KUALA LUMPUR (July 23): Industrial chemicals and materials company Luxchem Corporation Bhd (KL:LUXCHEM) reported its highest quarterly earnings in five years, driven by stronger contributions from both its trading and manufacturing segments.

Net profit for the three months ended June 30, 2026 (2QFY2026) more than doubled to RM18.48 million from RM8.89 million a year ago, according to the group’s bourse filing on Thursday (July 23).

The latest quarterly earnings marked the group’s strongest performance since 1QFY2021, when it recorded RM20.56 million in net profit.

Quarterly revenue increased 7.97% year-on-year (y-o-y) to RM202.71 million — marking its highest since 4QFY2024, when it made RM205.94 million — from RM187.74 million posted in 2QFY2025.

The group declared a single tier interim dividend of one sen per share, with an ex-date of Aug 6 and payable on Aug 28.

For the first six months of FY2026 (1HFY2026), net profit climbed 62.88% to RM31.7 million from RM19.46 million a year earlier, while revenue edged up 0.55% to RM379.88 million from RM377.81 million.

The manufacturing segment remained the group's biggest earnings contributor during 1HFY2026, with profit after tax rising 56% to RM25.57 million. The company saw revenue rise 10% to RM151.72 million in 1HFY2026 from RM137.4 million previously.

Its trading division's profit almost doubled to RM11.68 million from RM6.05 million a year ago, despite revenue falling 5% to RM228.15 million from RM240.41 million.

The group, which exports to more than 17 countries, said its outlook remains affected by external challenges such as currency fluctuations, rising raw material costs, supply chain disruptions, geopolitical tensions and trade uncertainties.

To manage these risks, it will focus on improving productivity, controlling costs and taking a cautious approach to financial management and investments to support long-term growth and profitability.

At Thursday’s market close, Luxchem shares were unchanged at 40.5 sen, valuing the group at RM433 million.