PETALING JAYA: Nextgreen Global Bhd’s net profit rose 4% to RM10.50 million in the second quarter ended June 30, 2026 (Q2’26), from RM10.11 million a year earlier, mainly driven by higher contributions from its manufacturing division.
Revenue increased 29% to RM26.77 million from RM20.73 million, supported by higher sales of pulp and paper products and fertilisers, including sales of NexCompost solid fertiliser following the completion of the powder production line’s testing and commissioning in Q1’26.
Gross profit rose 6% to RM16.04 million from RM15.16 million, although gross profit margin narrowed to 59.9% from 73.1% due to the higher contribution from NexCompost, which carries a lower margin than NexBooster. Other income more than doubled to RM5.39 million from RM2.21 million, mainly due to higher sales of recovered pulping process residue, or black liquor.
However, operating expenses increased 46% to RM8.56 million from RM5.87 million, while net finance costs almost doubled to RM2.77 million from RM1.41 million. As a result, profit before tax was broadly unchanged at RM10.09 million versus RM10.09 million previously.
For the six months ended June 30, 2026 (H1’26), net profit rose 7% to RM18.45 million from RM17.25 million, while revenue increased 28% to RM44.57 million from RM34.82 million. Profit before tax grew 3% to RM17.67 million from RM17.22 million.
The manufacturing division remained the key earnings contributor, with its H1’26 revenue rising 46% to RM44.56 million and profit increasing 39% to RM27.92 million, mainly due to higher fertiliser sales.
Looking ahead, Nextgreen said testing and commissioning of its solid fertiliser granule production line is expected to be completed by October 2026, with both production lines expected to contribute further revenue towards the end of the financial year. It is also progressing a capacity upgrade of its Phase 1A pulp operations from about 10,000 tonnes to 15,000 tonnes per annum.
The group also continues to progress the proposed 150,000-tonne-per-annum bleached chemical EFB pulp mill under Phase 2A of its Green Technology Park in Pekan, Pahang, while feasibility work is underway for the proposed Phase 2B development.
