Chemicals supplier Megachem's revenue for the year ended Dec 31 2025 was down 3.4% on softer demand, and earnings for the same year was down 50.6% over the preceding year to $3.9 million.
However, if adjusted to take into account the impact of a fire at its warehouse in July 2023, the company's net profit after tax for FY2025 would have been an increase of 31.1% over FY2024.
Despite the lower bottom line, Megachem is holding its FY2025 dividend steady at one cent per share - same as FY2024's payout.
The company is spending $18 million to rebuild its warehouse which it says will be fully operational by the end of March.
Managing director Sidney Chew calls FY2025 a "challenging" year for the chemicals industry amid ongoing global economic and geopolitical uncertainties.
"The current oversupply and trade complexities have impacted customer demand and led to softening prices. Despite this, our business has remained resilient, which is a testament to our proven business model, extensive global networks and large customer base," he says.
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Chew expects the global operating environment to remain challenging amid heightened geopolitical risks, ongoing trade tensions, and concerns over inflationary pressures as well as fears of an AI bubble.
"Macroeconomic and geopolitical uncertainties will continue to weigh on business sentiment in the year ahead," says Chew.
Megachem shares last traded at 42 cents.
