Hextar Global Berhad has announced its financial results for the fourth quarter (“4QFY21”) and the twelve-month periods ended 31 December 2021 today.
The agrochemical company’s revenue increased by 35.6% to RM138.0 million in 4QFY21, marking it as the highest quarterly revenue on record. This was mainly attributed to revenue contributions from the newly acquired Specialty Chemicals Segment amounting to RM30.6 million. Improved contributions from the Agriculture Segment which increased by RM6.5 million due to delivery of partial backlog orders caused by supply chain disruption further contributed to the improved revenue recorded for the quarter.
While the Group’s net profit increased by 22.7% to RM14.1 million as compared to the corresponding period in 2020. The improvement in profit was mainly due to sound inventory management and the new source of earnings from the Specialty Chemicals Segment.
Hextar registered a historical high revenue of RM464.1 million on YoY basis and net profit of RM39.2 million.
However, the net profit of RM39.2 million was slightly lower as compared to last year of RM44.5 million due mainly to expenses incurred by the Group for various corporate exercises undertaken during the current financial year as well as the slower performance of the Consumer Products Segment.
For 4QFY21 ended 31 December 2021, the Group registered a revenue of RM138.0 million as compared to the immediate preceding quarter of RM112.6 million, representing an increase of RM25.5 million or 22.7%. Profit after taxation in turn increased by RM6.9 million or 96.9% from RM7.1 million in the immediate preceding quarter to RM14.1 million in the current quarter. The increase was mainly driven by the consolidation of the financial results of newly acquired Specialty Chemicals Segment as well as higher contribution from the Agriculture Segment.
A second interim dividend of 1.2 cent per share is declared by the Board, which is payable on 25 March 2022 to shareholders appearing in the record of depositors on 9 March 2022. Its prior quarterly dividend was 1 cent per share announced in August 2021.
“We ended 2021 with a strong fourth quarter and closed 2021 in a positive way. Market activities picked up gradually during the year and order bookings started to increase. Hextar has achieved good revenue growth against the prior two comparative quarters reflecting the strength of the Group’s flexible model and despite a challenging external trading environment,” Dato Eddie Ong, the Executive Director of Hextar said.
“Solid earnings contribution from the Specialty Chemicals Segment has only just begun as a majority of the acquisitions were completed towards the last quarter of 2021. However, we now have a very strong platform providing us with consistent growth which in turn will enable us to continue to provide our stakeholders with growing returns. We will also continue to be attentive to the welfare of our clients, employees and our business partners, and to support the underprivileged communities as we’ve always done,” Dato’ Eddie Ong commented on the outlook for 2022.
