KUALA LUMPUR (Feb 26): Hextar Healthcare posted a smaller net loss in the fourth quarter but closed 2023 with the worst earnings on record amid persistent soft demand, lower average prices and intense competition.

Net loss for the three months ended Dec 31, 2023 was RM47.75 million compared with RM56.38 million over the same period last year on lower operating expenses, Hextar Healthcare said in an exchange filing. Revenue for the quarter slipped 8.6% year-on-year to RM36.64 million from RM40.07 million. 

The company has taken “active necessary steps to address the current soft demand, including making adequate provisions for impairment”, said Hextar Healthcare managing director Khoo Chin Leng in a statement. “We are confident that such strategic measures will pave the way for improved performance over the long term.”

Hextar Healthcare’s latest results dovetail with weak performance in the sector as glovemakers continued to grapple with supply glut and lacklustre demand. Shares of Hextar Healthcare have fallen over 20% since the start of the year, tracking decline of larger rivals in the sector.

For the full year of 2023, net loss widened to RM66.12 million from RM55.69 million a year earlier. The company wrote down its inventories totalling RM29.6 million and RM8.8 million for assets while booking provision for loss allowance on other receivables of RM5 million. 

Revenue for FY2023 fell 11.36% to RM155.09 million from RM174.97 million a year ago.

Hextar Healthcare has been expanding into property investments two years ago, which “appears on course towards yielding results,” the company noted. The company’s 20%-owned Empire City Mall currently under construction in Petaling Jaya, Selangor, is nearing completion. 

"Taking advantage of the nation's robust growth in commercial and retail sectors, our venture into property investments is poised to secure a consistent alternative income stream for the group,” said its largest shareholder Datuk Eddie Ong.

Ong holds 35.067% stake in the group held through Hextar Rubber Sdn Bhd. Hextar Healthcare was previously known as Rubberex Corp (M) Bhd before its name change in 2022. 

Shares of Hextar Healthcare closed at 23 sen, valuing the company at RM251.43 million on Bursa Malaysia ahead of the results announcement.