KUALA LUMPUR: Hextar Global Bhd's operations avoided disruption from Covid-19 and recorded a 53.84% year-on-year jump in net earnings to RM9.45mil in the financial quarter ended March 31, 2020.

In a filing with Bursa Malaysia, the agrochemicals producer said the improved performance came on the back of improved revenue from both the agriculture and consumer products segments. The group declared a first interim dividend of one sen per share.

"Being one of the biggest producers of agrochemical in Malaysia, the Group was able to secure sufficient inventories to operate without disruption from the COVID-19 impact," it said.

"As a leading crop management solutions provider in Malaysia, the Board is confident that the Agriculture segment will continue to contribute a sustainable income to the Group in year 2020," it added.

.Revenue for the quarter was RM104.57mil, a 27.7% jump from the previous corresponding quarter due to the enlarged agriculture segment and the incorporation of revenue from the consumer products segment following the merger with Hextar Chemicals Ltd.

Despite the coronavirus pandemic, there were higher sales to both local and overseas markets, which yielded an improved gross profit margin of 21.9%, an increase of 6.6% over the comparative quarter.

The group incurred a net foreign exchange loss of RM1.56mil as compared to a net gain of RM620,000 in the previous corresponding quarter.

Excluding the foreign exchange, the group's operating pre-tax profit grew 93.4% to RM14.12mil from the previous corresponding quarter.

Meanwhile, the consumer segment contributed a pre-tax profit of RM410,000 as compared to a loss in the comparative quarter.

"This result was driven by strong revenue growth, partly boosted by the increased demand due to Covid-19.

"Furthermore, the positive result was underpinned by increased capacity and higher output rates from new equipment invested in addition to the effort by the Group in cost efficiency.

"The growth momentum is expected to continue through the rest of the year," it said.