Halcyon Agri Q3 earnings fall 38.2% to US$6.3 million
Tessa Oh
HALCYON Agri’s earnings before interest, taxes, depreciation and amortisation (Ebitda) fell 38.2 per cent to US$6.3 million in the third quarter ended Sep 30, 2023, from US$10.2 million in the corresponding period a year earlier.
Revenue climbed 6.8 per cent to US$757.9 million from US$709.8 million a year earlier, said the rubber supplier in a voluntary business update on Friday (Nov 24).
This was driven by a 36.2 per cent increase in sales volume in Q3 to 517,579 metric tonnes, from 380,092 metric tonnes previously.
Gross profit slipped 4.3 per cent to US$37.4 million, from US$39.1 million in the year-ago period.
The mainboard-listed company said it continues to “realise synergies” from its integration with Hainan Rubber. It noted that the integration has driven an increase in the company’s sales volume and revenue for a third consecutive quarter.
This has been further “buoyed by the gradually recovering downstream demand”, which came on the back of a surge in industrial and manufacturing activities, as well as a stabilisation of global interest rates, it added.
Commenting on the results, Halcyon Agri chief executive Li Xuetao said that while operating conditions will remain “challenging” in the fourth quarter, the company will continue to focus on enhancing its strength, and explore integration opportunities with its controlling shareholder to “unlock synergistic value”.
Halcyon Agri shares have been suspended from trading since Apr 25.
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