SD Guthrie industrial profit jumps 78% to RM770m in first nine months of 2026

SD Guthrie Bhd’s industrial development profit before interest and tax rose 78% year-on-year to RM770 million in the first nine months of 2026, contributing about 24% of group PBIT. Group net profit for the period increased 15.6% to RM2.32 billion, despite a slight dip in revenue.

PETALING JAYA (Nov 5): SD Guthrie Bhd’s industrial development profit before interest and tax (PBIT) rose 78% year-on-year to RM770 million in the first nine months of 2026, even as lower land disposal contributions weighed on its third-quarter performance. The segment accounted for about 24% of group PBIT of RM3.25 billion for the nine-month period, based on figures in the company’s results statement on Thursday (Nov 5). Group PBIT increased 13% from RM2.89 billion a year earlier, it said in a Bursa Malaysia filing on Thursday (Nov 5).

The stronger cumulative performance contrasted with the July–September quarter, when industrial development profit declined because of lower contributions from land disposals, The Star reported, citing the group’s Bursa Malaysia filing. Group net profit fell 17.3% to RM773 million for the third quarter ended Sept 30, 2026 (3QFY2026), from RM935 million a year earlier. Revenue eased 0.3% to RM5.39 billion from RM5.41 billion.

For the nine months, however, net profit increased 15.6% to RM2.32 billion from RM2.01 billion, despite revenue declining 2.4% to RM15.03 billion. Higher contributions from upstream, midstream and industrial development supported the cumulative performance. President and group CEO Mohd Haris Mohd Arshad said plantations remained central to the group’s strategy as it expanded complementary businesses.

The group’s industrial expansion includes two separate Bukit Kerayong partnerships in Selangor, involving different land parcels, partners and ownership structures. The more recent venture, announced on Oct 29, involves approximately 657.09ha (1,623 acres) of freehold land proposed for a light-to-medium industrial park, complemented by commercial components and supporting infrastructure. SD Guthrie proposes to sell the land for RM933.57 million to Bukit Kerayong Industrial Developments Sdn Bhd. It will hold 30% of the development company through wholly owned SD Guthrie Land Ventures Sdn Bhd, while Bumi Assets Sdn Bhd will hold 35% and YTL Power International Bhd will hold the remaining 35% through wholly owned Bukit Kerayong Industrial Venture Sdn Bhd.

Separately, SD Guthrie and Sime Darby Property Bhd announced agreements on July 15 involving a proposed RM798.3 million land transaction covering approximately 1,021.93 acres within Bukit Kerayong Estate in Kapar. That parcel forms part of a larger development of approximately 3,000 acres under their 50:50 joint venture. Each partner has committed to invest up to RM100 million. The Sime Darby Property partnership envisages a heavy industrial park supported by logistics and renewable energy infrastructure.

In the plantation business, third-quarter fresh fruit bunch production increased 8% to 2.48 million tonnes, while the average realised crude palm oil price rose 3% to RM4,340 per tonne. Midstream and downstream operations nevertheless recorded lower quarterly operating margins. SD Guthrie said it remained on track for a strong full-year performance, although elevated palm oil stocks and softer export demand could temper near-term market sentiment.

Separately, The Edge Malaysia reported that the group had urged the government to temporarily waive crude palm oil export duty to help clear surplus stocks. Mohd Haris said the industry needed a few months to reduce inventories amid strong production and export logistics constraints. Despite the near-term glut, SD Guthrie expects palm oil prices to reach RM5,000 per tonne in 2027, The Edge Malaysia reported in a separate article.