Hartalega Berhad : 1QFY23 Results Release

1st Quarter FY2023 Financial Results

Hartalega Holdings Berhad

Analyst Briefing

9 August 2022

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Q1 FY2023 Financial Results Overview

			Q1 FY23	Q4 FY22	QoQ	Q1 FY22		YoY
			Change		Change
		Sales Volume	7.3	7.3	-	10		(27%)
		('bil pieces)
		Utilisation Rate	69%	69%		88%*
		Revenue	846	969	(13%)	3,902		(78%)
		(RM'mil)
		Operating	153	207	(26%)	2,851		(95%)
		Profit (RM'mil)
		OP Margin	18.1%	21.4%		73.1%
		PBT (RM'mil)	134	218	(39%)	2,879		(95%)
		PBT Margin	15.8%	22.5%		73.8%
		PAT (RM'mil)	91	(190)	148%	2,262		(96%)
		PAT Margin	10.8%	(19.6%)		58.0%
		* discounting volume from shipment delay in previous quarter
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Q1 FY2023 Financial Results Overview

Revenue (RM'mil)

PBT (RM'mil)

PAT (RM'mil)

969	846
4Q'22	1Q'23

218		91
	134
	4Q'22	1Q'23
4Q'22	1Q'23

Factors affecting the quarter:

(190)

Continued ASP moderation in the quarter due to global market oversupply situation

Margin compression resulting from higher overall operating costs amid declining ASP

PAT was higher following absence of the one-off tax expense provision for Prosperity Tax (Cukai Makmur) recorded in preceding Q4'22

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Strong headwinds for the sector

Market competition continues amid rising costs

Billion pieces

Estimated Industry Supply - Key Players

400
350
	40	42
300
250
33	83	83

20024

150

100	182	198	198
50
-
2020	2021	2022
			Malaysia		China		Thailand

Continued strong market competition and excess capacities from major players capped

upward trajectory for ASP

Global inflationary pressure resulted in higher

operating costs environment

• Higher energy costs

(increase in electricity & natural gas tariffs in 2022)

• Increased labour cost with new minimum wage

standard in Malaysia starting 1 May 2022

(RM1,200 → RM1,500)

	Source: Company estimates, press releases & announcements
5	This document is strictly private, confidential and only for the information of the intended recipients. This document should not be copied,
distributed or reproduced in whole or in part, nor passed to any third party without the prior written consent of Hartalega.