Hextar Global optimistic over 2023 prospects

KUALA LUMPUR: Hextar Global Bhd is positive over its outlook for the remainder of the financial year amid growing prospects for its business segments.

"Despite a challenging market environment, Hextar is still able to achieve a commendable financial performance as we continue to deliver growth and improve this third quarterly results, putting us in a great position to close off the financial year on a high note.

"Our results further solidify our position in the market whilst we continuously strive to improve our profitability from the synergies gained from our strategic business diversification," said group managing director Lee Chooi Keng in a statement.

She added that the group's acquisition of PHG Ever Fresh Group has diversified its earnings base, with the new venture having the potential to further lift earnings in view of the favourable outlook of the durian industry.

"Our management is working closely with the durian farmers to explore international markets with the aim of introducing Malaysian durians globally," she said.

In the third quarter of 2023, the group posted a net profit of RM15.39mil, up from RM13.96mil in the same quarter in 2022.

Earnings per share rose to 0.4 sen from 0.36 sen in the comparative quarter.

The group reported revenue of RM182.94mil from RM155.96mil in the same 2022 quarter on higher revenue from both the agriculture and speciality chemicals segments.

"The agriculture segment's improvement in revenue was mainly driven by the higher market demand amid favourable selling prices for glyphosate-related products.

"Meanwhile, the speciality chemicals segment's revenue rose mainly due to the consolidation of revenue from the newly acquired wholly-owned subsidiary, Hextar Industrial Chemicals Sdn Bhd, coupled with higher export of speciality Chemicals for the rubber glove industries," it said in a stock exchange filing.

For the nine months period, the group said net profit was RM32.69mil, down from RM44.9mil while revenue was RM455.16mil from RM460.85mil in the same period in 2022.