Tex­chem sees Q3 net loss on food di­vi­sion drag

The Sun (Malaysia) - - SUNBIZ -

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.

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