PETALING JAYA: Industrial chemical provider Luxchem Corp Bhd’s net profit surged two-fold in the first quarter ended March 31, led by higher domestic sales recorded by its trading segment.
The group told Bursa Malaysia that its net profit in the January-March 2021 period increased to RM20.56mil as compared to RM9.99mil in the corresponding quarter a year earlier.
Earnings per share improved to 2.19 sen as compared to 1.11 sen a year earlier.
In a separate filing, Luxchem announced a single-tier interim dividend of 0.9 sen per ordinary share for the financial year ending Dec 31,2021 (FY21), payable on June 3. The group did not announce a dividend in the first quarter of FY20.
During the quarter in review, the group’s revenue rose 30.6% year-on-year (y-o-y) to RM227.87mil. Malaysia, which is Luxchem’s main market that contributed over 70% in revenue in the quarter in review, saw a 35% y-o-y increase in revenue contribution.
Its export markets also registered a 21% y-o-y higher revenue for the three-month period, with Vietnam, Australia, Singapore and Sri Lanka posting a sharp increase in contribution.
In terms of operating segments, Luxchem’s trading segment was the largest topline contributor, delivering RM188.6mil or 83% of the first quarter’s revenue. Meanwhile, the manufacturing segment contributed the remaining revenue of RM39.27mil.
Going forward, Luxchem said the group’s performance could be affected by the fluctuation in the US dollar-ringgit exchange rate, raw material price fluctuation, raw material demand and supply situation, competition and the current Covid-19 pandemic.
“The group will continue to improve its productivity and efficiency to face these external uncontrollable factors, ” it said.