Texchem reports over 15-fold profit jump in 2Q, declares 8 sen dividend

Executive chairman Tan Sri Fumihiko Konishi - Filepic

KUALA LUMPUR: Texchem Resources Bhd, which saw its net profit jump almost 16 times in the second quarter ended June 30 to RM6.73mil, expects its performance to remain satisfactory in the coming quarters.

“The board is cautiously optimistic that the overall prospect of the group for the coming quarters will remain satisfactory mainly on the recovery of restaurant operation and additional strategic business initiatives to improve the bottom line,” Sushi King owner and operator said in a filing with Bursa Malaysia.

Its revenue in the second quarter rose 15.4% to RM301.46mil from RM261.2mil a year earlier while earnings per share (EPS) grew to 5.70 sen against 0.35 sen last year.

Texchem has declared an interim dividend of 8.0 sen per share for the financial year ending Dec 31, 2022.

In the first half to June 30, Texchem posted a net profit of RM19.81mil, or 16.78 sen EPS, up 180.7% from RM7.06mil, or 5.85 sen EPS last year while revenue rose 15.4% to RM608.95mil against RM527.93mil previously.

“Having started the financial year on a strong footing, we are very happy to have kept the ball rolling by delivering the best-ever first half bottom-line performance in our history

“This indicates that the transformation strategies we put in place continued to bear fruit from all our business units, which anchored the growth of our 1H22 performance,” executive chairman Tan Sri Fumihiko Konishi said in a separate statement.

"Meanwhile, we are mindful of the softer quarter-on-quarter performance, which were anticipated as a weaker quarter for our food division, due to the fishing ban imposed by the Myanmar Government from April to June 2022, along with a decline in sales for Sushi King due to Ramadhan which impacted the restaurant division in Q2,” he said.

Going forward, Fumihiko said the group would continue to pursue the implementation and execution of its strategic plans across all core business divisions, which have been charting good progress.

“At the same time, we are also cognizant of the other ongoing challenges like rising interest rates to tame inflationary pressures, geopolitical tensions and emergence of new Covid-19 variants. We shall remain mindful of these challenges and the group will continue to make efforts to deal with it,” he said.

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