Additionally, the brand SD Guthrie was a central part of SD Plantation’s history, referencing its recent past as part of the Sime Darby group and its origins more than 200 years ago with Alexander Guthrie, who founded Guthrie & Co, which started out as a trading house in Singapore in 1821.
