Luxchem’s 3Q net profit falls 40% dragged by trading, manufacturing segments

KUALA LUMPUR (Oct 27): Luxchem Corp Bhd registered a net profit of RM8.78 million for the fiscal third quarter, a 40.26% decline from RM14.7 million a year earlier, dragged by poor performance at both its trading and manufacturing segments.

Revenue for the third quarter ended Sept 30, 2022 was down 11.27% to RM170.55 million from RM192.21 million, the group’s bourse filing showed.

For the cumulative nine-month period, the plastic material and resin manufacturer’s net profit fell 16.65% to RM43.2 million from RM51.83 million previously. Revenue slipped marginally to RM630.83 million from RM635.68 million.

On prospects, Luxchem said its business performance might be affected by several challenges such as the weakness of the ringgit against the US dollar, raw material price fluctuations, and the Russia-Ukraine conflict.

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

Luxchem shares were last traded at 54 sen, giving it a market capitalisation of RM577.73 million.