This article first appeared in The Edge Financial Daily, on May 6, 2016.

KUALA LUMPUR: Texchem Resources Bhd swung into the red with a net loss of RM2.21 million in the first quarter ended March 31, 2016 (1QFY16) from a net profit of RM4.99 million a year ago on foreign exchange (forex) loss and dismal performance across all business segments.

According to its bourse filing yesterday, it recognised a forex loss of RM3.5 million, which was mainly from its industrial and polymer engineering and food divisions due to a stronger ringgit.

Quarterly revenue was 7.3% lower at RM256.84 million versus RM277.09 million in 1QFY15. No dividend was declared for the current quarter under review.

Going forward, the polystyrene products manufacturer expects the business environment for 2016 to remain challenging due to the prevailing global economic condition.

It expects the restaurant division’s performance to improve on anticipation that domestic consumer demand will improve after suffering from the negative impact of the goods and services tax in the second half of 2015.

“Similarly, the food division is expected to operate in a more favourable environment moving forward, as seafood landing and demand [will] influence the business positively in the following months,” the group said.

On its industrial and polymer engineering divisions, it said both segments continue to be influenced by global demand and that their performance would be dependent on the expected gradual recovery of the global economy.