KUALA LUMPUR (Oct 24): Plastic material and resin manufacturer Luxchem Corp Bhd’s (KL:LUXCHEM) net profit for the third quarter fell by more than 26%, mainly due to higher administrative expenses.
Net profit for the three months ended Sept 30, 2024 (3QFY2024) was RM6.67 million, compared with RM9.07 million a year ago.
However, revenue rose by 18.29% to RM196.09 million from RM165.78 million, thanks to both the trading and manufacturing segments.
In an announcement to Bursa Malaysia, Luxchem warned that the group’s performance could be affected by several key challenges, including US dollar/ringgit exchange rates, fluctuations in raw material prices, the demand and supply situation for raw materials, stiff competition, and ongoing global geopolitical conflicts.
Nonetheless, the group said that it will continue to improve its productivity and efficiency to address these uncontrollable external factors and challenges.
For the cumulative nine months ended Sept 30, 2024 (9MFY2024), net profit increased by 17.11% to RM30.43 million from RM25.99 million in the same period a year earlier, as revenue grew by 23.79% to RM589.44 million, compared with RM476.17 million for 9MFY2023.
Shares of Luxchem settled half a sen or 0.98% lower at 50.5 sen during Thursday’s noon break, giving the company a market capitalisation of RM545.6 million.