GEORGE TOWN: Texchem Resources Bhd expects the business environment to remain challenging.
This, it said, was amid on-going global supply chain disruptions, combined with the impact of global inflationary pressures such as raw material shortages and rising cost, volatility in foreign exchange rates, a drastic spike in shipping and freight cost, resulting in longer delivery lead time and Covid-19 related restrictions.
"In addition, the recent geopolitical tension in Europe arising from the Ukraine crisis is expected to create further economic uncertainty ahead," Texchem said in a statement today.
Despite these headwinds, it noted that with the encouraging momentum of recovery of economic activities in both Malaysia and other ASEAN countries where Texchem was operating, the group would continue to remain vigilant and agile in its bid to increase revenue and boost cost control measures and operational efficiencies.
"The group had remained resilient and continued to deliver satisfactory performance in the fourth quarter of 2021, given the challenges faced and continue to navigate.
"These challenges," Texchem added, "include global supply chain constraints, price hikes and Covid-19-related restrictions, which are still relevant factors to consider in 2022."
The company said in the fourth quarter of 2021, the easing of the lockdowns and containment measures including the resumption of economic activities during various phases of the National Recovery Plan helped it to achieve higher revenue of RM323.8 million from RM270.3 million during the corresponding period in 2020 and a pre-tax profit of RM20.5 million from a pre-tax profit of RM15.4 million previously.
This was significantly contributed by the improvement in the group's food division and the recovery of its restaurant division.
"The lifting of the dine-in restrictions and the resumption of social activities enabled the group's restaurant operations to bounce back strongly and provided the opportunity to open new Sushi King restaurants at Pavilion Bukit Jalil and Eco Grandeur Puncak Alam."
Texchem's group net cash position was strengthened to RM95.4 million as of Dec 31, 2021, up from RM79.0 million as of December 31, 2020, thus reducing the group's gearing from 0.25 to 0.19.
Its quarterly earnings per share rose to 13.71 sen from 8.09 sen a year ago.
The results brought the group's full-year revenue to RM1.1 billion (RM1.0 billion recorded for its 2020 financial year) and a pre-tax profit of RM30.7 million (RM1.4 million for 2020 financial year).
The full-year earnings per share were 20.54 sen, reversing the loss per share of 1.96 sen in 2020.
