KUALA LUMPUR (April 30): Texchem Resources Bhd (KL:TEXCHEM) saw its net profit spike nearly threefold in the first quarter this year, driven by stronger contributions from most of its business divisions, as well as lower finance costs and tax expenses, and higher other income.

The group’s operations include industrial, polymer engineering, food, restaurant and venture businesses.

Net profit rose to RM2.57 million in the first quarter ended March 31, 2026 (1QFY2026) from RM870,000 a year earlier, the Sushi King owner said in a bourse filing on Thursday.

Operations profit stood at RM10.72 million in 1QFY2026, a 6.88% improvement from RM10.03 million posted a year ago.

Quarterly revenue edged up 1.8% to RM287.45 million in 1QFY2026, from RM282.41 million a year ago.

No dividend was declared for the quarter under review. The company last declared a dividend of 13 sen per share in FY2022.

Its tax expenses dropped 20.2% to RM2.79 million in 1QFY2026, compared to RM3.5 million a year earlier, while finance costs were 6.77% lower at RM4.88 million compared with RM5.23 million during the same period last year.

Its other income rose 35.28% to RM4.87 million in 1QFY2026, from RM3.6 million a year before.

Looking ahead, Texchem said it remains cautious on the outlook, citing global economic uncertainties, inflationary pressures and geopolitical tensions that could pose challenges.

However, it expects its polymer engineering and industrial divisions to benefit from growth in semiconductor, artificial intelligence and medical and life sciences industries.

The food division, it said, will continue to emphasise operational efficiencies, shifting and expanding to more viable production sites.

For its restaurant division, it maintains a cautious outlook, as the industry continues to face headwinds from more cautious household spending in response to rising global economic uncertainties.

Shares of Texchem closed half a sen or 0.68% higher at 74 sen on Thursday, valuing the company at RM86 million.