Texchem Resources Bhd announced its third quarter and nine-month financial results, cumulatively, its 9MFY23 revenue came in at RM752.2 million as compared to RM891.5 million a year ago.
The Group’s performance continued to be affected by softened demand as well as a rise in operating costs arising from the global economic uncertainties.
As a result, Texchem reported a loss before tax of RM0.3 million for the current period under review, which included share-based payments amounting to RM2.2 million. After adjusting for ESOS, Texchem would have achieved a profit before
tax of RM1.9 million. Consequently, due to higher tax expenses, Texchem posted a net loss of RM7.2 million for 9MFY23. The increased tax expenses were largely owing 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.
For the current quarter under review, Texchem’s revenue grew 1.2% QoQ to RM243.3 million from RM240.5 million in 2QFY23. This was predominantly owing to improvements from the Polymer Engineering and Restaurants Division it said. PBT improved to RM1 million for 3QFY23 from a loss before tax of RM3.5 million, with that, the net loss for the current quarter narrowed to RM0.8 million vis-à-vis RM6.3 million in 2QFY23.
Meanwhile, Texchem’s efforts to reinforce its cash flow continued to gain positive momentum. The Group generated another healthy net operating cash flow (“NOCF”) of RM34.1 million for the quarter under review, which brought cumulative NOCF to
RM71.2 million. Net gearing continued to improve to 0.40x as of end-3QFY23 from 0.47x a quarter ago.
