Texchem's net loss narrows in Q3

PETALING JAYA: Texchem Resources Bhd's net loss in the third quarter (Q3) ended Sept 30, 2017 narrowed to RM1.38 million, from RM2.33 million in the previous corresponding quarter, attributed by higher revenue and operating profit.
Revenue for the quarter grew 9.13% to RM282.39 million, compared with RM258.8 million in the same period last year, on the back of higher revenue from the group’s industrial and restaurant divisions.
For the nine months period, its net loss slightly increased by 0.11% to RM8.07 million, from RM8.06 million a year ago, while revenue rose 7.88% to RM824.3 million, against RM764.07 million previously.
In a filing with Bursa Malaysia today, Texchem said despite the higher revenue achieved during the quarter, its operating profit was affected by the closure costs of RM5.2 million arising from cessation of business by a subsidiary.
On prospects, the group said it expects the business environment for 2017 will continue to remain challenging.
However, the group expects its restaurant division to improve its performance in the second half of the year through customer activation programs as well as expansion in the local and regional market.
The performance of its food division is also expected to improve, although it would still depend on the continual improvement of landing of marine products.
In addition, the group said the industrial and polymer engineering divisions are expected to perform better in line with the improvements seen in the industrial and technology sectors of the global economy.