Multi‑Chem FY2025 profit down 14% to S$26.4m as revenue slips 4% and inventory clean‑up weighs on margins
Summary:
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Group revenue fell 4.4% to S$653.9 million in FY2025, as lower IT distribution volumes and a weaker US dollar more than offset a stronger 2H sales recovery; PCB revenue shrank 75% to S$0.4 million after Singapore factory closure.
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Gross profit declined 8% to S$89.6 million and group profit before tax dropped 15% to S$33.0 million, driven by higher inventory obsolescence allowances of S$6.5 million and S$1.9 million of inventory write‑offs, plus a doubling of finance costs to S$3.6 million.
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Net profit attributable to shareholders fell 14% to S$26.4 million, with EPS easing from 34.21 cents to 29.35 cents; foreign‑currency translation losses of S$5.6 million pulled total comprehensive income down 39% to S$20.8 million.
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The balance sheet remains very strong, with net assets of S$152.2 million (NAV 168.98 cents per share), no borrowings and cash and fixed deposits of S$99.5 million against total liabilities of S$238.1 million.
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Operating cash flow rose to S$45.8 million from S$36.6 million, supporting FY2025 dividends of S$22.8 million, even as management tightens credit controls, reviews inventory turns and continues to wind down the legacy PCB segment to focus on the core IT distribution business.