KUALA LUMPUR (Feb 22): Luxchem Corp Bhd's net profit jumped to RM11.07 million in its fourth quarter ended Dec 31, 2023 (4QFY2023), over four times the RM2.48 million it made in the same quarter a year earlier, lifted by stronger contributions from both its trading and manufacturing segments.

Earnings per share grew to 1.03 sen in 4QFY2023 from 0.23 sen previously, the plastic material and resin manufacturer's bourse filing showed. Revenue rose 3.15% to RM177.36 million from RM171.94 million.

The group declared an interim dividend of 0.8 sen per share, payable on March 21, 2024. This brings its payout so far for FY2023 to 1.4 sen, 30% less than the two sen it paid in the corresponding period in FY2022.

During 4QFY2023, the group's trading segment registered a 95% jump in profit after tax (PAT) to RM4.99 million from RM2.56 million in 4QFY2022, while its manufacturing segment’s PAT surged to RM8.83 million from RM10,822.

Despite the strong lift from its fourth quarter results, the group's full FY2023 bottomline fell 18.88% to RM37.05 million from RM45.68 million in FY2022, as annual revenue shrank 18.59% to RM653.53 million from RM802.53 million, amid lower sales in both its trading and manufacturing businesses.

Notably, its latest annual net profit and revenue are at their lowest in nine years, after the group logged an audited net profit of RM21.96 million in FY2014, on revenue of RM603.52 million.

On its outlook, the group only said its performance can be affected by several key challenges such as exchange rates between the greenback and ringgit in a rising interest rate environment, raw material price fluctuations, raw material demand and supply situations, stiff competition and ongoing global geopolitical conflict.

Hence, the group said it will continue to improve its own productivity and efficiency to face these external uncontrollable factors and challenges.

On Thursday, Luxchem’s share price closed down 0.5 sen or 1% to 50.5 sen, bringing the stock a market capitalisation of RM540 million.