Hextar Global posts improved earnings in Q2, ventures into biogas business

PETALING JAYA: Hextar Global Bhd posted a net profit of RM11.11 million for the second quarter ended June 30, compared with a net loss of RM20.23 million a year ago, on a one-off goodwill impairment amounting to RM23.99 million.

Had the one-off goodwill impairment been excluded from last year’s results, the group would have achieved a 108.1% growth in net profit, Hextar said.

Its revenue increased 33.5% to RM100.72 million from RM75.44 million from the enlarged agriculture segment and the incorporation of revenue from the consumer products segment.

For the six month period, it posted a net profit of RM20.56 million from a net loss of RM14.09 million, while revenue improved by 30.5% to RM205.28 million compared with RM157.33 million in the same period last year.

In light of the improved performance, the board of directors approved a second interim dividend of 1.2 sen per share which amounted to RM9.8 million. To date the group has declared a total dividend of 2.2 sen per share, which represents a 87.1% payout ratio for the first half year of 2020.

Executive director Datuk Eddie Ong Choo Meng said despite the current challenges, the group has done well for first-half 2020 as it was considered an essential business during the movement control order period.

“The group will continue to intensify its sales and marketing efforts to secure more customers and to develop new products to further improve its competitive edge. The business growth momentum is expected to continue throughout the remaining period of the year,” he said.

In a separate Bursa Malaysia filing, the group said it will be venturing into the biogas industry via its investment in Biogas Engineering (BEE) Sdn Bhd and its subsidiary Biogas Environmental Engineering Sdn Bhd (BEE Group), in line with the its aspiration of further expansion in the agriculture sector.

BEE Group has over 20 years’ experience and specialised in technical research, engineering design, and construction of biogas processing system by utilising specialised technology to process industrial organic wastewater, especially from palm oil mill effluent (POME), to harvest energy while providing solution to environment concern.

“The acquisition of BEE would provide Hextar another new line of services to the palm oil industry. Our biogas system is effective and able to assist millers in generating green energy from the POME for a more sustainable palm oil industry,” Ong said.

source https://www.thesundaily.my/business/hextar-global-posts-improved-earnings-in-q2-ventures-into-biogas-business-JM3608496