Texchem Resources Berhad posted a sharp improvement in second-quarter earnings for the financial period ended June 30, 2026, with profit before tax (PBT) more than doubling as stronger industrial demand, resilient semiconductor-related sales and a turnaround in its food division lifted overall performance.
The diversified group recorded revenue of RM309.5 million in the quarter, up 8.8% from RM284.4 million a year earlier. PBT surged 126.4% to RM12.0 million from RM5.3 million in the corresponding quarter of 2025. While PAT was up five fold to RM8 million RM1.5 million.
The improved performance was driven by stronger contributions across most of its business divisions, supported by favourable foreign exchange movements, strategic cost optimisation and higher demand from selected industries.
The Industrial Division emerged as the largest contributor, posting revenue of RM149.5 million compared with RM123.5 million a year earlier. PBT increased to RM4.2 million from RM1.0 million, supported by customers building inventory amid ongoing supply chain disruptions and geopolitical uncertainties, as well as new business secured from the medical and semiconductor sectors.
The Polymer Engineering Division maintained stable revenue at RM64.6 million, compared with RM65.0 million in the previous corresponding quarter. However, PBT edged higher to RM6.5 million from RM6.3 million, driven by continued strength in the data memory and wafer-related semiconductor segment, together with favourable foreign exchange gains.
Texchem’s Food Division returned to profitability during the quarter. Revenue rose to RM42.4 million from RM39.7 million, while the division recorded PBT of RM1.0 million compared with a loss before tax of RM1.6 million a year earlier. The improvement was mainly attributed to stronger fishmeal export sales, higher selling prices and positive currency movements.
As part of its business rationalisation strategy, Texchem Marine Labutta Limited ceased operations on June 30, 2026, following prolonged underperformance.
The Restaurant Division continued its operational restructuring efforts, recording revenue of RM70.4 million versus RM72.0 million previously. Despite the slight decline in sales, PBT improved to RM1.8 million from RM1.4 million, largely due to cost savings arising from the closure of loss-making outlets.
During the quarter, the division shut down two non-performing outlets as part of its ongoing optimisation programme.
Meanwhile, the Venture Business Division reported revenue of RM2.5 million, more than doubling from RM1.1 million a year ago, supported by stronger sales of specialised extruded sheets and TEXa products following increased orders from strategic customers.
The division also narrowed its loss before tax to RM0.5 million from RM0.8 million previously.
The group’s latest quarterly results reflect stronger operating momentum across its core industrial businesses while strategic restructuring measures continue to improve profitability in its consumer-facing operations. The growing contribution from semiconductor-related customers and recovery in the food segment also provide additional support to the group’s earnings outlook.
