Luxchem posts lower 2Q net profit, revenue

LUXCHEM Corp Bhd’s latest quarterly filing saw the group taking a hit profit-wise, with the industrial chemicals supplier being weighed down by its manufacturing and trading segments.

In a bourse filing today, Luxchem posted a net profit for the second quarter ended June 30, 2020 (2Q20) that fell 23.45% to RM7.57 mil from RM9.89 mil for the same period last year.

Revenue dropped as well to RM140.29 mil from RM188.39 mil, mainly due to its trading segment.

Earnings per share slipped to 0.85 sen versus 1.13 sen previously.

Still, Luxchem declared a single-tier interim dividend of 1 sen per share for the financial year ending Dec 31, 2020. This will be paid on Sept 30, the company said.

It is an investment holding company whose subsidiaries market and distribute industrial chemicals and materials in industries involved in PVC rubber, latex and FRP/coating; manufacturing unsaturated polyester resins); and producing rubber latex chemical dispersions, latex processing chemicals, latex surfactant, dispersant & specialty chemicals for the latex industry.

For the six months ended June 30, Luxchem’s net profit slipped to RM17.55 mil from RM19.42 mil. Revenue clocked in at RM314.77 mil against RM390.84 mil.

The group’s performance, said Luxchem, was affected by fluctuations in the US dollar/ringgit exchange rate as well as in raw material price, plus competition and the impact from the Covid-19 pandemic.

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

At the time of writing, Luxchem’s share price was at 86 sen or 1.17% higher, giving the company a market capitalisation of RM774.87 mil. – July 29, 2020

Share on facebook
Share on twitter
Share on whatsapp
Share on email

Subscribe and get top news delivered to your Inbox everyday for FREE

Latest News