Samchem’s profit surges by 338 per cent to RM18.95 million in 1Q21
KUCHING: Integrated chemicals and lubricants distributor Samchem Holdings Bhd (Samchem) has announced its first quarter results for the three months ended March 31, 2021 (1Q21), delivering another quarter of record revenue and profitability.
For 1Q21, Samchem registered revenue of RM330.70 million which was 28 per cent above revenue of RM258.43 million achieved in the corresponding period of the preceding year (1Q20).
Profit after tax and minority interest (PATAMI) however, increased by 338 per cent to RM18.95 million as compared to 1Q20. The surge in profitability was mainly due to improved profit margins, operational efficiency, enhanced inventory management and lower finance costs.
“The first quarter of the year is typically less vibrant due to various festive holidays,” Samchem chief executive officer Ng Thin Poh commented.
“However, we delivered sterling results in 1Q21 owing to healthy average selling prices (ASPs) and higher margin product mix.
“We have witnessed improving ASPs since 3Q20 and we are optimistic that prices will remain favourable, supported by economic recovery prospects and global vaccination roll-outs.
“The ongoing global shipping container shortages exacerbated the tightness of chemicals supply in the region. We were able to increase our market share in the countries that we operate and secure inventories owing to our close rapport and relationship with key principals.
“We have implemented various business strategies which are expected to contribute positively in 2021 and beyond, as we scale up the value chain by providing additional value-added services to our clients. The next few years will be exciting for Samchem as we work to expand and further strengthen our position as an integrated supply chain distributor. As we grow, we remain cognisant of rewarding shareholders for their loyal support.”
“The board of directors has declared a first interim dividend of one sen per share and we have also recently announced a bonus issue exercise as a further way of rewarding our shareholders.”