Halcyon Agri sees 22 % fall in Q3 Ebitda despite surge in revenue

MAINBOARD-LISTED Halcyon Agri Corporation saw earnings before interest, tax, depreciation and amortisation (Ebitda) fall 21.8 per cent to US$9.7 million for the third quarter ended Sep 30, 2021, from US$12.4 million a year ago.

However, revenue in the same period rose 51.9 per cent to US$602.1 million from S$396.4 million a year ago.

The natural rubber supplier attributed this to robust downstream demand, with sales volume in Q3 FY2021 growing by 11.6 per cent. Higher average selling prices also buoyed revenue for the quarter.

The company noted that its industrial and non-tyre rubber distribution platform Corrie MacColl International was the main contributor to the company's third quarter Ebitda.

Operations at the group's tyre grade rubber division, Halcyon Rubber Company, also improved, although the margins of its processing business were affected by new waves of Covid-19 cases in key operating regions. Extreme weather patterns also caused supply to tighten, resulting in higher raw materials prices.

Furthermore, the group's plantation assets under CMC plantations narrowed its operating losses due to improvements in margins from higher selling prices and better plantation yield as its plantations were more operationally efficient and mature.

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Shares of Halcyon Agri fell 2 per cent or S$0.005 to close at S$0.245 on Thursday (Nov 11) before the business update was released.