KUALA LUMPUR (April 25): Luxchem Corp Bhd’s net profit for the first quarter ended March 31, 2024 (1QFY2024) surged over 54% to RM11.56 million or 1.08 sen per share from RM7.5 million or 0.7 sen per share a year earlier on the back of stronger earnings from both its trading and manufacturing segments.

The industrial chemical and material group’s revenue rose 19.8% to RM183.15 million versus RM152.83 million a year ago as driven by its trading and manufacturing segments, according to a bourse filing on Thursday.  

Luxchem’s trading segment is involved in the import, export, and distribution of latex and other products, while the manufacturing segment is involved in the manufacturing and trading of resin, industrial cleaning agents and specialty chemicals and additives for the rubber glove industry.

The group’s trading segment saw a 14% rise in revenue to RM117.48 million in 1QFY2024 from RM102.62 million a year prior. Meanwhile, its manufacturing segment’s revenue climbed 31% to RM65.66 million from RM50.22 million previously.

There were no dividends proposed or declared for the current quarter under review.  

Looking ahead, Luxchem said it will continue to improve its productivity and efficiency in the face of several external factors that may affect its performance.

These include the US dollar to ringgit exchange rate in the rising interest rate environment, raw material price and demand fluctuations, supply situation, stiff competition and the ongoing global geopolitical conflict.

At the time of writing, shares in Luxchem were down one sen or 1.79% at 55 sen, giving the company a market capitalisation of RM588.43 million.