Halcyon Agri Reports H1 2024 Results

SINGAPORE, 14 August 2024 – Halcyon Agri Corporation Limited (“Halcyon Agri”, the “Company” and together with its subsidiaries, the “Group”) today announced its financial performance for the half year ended 30 June 2024 (“H1 2024”).

Amid a challenging global economic environment, the Group remained focused on its core operations, continued to enhance its market and cost competitiveness.

The Group’s total sales volume in H1 2024 has increased 14.2% from H1 2023, to achieve 901,780 metric tonnes. Revenue increased in tandem by 25.7% from US$1.2 billion in H1 2023 to US$1.5 billion in H1 2024, and gross profit improved from US$60.9 million in H1 2023 to US$73.5 million, driven by higher market prices as well as the Group’s conscious effort to capitalise the product differentiation opportunity in traceable rubber.

H1 2024 EBITDA for the Group increased to US$28.3 million, from US$3.4 million in H1 2023, due to margin expansion as aforementioned, as well as tighter cost control measures most notably in our plantation and processing platforms.

CEO’s Remarks

Commenting on the Group’s H1 2024 results, Mr Sun Weiliang (孙卫良), Chief Executive Officer said, “There are a lot of work to be done amidst the challenges market environment. We have started to see notable changes from the synergies of being part of the Hainan Rubber Group platform, and most importantly the collective effort of the teams within the Group.”

Mr Sun added, “While the macroeconomic outlook remains uncertain, the rubber prices have remained sturdy, which reflects the strong underlying demand support. We aim to continue expanding on our current initiatives in enhancing market and cost competitiveness, to maintain the momentum of improvement in results. We are intensifying our efforts to capitalise on the surging demand for traceable natural rubber which is mandated under EU Deforestation Regulation, and working closely with the major shareholders in bringing down the overall financing costs of the Group.”

Financial Performance Summary

H1 2024 sales volumes, while consistent with seasonal trends, improved over H1 2023, reflecting ongoing benefits from being part of the Hainan Rubber Group’s platform.

The increase in H1 2024 revenue compared to H1 2023 is a combined effect of price and volume improvement.

The Group’s gross profit improved in H1 2024 compared to H1 2023, driven by the Group’s margin expansion initiatives.

H1 2024 EBITDA showed gradual improvement over FY2023, driven by higher gross profit and effective cost-reduction initiatives in the plantation and processing platforms.