Megachem Limited has announced a 1.7% decrease in revenue for the first half of 2025, totalling S$64.1 million. The decline is attributed to reduced demand for chemicals amid ongoing macroeconomic and geopolitical challenges. Despite the revenue drop, the company’s net profit after tax remained stable at S$1.7 million, excluding the impact of a fire incident in July 2023.
The company, a global provider of speciality chemical solutions, maintains a healthy financial position with a net gearing ratio of 0.25 times. An interim dividend of 0.5 pence per share has been declared for H1 2025. Managing Director Sidney Chew highlighted the resilience of the business amidst global challenges, stating, “Prudent and optimal inventory management will continue to be a key focus area for us.”
Megachem’s new warehouse construction is progressing well, with structural work largely completed. The warehouse is expected to be finished by the end of 2025, which is anticipated to enhance the company’s competitiveness in the long term. The company faces minimal direct impact from US tariffs due to insignificant sales to the US market, but indirect effects are felt through customers’ inventory management difficulties.
Looking ahead, Megachem is bracing for continued uncertainties in the global economy, including US trade policies, geopolitical conflicts, and sluggish economic recovery in China. These factors pose heightened downside risks to the global economy, impacting business conditions in the chemical industry.
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