Greetings, fellow investors! Hextar Global Berhad (Hextar), a prominent player in Malaysia’s diverse industrial landscape, has just released its interim report for the 3-month financial period ended 31 March 2025. This report offers a fresh look into the company’s operational strength and strategic direction as it navigates evolving market conditions.
Overall, Hextar has demonstrated a commendable performance, showcasing growth in both revenue and profit before taxation, primarily driven by its Specialty Chemicals and Agriculture segments. While challenges persist, particularly within its Fruits segment, the company’s strategic focus appears to be yielding positive results. Let’s dive deeper into the numbers and insights from this latest report.
Key Financial Highlights at a Glance:
- Revenue Growth: A solid increase of 2.7% compared to the same quarter last year.
- Profit Before Taxation (PBT) Surge: PBT jumped by 35.5% year-on-year, indicating improved profitability.
- Segmental Contributions: Specialty Chemicals and Agriculture segments were the primary growth engines.
Decoding Hextar’s Q1 2025 Performance
Overall Financial Performance
Hextar kicked off the 2025 financial year with a robust performance. The Group’s revenue for the current quarter stood at RM238.5 million, marking a 2.7% increase from RM232.3 million recorded in the corresponding quarter of the previous year. This growth highlights the company’s ability to expand its top line amidst a dynamic market.
Q1 2025 Revenue
RM238.5 million
Q1 2024 Revenue
RM232.3 million
More impressively, the Group’s profit before taxation (PBT) soared by 35.5% to RM26.7 million, up from RM19.7 million in the same quarter last year. This significant improvement in profitability was largely due to stronger profit margins across the Specialty Chemicals and Agriculture segments, supported by a more favorable sales mix.
Q1 2025 PBT
RM26.7 million
Q1 2024 PBT
RM19.7 million
On a quarter-on-quarter basis, comparing to the immediate preceding quarter (Q4 2024), Hextar’s performance was even more striking. Revenue increased by 8.4% from RM220.1 million to RM238.5 million. The PBT, in particular, witnessed a remarkable 150.2% surge, climbing from RM10.7 million in Q4 2024 to RM26.7 million in Q1 2025. This substantial jump was primarily attributed to the absence of impairment losses recognized in the previous quarter, coupled with stronger gross margins in both the Agriculture and Specialty Chemicals segments.
Q1 2025 PBT
RM26.7 million
Q4 2024 PBT
RM10.7 million
Profit after taxation (PAT) also saw a healthy increase of 16.1%, reaching RM18.7 million compared to RM16.1 million in the prior year’s corresponding quarter. Consequently, basic earnings per share (EPS) improved to 0.35 sen from 0.31 sen, reflecting enhanced shareholder value.
Segmental Performance Deep Dive
Understanding the contribution of each business unit is crucial for a holistic view of Hextar’s performance:
Specialty Chemicals: The Growth Catalyst
This segment emerged as a significant contributor to Hextar’s strong quarter. Its revenue surged by RM23.5 million to RM126.4 million from RM102.9 million in Q1 2024, and its PBT increased by RM4.2 million to RM24.3 million from RM20.0 million. This impressive growth was driven by a favorable sales mix and improved profit margins, showcasing the segment’s robust market position and operational efficiency.
