PETALING JAYA: Third quarter profits for Samchem Holdings Bhd’s 2022 financial year fell by 48% despite a 16% increase in revenue compared with the previous corresponding period.
In a statement issued to the media today to announce its quarterly results, the integrated chemicals and lubricants distributor said its revenue rose to RM317.32 million in the three months leading up to Sept 30 (Q3 2022) from RM272.81 million in the corresponding period in 2021.
It attributed the better performance to higher volume and higher average selling prices.
However, profit after tax and minority interest declined by 48% to RM6.5 million during the quarter compared with the previous corresponding period.
For the first nine months of the year, the group’s revenue rose by 8% year-on-year to RM1.05 billion while profit after tax and minority interest was RM44.29 million.
Samchem CEO Ng Thin Poh said unfavourable macro economic conditions such as increases in interest rates, inflation, higher input costs, disruptions in logistics and China’s zero-Covid policy combined to pose significant challenges in Q3 2022.
“(However) we view the setback in chemical demand as temporary as the market adjusts to the new economic benchmark while prices are rationalised and inventory levels become normal,” he said.
Ng announced that an interim dividend of 0.6 sen per share had been declared, representing a payout ratio of 50%.
He said Samchem is scheduled to complete its expansion in its Malaysia and Vietnam warehousing capacity by 38% and 58% respectively by the end of the year.
“This will enable us to move into 2023 with the readiness to expand into new segments and enhance our product portfolio,” he added.