Texchem Resources Bhd in its first quarter financial performance reports has warned of challenging market uncertainties as its revenue came in below its 2022 figures.
On a quarter-on-quarter basis, the group’s revenue rose 6.6% to RM268.5 million from RM251.8 million in the immediate preceding quarter supported by higher sales from the industrial and food divisions. In tandem with this, it reported a profit before tax of RM2.2 million for the current quarter under review as compared to RM1.7 million in 4QFY22.
As compared to the previous year’s corresponding quarter (“1QFY22”), Texchem’s revenue stood lower at RM268.5 million in 1QFY23 versus RM307.5 million in 1QFY22 this the company said was due to its industrial and polymer engineering divisions being impacted by softer demand. Subsequently, PBT declined from RM18.9 million recorded in 1QFY22 as compared to RM2.2 million in the current quarter under review, predominantly owing to higher input costs in addition to weaker market demand.
Commenting on the financial performance Executive Chairman of Texchem, Tan Sri Dato’ Seri (Dr) Fumihiko Konishi said “We are cognizant of the soft 1QFY23 performance as the current business operating landscape remains highly challenging due to market uncertainties. Meanwhile, our restaurant division is affected by rising input cost, which we are proactively managing. Overall, we are confident of the long-term growth prospects due to the diversified business and solid fundamentals built across the core business divisions,”
Sequentially, Texchem registered a net loss of RM0.2 million for the quarter under review as a result of the aforementioned factors along higher tax expenses. The disproportionate tax charge for 1QFY23 was mainly due to certain expenses or losses being disallowed for tax purposes as well as non-availability of Group tax relief in respect of losses incurred by certain subsidiary companies.
