By Sulhi Azman

KUALA LUMPUR (Oct 30): Texchem Resources Bhd’s, which owns the Sushi King outlet chains, net loss widened to RM622,000 for the third quarter ended Sept 30, 2014 (3QFY14) from RM505,000 as the company incurred a closure cost of RM2.4 million.  

However, quarterly revenue grew 21% to RM281.52 million from RM232.82 million previously on higher sales contribution from its industrial, food and restaurant divisions.

Texchem did not declare any dividend for 3QFY14.

The company’s net profit for the cumulative nine months ended Sept 30, 2014 (9MFY14) plunged 94% to RM571,000 from RM8.83 million, mainly due to fair value gain of RM11 million on re-measurement of its associate when it became its subsidiary in 3QFY13.

Revenue came in 6% higher to RM757.99 million from RM716.59 million.

On segmental basis, Texchem’s industrial division contributed 36% to its cumulative revenue, while polymer (18%), food (29%) and restaurant (17%).

On its prospect, Texchem expects its business environment in 4QFY14 to remain challenging due to the prevailing global economic condition.

“As the group’s business is diversified, the restaurant division is expected to continue its good performance as domestic consumer demand remains strong. Similarly, the food division is expected to continue operating in a favorable environment as exchange rates, seafood landing and demand continues to be positive influence to the business,” it said in a filing to Bursa Malaysia this evening.

“Meanwhile, the industrial division and polymer engineering division continue to be influenced by global demand and their performance would be dependent on the expected gradual recovery of the global economy,” it added.

According to its latest annual report, Texchem currently operates a total of 87 restaurants, including 80 Sushi King restaurants, three Goku Raku restaurants, two Miraku restaurants, one Waku Waku restaurant and one Blu Med Restaurant.

The stock closed at 79 sen today, giving it a market capitalisation of RM98 million.