- Hextar Global register strong results in 1QFY2022 with a consolidated turnover of RM153.6 million with the Specialty Chemicals Segment being the key contributor to the increase in turnover, contributing approximately RM51.3 million.
- The strong performance was mainly attributed to revenue from the rubber industry which resulted in the group achieving strong revenue with quarterly earnings of RM16.5 million in the first quarter.
- On a quarter-to-quarter basis, revenue rose 11.3% from RM138.0 million to RM153.6 million leading to a 17.1% growth in net earnings from RM14.1 million to RM16.5 million, mainly due to the recognition of the full consolidation of the Specialty Chemicals Segment following the completion of the acquisitions of the specialty chemicals businesses towards the end of financial year 2021.
In comparison with the corresponding quarter of last year, revenue grew by 33.8% and net earnings improved by 54.6% from the turnover of RM114.8 million and net earnings of RM10.6 million achieved in the corresponding quarter of last year.
During the quarter under review, Hextar also completed the acquisition of PT Agro Sentosa Raya (“PTASR”), a chemical company based in Kabupaten Bogor, Jawa Barat, Indonesia, for RM 10.2 million.
PTASR’s principal activity is in formulation, mixing, and repacking of agrochemicals and specialty chemical applications as well as the provision of logistic services to assist customers to distribute their products. PTASR has been operating in Indonesia for over 15 years and will provide Hextar with an established business network. The acquisition is expected to contribute positively to the Group.
the group has entered into a Share Sale Agreement with its 49% owned subsidiary, Hextar Kimia Sdn Bhd, to acquire the entire share capital of Hextar Kimia’s two wholly owned overseas subsidiary companies namely, Hextar Kimia (Australia) Pty Ltd and International Chemicals Engineering Pty Ltd, in order to consolidate its foothold in the Australian and New Zealand oil and gas markets. It plans to leverage the 2 companies to promote its agrochemicals products to the respective markets. Hextar said it will be using internally generated funds to finance the acquisition.
Commenting on the Group’s financial performance for the quarter under review, Dato’ Eddie Ong Choo Meng said “despite the challenges we faced in our operating environment, from volatile raw material prices to supply chain disruptions, we have still been able to grow our revenue by 33.8% and net earnings by 54.6% in comparison to the corresponding quarter of the preceding year..”
The Board expects the Group to continue to maintain its growth trajectory driven mainly by the Specialty Chemical Segment.
