Hextar Global 1H Revenue Grew 4 Percent But Lower Margin Effected Profits

Leading chemical manufacturer, Hextar Global recorded a 4% growth in revenue from the previous corresponding period, with revenue for 1HFY21 at RM213.5 million compared to RM205.3 million. The increase was mainly due to domestic sales registered in the agriculture segment.

However, net profit for decreased by 12.4% to RM18.0 million from RM20.6 million mainly attributable to the lower gross profit margin of 19.9% as compared to 22.4% achieved in the previous year from the increase in raw material prices and overhead costs.

For the quarter under review, revenue declined marginally by 2.0% to RM98.7 million compared to RM100.7 million achieved in the preceding corresponding quarter, while profit before tax stood at RM10.0 million compared to RM14.7million reported in the same period last year.

Despite the ongoing pandemic, the Group has stated that it remains resilient and is confident of being well prepared to face any future headwinds and challenges. The Board has therefore approved a first interim dividend of 1.0 sen per share which amounts to approximately RM13.13 million representing a payout ratio of 72.9% for the first half year of 2021.

Executive Director Dato’ Eddie Ong Choo Meng remains optimistic about the performance of the Group despite the current challenges. Expressing his views, he said “Over the last six months we have been very focused on expanding into the specialty chemicals sector which has cast a spotlight on our mergers and acquisitions prowess. Following the completion of the acquisition of Alpha Aim (M) Sdn. Bhd. and Chempro Technologies (M) Sdn. Bhd. on 23 July 2021, we are now working toward ensuring a smooth integration of the said businesses into the Group.

Together with the future income streams from the acquisitions of the Nobel Group as well as ENRA Kimia Sdn Bhd which are currently ongoing, Hextar has assured investor that it will emerge from the COVID-19 pandemic a much stronger and diversified chemical Group.

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