Halcyon Agri's FY13 net profit down 9.3% to $9.1m

Even as sales volume ballooned.

Natural rubber producer Halcyon Agri Corporation Limited announced a net profit of US$1.4 million for Q4 2013 and US$9.1 million for the full year ended 31 December 2013 (FY13), on revenues of US$53.5m and US$205.0m respectively.

The FY13 net profit is 9.3% lower that it was from the previous year.

The Group’s sales volume for Q4 2013 increased 52% over Q4 2012 to 23,286 tonnes, bringing the total sales volume for FY2013 to 79,108 tonnes, an increase of 18% over FY2012. Revenues were 8% lower in FY2013 due to the lower market price for natural rubber.

Despite the 26% decline in the SGX-ST TSR20 futures contract price in 2013, average revenue per tonne was only 21% lower and gross material profit per tonne was just 8% lower than 2012 at US$379 per tonne.

Halcyon Agri’s Executive Chairman and CEO Robert Meyer commented: “we are pleased to have delivered a solid operating performance in spite of declining prices, again outperforming the broader market and demonstrating the resilience of our business model.”

The Board of Directors has proposed a first and final dividend of S$0.01 a share, representing a payout of approximately 35% of Group’s profit after tax attributable to owners of the Company.

Halcyon Agri made significant investments in the future growth of the Group in 2013, with in excess of US$75 million committed to acquiring natural rubber processing facilities in Indonesia and Malaysia, plantation land in Malaysia, and expanding and enhancing the Group’s existing facilities in Indonesia. The Group’s total potential processing capacity now stands at approximately 360,000 tonnes, more than double from 2012.

Mr Robert Meyer noted “We are very proud of what we have achieved in the last 12 months. We’ve established a strong platform for the future growth of the Group and have delivered good results in challenging markets. With our three acquisitions all completed in the last two months, we are excited about 2014 and look forward to cementing our place amongst the top 10 natural rubber producers globally”