Chemicals distributor Megachem has reported earnings of $4.5 million for 1HFY2022, up 18% y-o-y. Revenue, meanwhile, was up 14.1% to $75.2 million.
The company plans to pay an interim dividend of 0.8 cent per share.
“Despite all the uncertainties in the first half of 2022, we delivered record high half year revenue and continued to expand in our growth markets,” says managing director Sidney Chew.
“The chemical industry delivered positive growth in the first half of this year as it benefited from inventory rebuilding and an increase in demand across many end-use industries, notwithstanding the ongoing supply chain constraints,” he adds.
The company says the chemicals industry is closely tied to the global economy whose outlook is uncertain.
Many of the raw materials used are subject to both price volatility and the lingering supply chain bottleneck. Megachem will not be immune to any changes in macroeconomic conditions, the company warns.
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“With our extensive geographic footprint and comprehensive product range, Megachem will build upon the strong relationship that we have with both customers as well as suppliers across wide spectrum of industries and position the group for future growth,” says Chew.
“We will also continue to focus on identifying potential growth markets and dedicate more resources to be able to take on opportunities whenever they arise,” he adds.
Megachem shares closed on Aug 11 at 50 cents, up 1.01%.
