KUALA LUMPUR (Aug 19): Agrochemical and fertiliser trading company Hextar Global Bhd (KL: HEXTAR) saw its net profit rise more than twofold to RM19.16 million for the second quarter ended June 30, 2024, from RM8.67 million in the same period last year, on the back of higher revenue.

Earnings per share (EPS) rose to 0.49 sen from 0.23 sen previously, the company's bourse filing showed.

Quarterly revenue surged 59.5% to nearly RM213 million, up from RM133.5 million, mainly due to a RM58.5 million boost in the specialty chemicals segment from new oil and gas contracts and growth in its newly diversified durian trading business within the fruits segment.

Hextar proposed an interim single-tier dividend of 0.5 sen, payable on Oct 4.

Meanwhile, the group’s six-month earnings rose 81% to RM31.3 million from RM17.3 million, while revenue jumped over 63% to RM445.2 million from RM272.2 million, boosted by a contribution of RM104.4 million from the specialty chemicals segment and RM68.8 million from the newly acquired fruits segment.

Looking ahead, Hextar noted that the outlook for Malaysia's pesticide industry remains positive, as population growth and shrinking arable land create challenges for sustaining agricultural productivity.

“Our ongoing strategy involves concentrating on sales and marketing efforts to expand our markets, explore new opportunities, increase revenue and uphold our position as a leader in the local market,” it said.

Touching on the specialty chemicals sector, the group has set up a plan to strengthen its marketing force with the new intake of experienced and competent sales and technical team.

Besides, the group sees strong government support in promoting durian internationally as a positive for the industry, while leveraging technology and supply chain integration to deliver high-quality durians globally.

“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.

At time of writing, Hextar Global’s share price was down 0.5 sen or 0.57% at 86.5 sen, giving it a market capitalisation of RM3.41 billion.