KUALA LUMPUR: Hextar Industries Berhad (HIB) registered a
cumulative consolidated revenue of RM769 million and net profit of RM22 million for the 9-months financial period ended Sept 30, 2024.
As compared to preceding quarter, HIB’s consolidated revenue for the third quarter ended Sept 30, 2024 (3Q2024) improved from RM245 million to RM286 million with the higher delivery of fertilisers.
On the back of the said revenue and higher profit margin attained, the Group recorded a net profit of RM11.5 million as compared to preceding quarter’s net profit of RM5.7 million, an increase of 101%.
Commenting on the 3Q2024 results, Group managing director Benny Ang said: “The net profit of fertilisers have improved by 113%, from RM5.3 million to RM11.3 million, with higher sales from the fertiliser deliveries by 20% compared to the preceding quarter. The domestic demand for fertilisers remains strong with the recent surge in CPO prices to above RM5000 per tonne. At this moment, the planters are keen to invest more (on the fertilisers) for higher yields and return.”
In 2024, he added financial results of other divisions (Industrial and Consumer) also improved significantly, contributing a consolidated net profit of RM5.2 million (9-months), an increase of 114% as compared to the net profit of RM2.4 million achieved in the corresponding period of 2023.
“This follows the consolidation of new subsidiaries acquired at the end of last year which are in the business of office supplies and engineering solutions respectively,” he said.
The Fertiliser Division contributed 85% of the Group’s total revenue in 2024.
HIB executive director, Alex Sham said that in Budget 2025, the Government increased replanting support and raised windfall profit levy thresholds.
“This provides cost relief to the planters and encourages sector
expansion next year. On the other hand, Indonesia, as the world largest palm oil producer, is increasing the biodiesel mandate from B35 to B40. This is likely to exert upward pressure on CPO prices as well as domestic demand for fertilisers. On the back of these favourable factors, the coming year’s prospect appears to be very positive,” he added.
