Texchem sees Q3 net loss on food division drag

PETALING JAYA: Texchem Resources Bhd saw a net loss of RM2.33 million from a RM1.65 million net profit for the third quarter ended Sept 30, 2016 mainly due to losses in the food division due to the reduction of global selling prices of key products.

This was on marginally lower revenue of RM258.77 million for the quarter, compared with RM262.48 million for the quarter ended Sept 30, 2015.

The company expects the business environment for 2016 to remain challenging due to the prevailing global economic condition.

However, the restaurant division is expected to improve its performance as it expects domestic consumer demand to improve in tandem with approaching festive seasons.

Similarly, the food division is expected to operate in a more favourable environment moving forward as seafood landing and demand influence the business positively in the following months.

Meanwhile, the industrial and polymer engineering divisions continue to be influenced by global demand and their performance would be dependent on the expected gradual recovery of the global economy.

For the nine-month period ended Sept 30, 2016, the company registered net losses of RM8.06 million, compared with RM7.19 million net profit for the same period in 2015.

Revenue for the period was marginally lower at RM746.07 million,compared with RM776.27 million for the nine-month period ended Sept 30, 2015.