Texchem-Pack reports another quarterly loss on rising costs amid lower revenue

Malaysia-based Texchem-Pack Holdings has posted another quarterly loss.

The mainboard-listed company announced a second quarter net loss of RM4.2 million, taking its half-year loss to RM8.3 million.

In contrast, it made RM535,000 in three months to June 30 last year.

Second quarter revenue fell by 13 per cent to RM41 million, mainly due to lower contribution from the thermoformed products business segment, following a reduction in orders from customers in the data storage industry.

Pricing pressure and increasing operating cost resulted in a decline in gross profit to RM6 million from RM9.7 million previously.

Loss per share amounted to three sen, reversing from earnings of 0.38 sen previously while net asset value per share shrank to 45.58 sen compared to 51.18 sen as at Dec 31.

The group expects demand for its products to remain soft, especially from the consumer electronic and hard disk drive industry as a result of declining demand for PCs.

While this continues to add pressure to performance, it wil intensify its efforts to diversify its products portfolio to the medical devices/life science and wafer shipper business segments, which enjoy healthy demand.