KUALA LUMPUR (July 28): Samchem Holdings Bhd’s net profit for the second quarter ended June 30, 2022 (2QFY22) decreased by 5.4% to RM18.21 million, down from RM19.24 million a year ago, due to narrower margin as a result of challenging business environment.

Its earnings per share fell to 3.35 sen in 2QFY22 versus 3.54 sen a year earlier.

Samchem’s quarterly revenue fell marginally by 1.3% to RM366.67 million, as compared to RM371.56 million a year before, dragged by lower sales volume, according to the integrated chemicals and lubricants distributor’s filing on Thursday (July 28).

Nevertheless, the group has proposed a second interim dividend of one sen per share.

For the first half of 2022 (1HFY22), Samchem’s net profit was marginally down 1% to RM37.8 million, as compared to RM38.19 million in the same period last year, mainly attributed to a lower profit margin.

Meanwhile, the group’s revenue for 1HFY22 climbed 4.1% to RM731.18 million from RM702.26 million a year prior, on the back of higher average selling prices.

Samchem CEO Ng Thin Poh said the group’s financial results for 2QFY22 were satisfactory, in view of the uncertain and unfavourable macro conditions, continuously elevated logistics and higher input costs.

“Our team has responded well to ensure that customers were served with agility, with [a] continuing focus on long-term excellence,” he said in a statement.

Looking forward, Ng said Samchem remains committed to growing its capacity in line with the “imminent” completion of its Pulau Indah warehouse, as well as its Vietnam expansion, which will commence operations early next year.

“This will fortify our position moving into 2023, as we look to expand into new segments with new additions to our product portfolio.

“We believe our reliability as [an] integrated supply chain distributor, along with our robust supplier relationships and strong commercial execution will continue to deliver growth in the coming years,” he added.

Year to date, shares of Samchem had declined by 14% to close at 77 sen on Thursday (July 28), giving it a market capitalisation of RM416.16 million.