Its revenue for the quarter jumped 42.5% to RM16.5 million from RM11.58 million a year earlier.
KUALA LUMPUR (Nov 29): Nextgreen Global Bhd (KL:NGGB) saw a more than fourfold increase in its net profit for the third quarter ended Sept 30, 2024 (3QFY2024), driven by strong performance in its manufacturing segment.
The group’s net profit surged to RM9.06 million from RM2.22 million in the corresponding quarter last year, as the net profit of its manufacturing segment surged 439.54% year-on-year (y-o-y) to RM12.87 million.
As a result, earnings per share rose to 0.90 sen for 3QFY2024, compared with 0.27 sen for 3QFY2023.
The group did not declare a dividend for the quarter under review.
Its revenue for the quarter jumped 42.5% to RM16.5 million from RM11.58 million a year earlier. The manufacturing segment contributed 93% of Nextgreen’s revenue during the quarter, followed by its printing and publishing segment.
Meanwhile, its property and construction division, as well as utility and renewable energy segment, did not generate any revenue during the quarter.
The group’s results were also bolstered by higher other income, largely by the sale of manufacturing by-products, even though its printing and publishing division did not contribute any lease income.
For the cumulative nine months ended Sept 30, 2024 (9MFY2024), Nextgreen posted a net profit of RM22.43 million, up from RM4.70 million in the same period a year ago, while revenue climbed to RM51.23 million from RM33.30 million for 9MFY2023.
Despite solid revenue and income contribution, the group said its operating expenses climbed 80% y-o-y due to RM2.23 million in costs linked to the sale of manufacturing by-products.
The increase was further compounded by higher manpower costs, driven by workforce expansion and greater depreciation expenses from newly acquired assets.
Meanwhile, net finance costs for the group saw a 24% increase, in line with additional term loans, trade financing, bank facilities, hire purchases and leasing.
Nextgreen is developing the Green Technology Park (GTP) in Pekan, Pahang, which is envisioned as a zero-waste pulp-and-paper production site.
Through Nextgreen IOI Pulp Sdn Bhd, the group is in the final stages of completing a feasibility study and negotiating a shareholder agreement with a China-based pulp producer. The agreement is anticipated to be finalised and signed by the end of this year.
Meanwhile, Nextgreen has identified a potential site within GTP for the development of two pulp mills with an annual production capacity of 150,000 metric tonnes (MT) of bleached chemical empty fruit bunch (EFB) pulp under Phase 2A.
It is also looking to develop a pulp mill with an annual production capacity of 300,000 MT of bleached chemical EFB pulp under Phase 2B of the GTP.
Nextgreen is currently constructing a solid fertiliser manufacturing plant with an annual capacity of 30,000 MT, which is slated to be completed by the end of this year.
“Simultaneously, we are conducting a detailed evaluation of GTP’s land to identify subdivided plots for third-party development, ensuring optimal utilisation of the park’s resources,” the group said.
Nextgreen is in the business of turning EFB, a byproduct of palm oil mills, into green and sustainable products such as pulp and paper, pulp moulding, fertiliser and animal feed.
At Friday’s close, Nextgreen’s share price was unchanged at 90 sen, valuing the company at RM961.98 million.
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Source: EdgeProp.my
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