Texchem Resources braces for challenging 2023

KUALA LUMPUR: Texchem Resources Bhd expects the rest of 2023 to stay demanding especially given the recent geopolitical tensions and appreciation of US dollar against ringgit, according to executive chairman Tan Sri Fumihiko Konishi.

“Our focal point remains on driving business competitiveness by leveraging on our solid fundamentals. At the same time, we are working to improve our margins by enhancing our operational productivity.

“On a whole, we will leverage on our strengths to navigate through any obstacles that may arise and emerge stronger than before,” he said in a statement.

In the third quarter ended Sept 30, Texchem posted a net loss of RM750,000, or loss per share of 0.64 sen compared with a net profit of RM2.35mil, or earnings per share of 1.99 sen.

Revenue for the quarter fell 13.9% to RM243.3mil from RM282.6mil.

For the first nine months, it posted a net loss of RM7.25mil from a net profit of RM22.2mil while revenue declined 15.6% to RM752.2mil against RM891.5mil previously.

The group generated another healthy net operating cash flow (NOCF) of RM34.1mil for the quarter under review, which brought cumulative NOCF to RM71.2mil.

Its net gearing continued to improve to 0.40x as of end-3Q23 from 0.47x a quarter ago.

“Although some central banks have slowed down the interest rate hikes as inflation has somewhat moderated, nevertheless, inflationary pressures remain high and the operating environment continues to be demanding.

During the quarter, while our restaurant and food divisions continued to be impacted by the intense competition and inflationary cost pressures in the F&B services. Our polymer engineering division experienced some rebound from the high-tech sector, particularly semiconductor that improved our quarter-on-quarter performance,” Fumihiko said.