KUALA LUMPUR (Nov 20): Hextar Industries Bhd (KL:HEXIND) posted a 12.59% drop in net profit for the third quarter on impairment loss and higher administrative expenses.

Net profit for the quarter ended Sept 30, 2024 (3QFY2024) fell to RM11.47 million from RM13.12 million in the same quarter a year earlier, according to the fertiliser maker and industrial equipment and office supplies trader’s bourse filing on Wednesday.

This was despite quarterly revenue rising 13.98% to RM285.71 million versus RM250.68 million previously, thanks to the consolidation of newly acquired subsidiaries Pacific Office (M) Sdn Bhd and Hextar Mitai Sdn Bhd.

Earnings, however, were impacted by a RM3.1 million impairment loss on other investments as well as higher administrative expenses of RM15.02 million compared to RM8.34 million in 3QFY2023.

No dividend was declared for the quarter.

For the nine months ended Sept 30 (9MFY2024), net profit was down 60.32% to RM21.73 million from RM54.76 million in the same period a year ago, while cumulative revenue was marginally flat with a 0.36% dip to RM768.76 million versus RM771.51 million.

Looking forward, Hextar Industries noted potential boons to fertiliser demand in the form of Budget 2025’s increased palm oil replanting efforts and raised windfall profit levy thresholds.  

“On the other hand, Indonesia, as the world’s largest palm oil producer, is increasing the biodiesel mandate from B35 to B40. This is likely to exert upward pressure on the crude palm oil (CPO) prices as well as domestic demand for fertilisers,” the company added.

Shares in Hextar Industries ended half a sen or 1.15% lower at 43 sen, valuing the company at RM1.17 billion.