KUALA LUMPUR: Hextar Industries Bhd (HIB) anticipates demand for fertilisers to remain healthy in 2023, according to executive director Alex Sham Weng Kong.
“With the recent recovery of crude palm oil (CPO) prices back to circa RM4,000 per metric tonne and with the easing of foreign labour issues, we are anticipating that demand for fertilisers will remain healthy in 2023 and we look forward to capitalising on our enlarged operations, network and capacity to meet this demand,” he said in a statement.
HIB posted a net profit of RM98.1mil on revenue of RM1.29bil for the 16-month financial period ended Dec 31, 2022.
There is no comparative figures as the company changed its financial year ending from August 31 to December 31.
The company has proposed an interim single-tier dividend of 1 sen per ordinary share for the period ended Dec 31 amounting to approximately RM27.5mil which will be payable on March 15. The proposed dividend entitlement date is fixed on March 8.
“With the consolidation of Hextar Fertilizers Limited and the resultant increase in our annual capacity of compound fertilisers by eight times, we will be able to elevate our earnings capability through economies of scale,” group managing director Benng Ang said.
“We now have presence in several strategic locations namely Bintulu, Lahad Datu, Port Klang and Pasir Gudang. This provides us the leverage to tap into a bigger market and establish the HIB Group as a market leader in the fertiliser industry. The earnings uplift will also pave the way for our eventual transfer to the Main Board once we have met the necessary requirements.”