For its third quarter results for the three months ended 30 September 2022 (3Q2022), the integrated chemicals and lubricants distributor posted a 16% increase in revenue to RM317.32 million compared to RM272.81 million achieved in the preceding year’s corresponding period (3Q2021).
The growth in revenue is due to higher volume and higher average selling prices. Profit after tax and minority interest (PATAMI) decreased by 48% to RM6.50 million, stemming from higher costs and loitering business activities faced by customers due to uncertainty.
Meanwhile for the first nine months of the year, the Group’s revenue increased by 8% YoY to RM1.05 billion and PATAMI was RM44.29 million.
“Unfavourable macro conditions such as interest hikes, inflationary pressure, higher input costs, logistic disruption and zero-Covid policy from China posed significant challenges in 3Q2022,” Chief Executive Officer of Samchem, Mr. Ng Thin Poh remarked.
“We view the setback in chemical demand as temporary as the market adjusts to the new economic benchmark, rationalize product prices and normalizing inventory levels. Despite various challenges, we remained profitable and maintained strong financial resilience. This allowed us to continue rewarding our shareholders with dividends and we declared a third interim dividend of 0.6 sen per share, representing a payout ratio of 50%,” he added.
“We remain confident of our prospects and continue to invest in long-term growth as chemicals are indispensable to many industries. Moreover, Southeast Asia is becoming a more prominent manufacturing hub as an alternative to China,” he elaborated.
“Samchem is scheduled to complete its Pulau Indah and Vietnam expansion by the end of this year, increasing our total warehousing capacity by 38% and 58% in Malaysia and Vietnam, respectively. This will enable us to move into 2023 with the readiness to expand into new segments and enhance our product portfolio. Our expansion strategies, coupled with a long-term focus on operational excellence will drive future performance and market penetration” he concluded.
