Halcyon Agri has reported earnings of US$10.8 million ($14.6 million) for the 2HFY2021, reversing from the loss of US$13.4 million reported in the 2HFY2020.

During the FY2021, the group saw earnings of US$11.5 million, from its loss of US$53.8 million in the FY2020.

The reversal into the black was due to higher performance recorded across all business segments of the group.

“FY2021 is the year where the world is recovering from a disastrous FY2020, where industrial activities in the automotive sector and natural rubber industry were affected by the Covid-19 pandemic,” says the group in a statement on Feb 28.

“Halcyon Agri, being a world-leading natural rubber producer, with a unique vantage point to the global supply and demand dynamics, has effectively executed its business strategy in accordance with its Pillar of 360° Excellence, to seize market opportunities amid the surge in demand,” it adds.

See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/capital/results/ntuc-income-reports-premium-growth-fy2021-lower-net-operating-surplus-fair-value?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>NTUC Income reports premium growth for FY2021 but lower net operating surplus on fair value loss</a>

During the FY2021, Halcyon Agri saw sales volume returning to its pre-pandemic levels at 1.37 million metric tonnes (MT), up 15.7% y-o-y.

Revenue for the FY2021 surged 44% y-o-y to US$2.45 billion on the back of higher volume and higher natural rubber prices.

FY2021 gross profit rose 60.4% y-o-y to US$162.9 million due to higher volumes and better unit margins.

EBITDA for the FY2021 surged some 39.3 times to US$61.1 million, from the EBITDA of US$1.6 million in the FY2020.

See also: <a class='gtm_see_also_2_inread' style='text-decoration: underline;' href='/capital/results/serial-system-reports-lower-1qfy2022-earnings-allowance-obsolete-stocks?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Serial System reports lower 1QFY2022 earnings on allowance for obsolete stocks</a>

The increase is attributable to better margins and the realisation of benefits from cost saving initiatives executed over the past two years, says the group.

In FY2021, Halcyon Agri reported a 10% y-o-y increase in production volume to 869,699 MT.

“Ramping up its production volumes has allowed the group to enjoy lower unit costs and achieved economies of scale, which has contributed to the better results in FY2021,” it says.

As at end-December, cash and cash equivalents stood at US$33.4 million.

Looking ahead, Li Xuetao, CEO of the group says Halcyon Agri remains “cautiously optimistic that the operating conditions in FY2022 will remain robust, and bodes well with Halcyon Agri’s natural rubber business, which thrives on global mobility and transportation.”

“We spare no effort to continue our positive momentum and will continue to capitalise on market opportunities to further augment our business, and generate sustainable profits. We also aim to speed up our deleveraging plan, to improve the group’s liquidity and capital structure,” he adds.

On FY2021’s performance, Li continues, “We have made great progress on all fronts in 2021. Our result is attributed to effective execution of business strategy, based on our Pillar of 360° Excellence, which enabled us to mitigate the effects of Covid-19 pandemic, in achieving our business objectives. All due credits must go to my team. Certainly, we recognise and want to thank all our stakeholders and business partners for their steadfast support during this tumultuous period.”

As at 9.22am, shares in Halcyon Agri are trading 1 cent lower or 3.64% down at 26.5 cents.

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