KUALA LUMPUR: Hextar Global Bhd
wrapped the second quarter ended June 30, 2020, with a net profit of RM11.11mil, which compared to a net loss of RM20.23mil in the previous corresponding quarter as revenue grew amid rising contributions from its business segments.
The agrochemicals manufacturer added that it was able to avoid disruption from the movement control order as its business was categorised as an essential service.
"Being one of the biggest producers of agrochemical in Malaysia, the group was able to secure sufficient inventories to operate without the disruption from the Coronavirus Disease impact," it said.
In the quarter under review, Hextar recorded revenue of RM100.72mil, which was a 33.51% year-on-year (y-o-y) increase from RM75.44mil.
The group has proposed a second interim single-tier dividend of 1.2 sen per share with entitlement and payment dates on Sept 9 and 28 respectively.
Elaborating further on the jump in earnings, Hextar noted that it had incurred a one-off impairment of goodwill on business combination amounting to RM23.99mil in 2QFY19, which resulted in the loss-making quarter.
Excluding the one-off impairment, the group would have recorded a pre-tax profit of RM5.28mil.
Year to date, the group recorded a cumulative net profit of RM22.56mil as compared to a net loss of RM14.08mil in the same period last year. Revenue was also higher at RM205.28mil versus RM157.33mil previously.
The group said it achieved higher-than-market results in its agriculture business in the first half of the year and is positive over the segment's contributions moving forward.
"With the rebound of crude palm oil price, barring any unforeseen resurgence of COVID-19, the board is confident that the segment will continue to contribute a sustainable income to the Group in year 2020," it said.
Meanwhile, Hextar expects the growth momentum in the consumer products segments to continue after it ended a second quarter in the black with strong revenue growth as demand increased due to the pandemic, and cost rationalisation.
On expansion plans, a new subsidiary, Hextar IOT Sdn Bhd, has been set up to embark on 5G technology in the plantation industry.
"With the ongoing initiatives, the board remains fully confident in financial performance for the financial year ending Dec 31, 2020," it said.
wrapped the second quarter ended June 30, 2020, with a net profit of RM11.11mil, which compared to a net loss of RM20.23mil in the previous corresponding quarter as revenue grew amid rising contributions from its business segments.The agrochemicals manufacturer added that it was able to avoid disruption from the movement control order as its business was categorised as an essential service.
"Being one of the biggest producers of agrochemical in Malaysia, the group was able to secure sufficient inventories to operate without the disruption from the Coronavirus Disease impact," it said.
In the quarter under review, Hextar recorded revenue of RM100.72mil, which was a 33.51% year-on-year (y-o-y) increase from RM75.44mil.
The group has proposed a second interim single-tier dividend of 1.2 sen per share with entitlement and payment dates on Sept 9 and 28 respectively.
Elaborating further on the jump in earnings, Hextar noted that it had incurred a one-off impairment of goodwill on business combination amounting to RM23.99mil in 2QFY19, which resulted in the loss-making quarter.
Excluding the one-off impairment, the group would have recorded a pre-tax profit of RM5.28mil.
Year to date, the group recorded a cumulative net profit of RM22.56mil as compared to a net loss of RM14.08mil in the same period last year. Revenue was also higher at RM205.28mil versus RM157.33mil previously.
The group said it achieved higher-than-market results in its agriculture business in the first half of the year and is positive over the segment's contributions moving forward.
"With the rebound of crude palm oil price, barring any unforeseen resurgence of COVID-19, the board is confident that the segment will continue to contribute a sustainable income to the Group in year 2020," it said.
Meanwhile, Hextar expects the growth momentum in the consumer products segments to continue after it ended a second quarter in the black with strong revenue growth as demand increased due to the pandemic, and cost rationalisation.
On expansion plans, a new subsidiary, Hextar IOT Sdn Bhd, has been set up to embark on 5G technology in the plantation industry.
"With the ongoing initiatives, the board remains fully confident in financial performance for the financial year ending Dec 31, 2020," it said.
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