Texchem posts lower 2Q22 net profit to RM6.7m

TEXCHEM Resources Bhd saw its second quarter of 2022 (2Q22) net profit fell 49% to RM6.73 million compared to the 1Q22 with RM13.1 million.

However, its cumulative net profit rose 16 times from RM424,000 the corresponding quarter last year, attributable to the economic reopening which involved recovery of the restaurant division and the reopening of international borders.

Its earnings per share rose to 5.7 versus 0.35 a year ago.

The company said in an exchange filing yesterday that it recorded RM609 million of revenue for the first half of financial year 2022 (1H22), representing a jump of 15.4% year-on-year from RM527.9 million in the previous year’s corresponding period.

“Having started the financial year on a strong footing, we are very happy to have kept the ball rolling by delivering the best-ever first half bottom-line performance in our history. 

“This indicates that the transformation strategies we put in place continued to bear fruit from all our business units, which anchored the growth of our 1H22 performance,” said Texchem chairman Tan Sri Dr Fumihiko Konishi (picture).

“Meanwhile, we are mindful of the softer quarter-on-quarter performance, which were anticipated as a weaker quarter for our food division, due to the fishing ban imposed by the Myanmar government from April to June 2022, along with decline in sales for Sushi King due to Ramadhan which impacted the restaurant division in the 2Q,” he added.

Moving forward Konishi said the company continues to pursue the implementation and execution of its strategic plans across all core business divisions, which have been charting good progress. 

“At the same time, we are also cognizant of the other ongoing challenges like rising interest rates to tame inflationary pressures, geopolitical tensions and the emergence of new Covid-19 variants.

“We shall remain mindful of these challenges and the group will continue to make efforts to deal with it,” he added.

In the current quarter under review, the company declared an interim dividend of eight sen per share for the financial year ending Dec 31, 2022.  TMR / source Texchem Group’s Facebook