Luxchem’s 1Q net profit declines 22% on lower income from trading segment

KUALA LUMPUR (April 28): Luxchem Corp Bhd saw its net profit for the first quarter ended March 31, 2022 (1QFY22) decline 21.73% year-on-year to RM16.09 million from RM20.56 million, despite seeing a higher revenue, due to lower income from the trading segment.

Quarterly revenue rose 5.11% to RM239.52 million from RM227.87 million a year ago, contributed by the group’s manufacturing segment, its filing with the local bourse on Thursday (April 28) showed.

On a quarterly basis, the group’s net profit slipped 3% from RM16.59 million for 4QFY21 as revenue fell 17.03% from RM288.69 million.

On its prospects, Luxchem said the group’s performance can be affected by fluctuations in US dollar-ringgit exchange rates, fluctuations in raw material prices, raw material demand and supply situations, competition, the current Covid-19 situation as well as the conflict between Russia and Ukraine.

“The group will continue to improve its own productivity and efficiency to face these external uncontrollable factors and challenges,” it added.

At the noon break on Thursday, Luxchem shares settled at 68.5 sen, higher by half a sen or 0.74%. This gave the plastic material and resin manufacturer a market capitalisation of RM732.86 million.