KUALA LUMPUR (Oct 27): Luxchem Corp Bhd’s net profit jumped 65% to RM14.2 million for the third quarter ended Sept 30, 2020 (3QFY20), from RM8.6 million in the previous corresponding quarter (3QFY19).

Quarterly revenue, however, grew barely 2% to RM191.3 million from RM187.5 million a year earlier.

The group attributed the improved earnings performance to higher contribution from its trading segment.

For the nine months to Sept 30 (9MFY20), net profit rose 13% to RM31.8 million from RM28.1 million in the same period a year earlier, while revenue contracted 13% to RM506 million from RM578.3 million.

Its trading segment reported total revenue of RM413.2 million for the period, accounting for almost 82% of its revenue for 9MFY20, while the balance was contributed by its manufacturing operations.

During the nine-month period, the group saw declines in revenue across most of its geographical segments. Revenue generated from Malaysia — Luxchem’s biggest market — fell 27% to RM63.7 million, while revenues from Indonesia and Vietnam declined 27% and 6% respectively.

Still, there are countries where the company achieved higher revenues year-on-year, including Thailand (up 19% at RM17.2 million), Bangladesh (up 27% at RM2.7 million) and Australia (up 36% at RM2.6 million).

On its prospects, the group said its performance ahead could be affected by fluctuations in foreign exchange rates as well as the price, demand and supply of raw materials amid the current conditions due to Covid-19.

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

Luxchem closed 5.5 sen or 6.29% higher at 93 sen, giving a market capitalisation of RM833.1 million.