KUALA LUMPUR (Nov 20): Hextar Global Bhd’s net profit grew 10.3% year-on-year for the third quarter ended Sept 30, 2023 (3QFY2023), thanks to the improved gross margin on its agrochemical products arising from efficient raw material stock management.

The net profit increased to RM15.39 million from RM13.96 million in 3QFY2022. Earnings per share rose to 0.40 sen from 0.36 sen, according to the agrochemical group's bourse filing.

Quarterly revenue grew 17.3% to RM182.94 million from RM155.96 million previously, primarily driven by higher contributions from the agriculture and specialty chemicals segments.

On a quarter-on-quarter basis, Hextar Global’s net profit climbed 77.54% from RM8.67 million in 2QFY2023, as revenue expanded 37.05% from RM133.48 million.

For the nine-month period ended Sept 30, 2023, net profit declined 27.19% to RM32.69 million from RM44.9 million in the same period of 2022, dragged by a margin compression for agrochemical products, higher operating expenses and finance costs. Nine-month revenue fell 1.24% to RM455.16 million from RM460.85 million.

On its prospects, Hextar Global group managing director Lee Chooi Keng said the group has further diversified its earnings base following the recent acquisition of PHG Ever Fresh Group.

“We believe that this new durian business has the potential to provide the group a further uplift in earnings in view of the favourable outlook and prospects of the durian industry underpinned by the potential growth in demand from the Asia region, particularly from China,” said Lee.

She said the group is actively developing more durian-related products to create an ecosystem to establish a higher-value product positioning.

"In addition to our existing sales model, we are introducing e-commerce operations. Our management is working closely with the durian farmers to explore international markets with the aim of introducing Malaysian durians globally," she added.

Hextar Global shares settled down one sen or 1.33% at 74 sen on Monday, giving the group a market capitalisation of RM2.92 billion.