SINGAPORE (Aug 10): Megachem announced that its 1H17 earnings nearly tripled to $2.3 million from $787,000 in 1H16.
Meanwhile, the group’s 1H17 revenue saw a slight 0.2% increase to $51.4 million compared to $51.3 million a year ago.
This was lifted by a significant increase in sales in Australia and Middle East markets of 65.3% and 44.5% respectively, while the Asean market sales increased marginally by 1.9%.
Profit before tax saw a 29.3% increase to $2.34 million in 1H17 from $1.81 million in 1H16.
This was due to higher share of profit of associated companies of $2.0 million, but was offset by $0.9 million arising from higher allowance for impairment of trade receivables from Venezuela and lower gross profit of $0.4 million.
Compared to 1H16, operating expenses increased by 9.5% or $1.1 million, out of which allowance for impairment of trade receivables from Venezuela accounted for S$0.9 million of the increase.
Other costs increase such as staff costs of $0.3 million was partially offset by reduction in professional fees of $0.1 million for certain corporate-related consultancy fees.
Excluding the allowance for impairment of trade receivables from Venezuela, operating expenses would have increased by $0.2 million or 1.8%.
Sidney Chew, executive chairman and managing director of Megachem says, “Going into the second half of the year, economic conditions are generally expected to remain favourable and we will leverage on this positive industry trend as we continue to intensify our efforts to grow our business.”
“At the same time, we intend to remain resilient by nurturing long term sustainable values through a sound business model, financial discipline and operational excellence - key foundation for our long term growth,” Chew adds.
Shares in Megachem last traded at 38 cents.
