Multi-Chem, whose main business is in the distribution of IT products, has announced earnings of $9.7 million for the 1HFY2022 ended June, 17% lower than the earnings of $11.6 million in the same period the year before.
Revenue for the six-month period increased by 1.1% y-o-y to $301.9 million on the back of slightly higher revenue from the company’s IT division and printed circuit board (PCB) division.
Gross profit fell by 2% y-o-y to $41.8 million mainly due to the higher allowance for inventory obsolescence of $877,000 from $1.2 million in the 1HFY2021 to $2.0m in the 1HFY2022 based on the review of inventory obsolescence performed as at June 30.
This resulted in a 0.4 percentage point decrease in gross profit margin to 13.9% in the 1HFY2022. Excluding the allowance for inventory obsolescence, Multi-Chem’s gross profit margin would have been at 14.5% for the 1HFY2022, down 0.2 percentage points y-o-y.
The company’s earnings per share (EPS) for the 1HFY2022 stood at 10.71 cents on a fully diluted basis.
Its net asset value (NAV) per share stood at 150.75 cents in the same period.
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Multi-Chem has declared an interim dividend of 6.60 cents per share, which will be paid on Sept 9. The period’s interim dividend is 2.4 cents higher than the interim dividend of 4.20 cents in the 1HFY2021.
Cash and cash equivalents stood at $71.9 million as at June 30.
Shares in Multi-Chem closed 1 cent lower or 0.52% down at $1.92 on Aug 5.
