KUALA LUMPUR: Hextar Global Bhd reported a net profit of RM12.1 million for the first quarter ending March 31, 2024 (Q1FY24), marking a 40.8 per cent rise from RM8.6 million in the same period last year thanks to its specialty chemicals segment.
The company's revenue surged by 67.4 per cent to RM232.2 million, up from RM138.7 million, largely due to the newly diversified durian trading business in its fruits segment from November 2023 and its specialty chemical's segment performance.
"It was the major revenue contributor, with a contribution of RM48.8 million to the group's revenue."Additionally, revenue derived from the specialty chemicals segment also grew by RM45.8 million, mainly driven by contracts awarded from the oil & gas sector," it said in a filing with the bourse.
Hextar Global reported a profit before taxation (PBT) of RM19.7 million for the current quarter, up from RM15.2 million in the same quarter last year.
The company attributed the increase mainly to its specialty chemicals segment, which contributed RM8.6 million to the PBT.
On the prospects, Hextar Global also noted that the outlook for the pesticide industry in Malaysia appears to be positive.
"The population expansion and reduction in arable land available for cultivation pose a challenge to sustaining agricultural production."As such, pesticides play a crucial role in enhancing crop yields by aiding in pest management and weed control."The Malaysian government also introduced a range of incentives to ensure increased productivity within the palm oil and rubber industries as part of the recently announced Budget for 2024," it added.
The company anticipates a positive outlook for the durian industry within its fruits segment, expecting demand for durians to keep increasing.
"Growth within the durian industry is likely to come from factors such as the growing awareness and appreciation for durian from consumers domestically and around the world, particularly for "Musang King" variety."The development of the durian in Malaysia is expected to be supported by the increased durian cultivation in the country. "As we intensify our marketing efforts to create brand awareness among the locals and global market, we have been receiving positive responses from increased business dealings," it added.