KUALA LUMPUR (Feb 15): Luxchem Corp Bhd’s net profit for the fourth quarter ended Dec 31, 2018 (4QFY18) fell 8% to RM8.77 million from RM9.49 million in the previous year, on lower margins and higher expenses.

Revenue rose 5% in the quarter to RM206.25 million, compared to RM197.23 million a year ago. Earnings per share fell to 1.02 sen, from 1.13 sen. 

Despite the lower net profit, the group announced an interim dividend of 1.25 sen per share for the financial year ended Dec 31, 2018 (FY18) — to be paid on a date to be fixed. This brings its FY18 payout to 4.44 sen versus 4.86 sen for FY17.

According to the industrial chemical supplier, its lower gross profit margin and higher other operating expenses during the quarter had contributed to a lower profit after tax, though this was compensated slightly by lower other expenses. The improved revenue was supported by higher contribution from its trading segment.

For the full year, Luxchem’s net profit fell 7% to RM37.98 million from RM40.74 million a year ago, despite revenue rising 1% to RM814.09 million from RM806.71 million.

Moving forward, the group said its performance could be affected by fluctuations in the ringgit versus US dollar exchange rate, raw material price fluctuations, raw material demand, as well as supply situations and competition.

“The group will continue to improve its own productivity and efficiency to face these external uncontrollable factors,” it said.

Luxchem shares closed 2.5 sen or 4.42% lower at 54 sen today, for a market capitalisation of RM466.33 million.