Halcyon Agri Corp. reported Friday its first quarter revenue increased 18.9 percent on-year to US$617.3 million on higher sales volume and higher average selling prices.
Core earnings before interest, taxes, depreciation and amortization (ebitda), which excludes non-operational items, increased to US$15.1 million in the quarter, up from US$14.3 million in the year-ago quarter, but down from US$24.6 million in the fourth quarter, Halcyon Agri said in a filing to SGX.
Halcyon Agri owns and operates assets in the natural rubber value chain, and distributes a range of natural rubber grades, latex and specialized rubber for the tyre and non-tyre industries, the filing said.
“Rubber prices were on the uptrend in the beginning of the year. However, against the backdrop of Russia-Ukraine conflict and lockdowns in certain regions in China, downward pressure has been observed since February 2022,” the company said. “Near-term concerns about the Fed’s interest rate hike and inflationary risk have also further mounted pressure on the rubber market.”
Li Xuetao, CEO of Halcyon Agri, said demand for natural remained “sturdy” despite macro headwinds from geopolitics and inflation as it is a daily necessity.
“The expected ramping up of global mobility will also boost the usage of tyres and natural rubber,” Li said. “The group maintains its view that the mid to long-term supply and demand dynamics of natural rubber remain favourable, and will support its prices.”