KUALA LUMPUR: Texchem Resources Bhd’s net profit for the first quarter ended March 31, 2015, jumped more than five times to RM4.99mil, from RM927,000 due to higher net profit from industrial, food, restaurant and other divisions.
Its revenue surged 14.86% to RM277.09mil for the quarter compared to RM241.34mil for the corresponding period a year ago cushioned by higher revenue from various divisions.
Meanwhile, its industrial division’s revenue for the quarter was up 7.9% to RM109.3mil, from RM101.3mil due to improved results of overseas subsidiaries.
For its food division, the company’s revenue soared 32.7% to RM61.3mil for the quarter compared to RM46.2mil for the corresponding period a year ago mainly attributed by higher sales, improved margins, lower crude oil prices and favourable exchange rates.
On the other hand, its restaurant division recorded a higher revenue of RM60.1mil, from RM52.1mil due to higher profit of Sushi King restaurants and reduction in losses by new concept restaurant.
For the current financial year,Texchem expects the business environment to remain challenging due to global economic conditions.
“However, as the group’s business is diversified, the restaurant division is expected to continue its good performance as domestic consumer demand remains strong.
“Similarly, the food division is expected to continue operating in a favourable environment as exchange rates, seafood landing and demand continues to be positive influence to the business,” it said.
Moving forward, Texchem Resources noted that the industrial and polymer engineering division would be affected by global demand. Hence, the performance of the divisions would be dependent on expected gradual recovery of the global economy.
