KUALA LUMPUR: Hextar Global Bhd posted a net profit of RM7.21mil in the third quarter ended Sept 30, 2021, a 42.22% decline from RM12.47mil in the previous corresponding quarter on the back of the global supply chain disruption resulting in raw material shortages and price escalations.
For the quarter, earnings per share came to 0.55 sen compared to 0.96 sen in the comparative quarter.
The group reported revenue of RM112.5mil, a marginal increase of RM1mil over the same quarter last year.
“Demand for agrochemical products has been increasing but delivery has been delayed due to bottlenecks in the supply chain.
“We believe that the situation should normalize soon but we will continue to monitor the current global supply chain issue closely as it remains an impediment to business operations globally,” said executive director Datuk Eddie Ong Choo Meng in a Monday statement.
He added that the group was aware that diversification was a key contributor to business sustainability.
“In this respect, we are pleased to highlight that the Group has completed the acquisition of Nobel Synthetic Polymer Sdn. Bhd. and Nobel Scientific Sdn. Bhd. on 18 November 2021.
“Together with Alpha Aim (M) Sdn. Bhd. and Chempro Technology (M) Sdn. Bhd., these companies are expected to contribute positively to the future earnings of the Group as we expand into the specialty chemical sector,” he said.
With signs of economic recovery in Malaysia and globally, he said Hextar is well-positioned to achieve improved business performance in future years.