KUALA LUMPUR: Hextar Global Bhd recorded a net profit of RM15.65mil in the first quarter ended March 31, 2022, a 45.5% increase over RM10.75mil in the previous corresponding quarter on the back of higher turnover.
The group reported revenue of RM153.63mil in the quarter under review, which was 33.81% improved over the comparative quarter due to contribution from the newly acquired speciality chemicals segment.
The agrochemical group said margins improved to 10.7% from 9.3% in the year-ago quarter through higher margins from the speciality chemicals business.
Meanwhile Hextar also announced it had entered into a share sale agreement with 49%-owned subsidiary Hextar Kimia Sdn Bhd to acquire its two wholly-owned overseas units, Hextar Kimia (Australia) Pty Ltd and International Chemicals Engineering Pty Ltd, to consolidate its foothold in the Australian and New Zealand oil and gas markets.
Together with its acquisition of PT Agro Sentosa Raya in Indonesia in 1Q22, the group will have immediate access to the Indonesia, Australian and New Zealand markets while allowing it to add to its capacity and geographic presence in respect of its core businesses, said executive director Datuk Eddie Ong Choo Meng in a statement.
“As we move into 2022 and while challenging market conditions continue to persist, barring any unforeseen circumstances, the Board expects the Group to continue to maintain its growth trajectory driven mainly by the Specialty Chemical Segment.
"The strong start to the year gives us confidence that we are on track to deliver strong results for the financial year ending 31 December
2022” he added.