KUALA LUMPUR (Feb 22): Hextar Industries Bhd posted a net profit of RM98.08 million on revenue of RM1.29 billion for the 16-month financial period ended Dec 31, 2022.

There are no year-on-year comparative figures as the group has changed its financial year end from Aug 31 to Dec 31.

Hextar Industries, which completed its acquisition of Hextar Fertilisers Ltd (HFL) last December, said the results reflect HFL's consolidation into the group.

“Hextar Industries has adopted the merger accounting method for the consolidation of the HFL Group which allows for the financial results of the HFL Group to be consolidated retrospectively,” it said in a statement on Wednesday (Feb 22).

The ACE Market-listed group declared an interim dividend of one sen per share, amounting to RM27.5 million, payable on March 15.

Hextar Industries managing director Benny Ang said the group will be able to elevate its earnings capability with the consolidation of HFL and resultant increase in the group’s annual capacity of compound fertilisers by eight times.

“We now have presence in several strategic locations namely Bintulu, Lahad Datu, Port Klang and Pasir Gudang. This provides us the leverage to tap into a bigger market and establish the Hextar Industries Group as a market leader in the fertiliser industry.

“The earnings uplift will also pave the way for our eventual transfer to the Main Board once we have met the necessary requirement,” he added.

Hextar Industries, which is currently trading at a price-to-earnings ratio of 85.2 times, closed at 80 sen on Wednesday. Its market capitalisation stood at RM2.2 billion.

Over the past year, the counter has risen 186%.