Luxchem sees 9.71% fall in Q3 net profit on higher expenses

PETALING JAYA: Luxchem Corp Bhd saw a 9.71% decline in net profit for the third quarter ended September 30 to RM8.99 million against RM9.96 million a year ago, due to higher administrative expenses, share option expenses and other operating expenses.
However, the group's revenue for the quarter under review rose 4.95% to RM188.23 million from RM179.36 million in the same quarter last year, due to higher raw material prices and higher exchange rate.
The higher administrative expenses incurred by Luxchem, which is predominantly involved in marketing, manufacturing and producing rubber related products, was attributable to higher realised and unrealised foreign exchange loss and assessment fee while the increase in operating expenses by RM950,000 was due to impairment loss on trade receivable amounting to RM870,000 for the current year.
"The group's performance can be affected by fluctuations in US dollars to ringgit exchange rates, raw material price fluctuations, raw material demand and supply situations and competition. The group will continue to improve its own productivity and efficiency to face these external uncontrollable factors," its board of directors said in a Bursa Malaysia filing.
Luxchem's net profit for the first nine months of the current financial year stood at RM31.26 million, 4.22% higher than the cumulative earnings of RM30 million for the same period last year.
Revenue for the period increased by 18.3% from RM515.18 million last year to RM609.48 million in the current financial year.
Luxchem shares closed 1.18% lower at 83.5 sen at mid-day with some 543,600 shares traded.