The company, which is rebuilding its warehouse, expects to complete this by end of this year. The new warehouse can store more than 5,000 pallets and can help reduce its reliance on other warehousing operators and therefore incur lower storage costs. Megachem aims to handle 70% of its storage needs in house.
Chemicals supplier Megachem, which suffered a warehouse fire in FY2023, has reported a mixed set of 1HFY2025 results. Earnings was down 15.8% y-o-y to $1.68 million on the back of a slight 1.7% drop in revenue to $64.1 million.
However, the company was able to improve its gross margin from 23.8% in 1HFY2024 to 1HFY2025. In addition, to signal confidence in its financial recovery and commitment to improve shareholders' value, MegaChem plans to pay an interim dividend of 0.5 cents per share.
