KUALA LUMPUR: Texchem Resources Bhd’s (TRB) net loss widens to RM3.59 million for the fourth quarter (Q4) ended December 31, 2023 (FY23) from RM254,000 posted in the same quarter last year, mainly due to weak market demand.
Revenue for the quarter stood at RM241.28 million from RM251.76 million posted in Q4 last year.
For FY23, TRB reported a revenue of RM993.5 million compared to RM1.14 billion posted in FY22.
This was mainly due to lower sales due to high interest rates, inflation, and inventory adjustments in specific industries we serve.
The situation was further compounded by a rise in input, operating costs and tax expenses from profitable entities within the company, which led to a net loss of RM10.8 million for FY23, which included share-based payments amounting to RM3.0 million.
Executive chairman Tan Sri Fumihiko Konishi said FY23 was an arduous year for the company given the demanding business operating landscape arising from various macroeconomic headwinds.
“Nevertheless, we put forth our best effort to minimise the impact.
“Moving forward, while we anticipate the market to remain volatile, we are steadfast in our strategy to enhance our capacity and capabilities.
“This is to prepare ourselves to seize the opportunities and ride on the recovery of the sectors we serve, especially for the polymer engineering division, which serves end-user international clients in the semiconductor, medical life sciences and memory storage solutions sectors,” he said in a statement.
Fumihiko said TRB has continued to pursue strategies for its industrial division, aimed at expanding market share and strengthening long-term relationships with principals and customers while riding on improving petrochemical prices.
“In our restaurant and food divisions, acknowledging the lower revenue, we continue to drive operational improvements and streamline supply chain management to reduce costs and remain competitive.
“On balance, we maintain our cautious optimism for FY24 and focus on executing our key strategies as we forge ahead,” Fumihiko said.
Despite the challenging environment, TRB generated a net operating cash flow for FY23, amounting to RM81.9 million.
The company has consistently produced positive net operating cash flow for over 20 years.
