Multi-Chem AWZ has announced earnings of $27.1 million for the FY2023 ended Dec 31, 2023, a 36% increase over its earnings of $20.0 million in FY2022.
Earnings per share also increased to 30.1 cents for FY2023, compared to 22.2 cents in the previous financial year.
For the full-year period, revenue was up 7% y-o-y in FY2023 to $658.4 million, with cost of sales also increasing 6% y-o-y to $568.5 million.
As a result, gross profit posted a 10% y-o-y improvement to $90.0 million in FY2023.
Despite its name, Multi-Chem's core business now is the distribution of IT hardware and software, as well as in electronics manufacturing.
The company attributes the higher margins to lower allowances made for obsolete inventory and staffing costs in 2HFY2023. There was also a decrease in net foreign exchange losses compared to 2HFY2022, when the company recorded $2.6 million in forex losses.
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Multi-Chem has declared a final dividend of 15.5 cents for FY2023. Including the interim dividend of 8.8 cents paid last year, total dividends for the whole of FY2023 come to 24.3 cents. The company paid a total of 17.7 cents in FY2022 and 11.1 cents in FY2021.
As at Dec 31, 2023, cash and cash equivalents stood at $73.0 million.
Despite the IT business being dependent on geopolitical and macroeconomic events, Multi-Chem notes that IT is still a critical requirement in businesses and security will continue to remain an integral part of the IT infrastructure.
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To create growth, the company says it will focus on "best-of-breed" products and will continue to look out for opportunities for regional expansion.
Multi-Chem shares closed 2 cents higher or 0.97% up at $2.08.
