KUALA LUMPUR (Feb 25): SD Guthrie Bhd (KL:SDG) said its net profit fell 35.75% in the fourth quarter to RM496 million from RM772 million a year earlier, weighed down by lower upstream and downstream divisions.

Revenue ended Dec 31, 2025 (4QFY2025), however, rose 4.59% to RM5.49 billion from RM5.26 billion.

The group declared a final dividend of 10.35 sen per share, bringing the total dividend for FY2025 to 18.10 sen per share, up from 16.36 sen in FY2024.

The decline in quarterly net profit was mainly due to a 7% drop in the average realised crude palm oil price and a 1% reduction in fresh fruit bunches (FFB) production to 2.29 million tonnes, said SD Guthries in its exchange filing.

The lower FFB output was attributed to reduced production from the group's operations in Indonesia, partially offset by improved production in Malaysia, Papua New Guinea and the Solomon Islands.

The downstream segment’s recurring profit before interest and tax (PBIT) declined 17% to RM128 million, mainly due to a higher share of losses from joint ventures.

Despite the softer fourth quarter, the group achieved a record net profit of RM2.5 billion for the full year, up 16% from RM2.16 billion in FY2024.

Full-year revenue increased 5.36% to RM20.90 billion from RM19.83 billion, driven by stronger performance in the group's upstream segment and contributions from its industrial development segment.

The upstream business accounted for 73% of the group’s PBIT of RM3.6 billion, supported by a 1% year-on-year increase in FFB production and higher average realised prices for CPO and palm kernel, which rose 4% and 33% respectively to RM4,254.00 and RM3,219.00 per tonne.

The industrial development segment contributed RM430 million to FY2025 PBIT, mainly from its share of profits from land sales to a tripartite joint venture company.

The downstream segment via SD Guthrie International recorded a PBIT of RM484.00 million, reflecting softer global demand, although improved margins in its Asia Pacific differentiated operations partially mitigated the impact of lower volumes.

Looking ahead, SD Guthrie expects CPO prices to remain range-bound in the near term, supported by slower supply growth and steady global demand for vegetable oils, although high inventory levels and the deferral of Indonesia’s B50 biodiesel mandate may exert some pressure.

Group managing director Mohd Haris Mohd Arshad said efforts to streamline and integrate the group’s value chain into a more unified operating model would enhance synergies, improve efficiencies and position the group to scale up more effectively, adding that it expects to deliver a satisfactory performance in FY2026.

Shares of SD Guthrie closed down three sen or 0.51% at RM5.86 on Wednesday, giving the group a market capitalisation of RM40.53 billion.