This was mainly due to higher sales volumes from the contributions of newly-acquired assets and existing operations, as well as an increase in rubber prices during 2Q compared to a year ago.
Gross profit for the quarter improved by 254.2% to US$32.2 million, from US$9.1 million a year ago.
This was mainly due to improved margins in the group’s processing segment, and contributions from operations acquired in 4Q16.
In a filing to SGX on Wednesday, the group says the gains achieved in its top and bottom line were driven by the integration of the natural rubber assets of Sinochem International Corporation Co. and GMG Global at the end of last year.
Cash and cash equivalents stood at US$231.4 million as at end June.
“We recognise that the full potential of our merger has not yet been realised, and we look forward to leveraging on further synergies created through acquired assets, as well as pipeline acquisitions,” says Robert Meyer, Halcyon Agri’s executive director and CEO.
Looking ahead, Meyer says the group is reviewing its global portfolio as part of its ongoing asset rationalisation strategy.
“We will continue to seek viable and environmentally-conscious methods to reinvent the rubber business, and align our business to a sustainable, customer-centric organisation that delivers consistent value to our stakeholders,” he says.
Shares of Halcyon Agri closed half a cent lower at 55 cents on Wednesday.
