Halcyon Agri posts Q1 loss of US$5.7m on higher financing cost, lower sales volumes

Singapore

A DELIBERATE switch in strategy that hurt sales volumes and higher financing cost drove rubber supplier Halcyon Agri Corp into the red to the tune of US$5.7 million in the first quarter compared with a restated profit of US$1.3 million in the same period a year ago.

Revenue slid 16 per cent to US$399.7 million over the three months to March 31, as sales volume dropped 9 per cent, due mainly to the change in sales strategy aimed at capturing better margins versus higher volume in view of raw material tightness in Indonesia and Thailand.