Integrated chemicals and lubricants distributor Samchem Holdings Bhd (Samchem) has announced its second quarter results for the three months ended 30 June 2021 (2Q2021), delivering its fifth consecutive quarter of record profitability.
For the second quarter ended June 30, 2021, Samchem registered revenue of RM371.56 million which was 85% above revenue of RM201.09 million achieved in the corresponding period of the preceding year (2Q2020).
The increase in revenue was due to higher sales volume from its Malaysia, Vietnam, and Singapore markets as well as higher average selling prices of chemicals.
Profit after tax and minority interest during the quarter increased by 120% to RM19.24 million as compared to 2Q2020. The surge in profitability was mainly attributable to margin improvement in the Group’s Malaysia, Vietnam, and Singapore markets as well as lower finance costs. Pre-tax margin for 2Q2021 was 8.6% as compared to 6.2% in 2Q2020.
CEO of Samchem, Ng Thin Poh commented: “We are delighted to announce yet another quarter of record performance. Our comprehensive chemicals portfolio together with the execution of efficiency improvement strategies have enabled us to deliver sustainable results. Samchem’s business continues to demonstrate resilience in both the top and bottom lines amid lockdowns and other pandemic related challenges. Our strategy to have presence in multiple markets being Malaysia, Vietnam and Indonesia has worked favourably as we are less susceptible to the economic cycles and conditions of a particular country.
“Once the lockdown eases, we will be commencing the construction of our warehouse in Pulau Indah which is expected to take approximately a year to complete. This will double our storage capacity in Klang Valley and is expected to commence operations next year. We will be consolidating our central region blending and storage facilities into this new warehouse, which is in close proximity to the port, further increasing efficiency and extracting cost savings,” he adds.