RUBBER producer Halcyon Agri posted a loss of US$21.8 million for the six months ended June 2024. This was compared to a loss of US$62.1 million in the year-ago period.
Revenue increased 25.7 per cent to US$1.5 billion, from US$1.2 billion.
In a bourse filing on Tuesday (Aug 13), the group attributed this to expanded sales and better prices for its products. It noted that total sales volume increased 14.2 per cent to 901,780 metric tonnes.
Its gross profit improved 20.8 per cent to US$73.5 million on higher market prices as well as the group’s efforts to capitalise on its traceable rubber. Its revenue per tonne increased to US$1,691 from US$1,535.
But cost of sales increased 26 per cent to US$1.5 billion, with the group noting an increase in cost of sales per tonne by 10.4 per cent to US$1,609, which was “in line with rubber price trends”.
Improved sales volume was a benefit of integration with Hainan Rubber Group, specifically the expansion of sales in China, it said.
Looking ahead, Halcyon Agri noted rubber demand would be mainly affected by the interest rate environment, geopolitical tensions as well as the impact of China’s economic trends and policy stimulus on automotive manufacturers.
With the European Union Deforestation Regulation, market interest in traceable natural rubber products could increase and the company said it would actively capitalise on this market opportunity.
Hainan Rubber Group’s mandatory conditional cash offer of S$0.413 per share for Halcyon Agri closed on Apr 24, 2023, with the free float dropping to less than 10 per cent. Halcyon Agri shares have been suspended from trading since Apr 25, 2023.
