KUALA LUMPUR: Hartalega Holdings Bhd has returned to profitability with a net profit of RM22.38 million in the third quarter ended Dec 31, 2023 thanks to lower raw material costs and reduced utilities expenses.
It also saw enhanced production efficiency from higher capacity utilisation, and cost savings from the decommissioning of the Bestari Jaya facility.
It made a net loss of RM31.91 million for the third quarter ended Dec 31, 2022.
Group revenue stood at RM415.64 million, down from RM461.84 million in the same quarter last year due to lower sales volume and average selling price (ASP).
For the six months period, Hartalega recorded a net loss of RM2.39 million compared to a net profit of RM84.71 million in the previous comparative period.
Its revenue shrank to RM1.31 billion from RM1.89 billion as sales volumes and ASP narrowed.
Hartalega chief executive officer Kuan Mun Leong said the company sees positive indicators that the ongoing global oversupply is gradually being addressed through key capacity rationalisation efforts, thus easing some pressure on the excess supplies in the market.
On the demand front, Kuan said the recent demand stabilisation after the notable decline in 2023 and the expected gradual return to pre-pandemic levels in the later part of 2024 or early 2025 also bodes well for prospects in the industry over the long term.
"The company will weather the tough conditions in the sector and take this opportunity to improve operational efficiency and heighten best practices in terms of fiscalmanagement.
"Our 5-year strategic plan will be our blueprint during this challenging period and we are confident that this will enable the company to emerge as a stronger and more resilient company, with an innovative and agile approach to drive us forward," he added.