Megachem Limited
Annual Report
2014
32
Operating and Financial Review
1.
PROFITABILITY ANALYSIS
1.1 SALES
Variance Fav/ (Unfav)
Variance Fav/(Unfav)
H2 2014
H1 2014 H2 2013
H2 2014 vs H1 2014
H2 2014 vs H2 2013
S$’000
S$’000
S$’000
S$’000
% S$’000
%
ASEAN
37,725
39,225
36,907
(1,500)
(3.8)
818
2.2
North Asia
6,818
4,977
4,639
1,841
37.0
2,179
47.0
America
6,328
3,569
8,196
2,759
77.3
(1,868)
(22.8)
Europe
3,906
2,680
2,838
1,226
45.7
1,068
37.6
South Asia
2,443
1,975
2,249
468
23.7
194
8.6
Middle East
1,720
1,722
1,067
(2)
(0.1)
653
61.2
Australia
1,354
1,479
927
(125)
(8.5)
427
46.1
Africa
-
3
-
(3)
(100.0)
-
0.0
Total
60,294
55,630
56,823
4,664
8.4
3,471
6.1
FY 2014
FY 2013
Variance Fav/(Unfav)
S$'000
%
S$’000
%
S$’000
%
ASEAN
76,950
66.4
73,754
67.9
3,196
4.3
North Asia
11,794
10.2
9,001
8.3
2,793
31.0
America
9,898
8.5
11,435
10.5
(1,537)
(13.4)
Europe
6,586
5.7
5,590
5.1
996
17.8
South Asia
4,418
3.8
4,231
3.9
187
4.4
Middle East
3,442
3
2,494
2.3
948
38.0
Australia
2,833
2.4
2,086
1.9
747
35.8
Africa
3
0
93
0.1
(90)
(96.8)
Total
115,924
100
108,684
100
7,240
6.7
Geographic Segment Sales Analysis
H2 2014 vs H1 2014
The return of strong demand from the America markets, the recovery of the European economy albeit at a slower pace and
the continued growth from China economy were the main drivers behind the growth in sales for the second half of 2014 (“H2
2014”). Sales to America surged by S$2.8 million or 77.3% while sales to Europe and China grew by S$1.2 million or 45.7% and
S$2.0 million or 57.9% respectively as compared to first half of 2014 (“H1 2014”).
Although ASEAN and Australia markets contracted marginally after some healthy growth recorded in H1 2014, sales for H2
2014 ended with a record high of S$60.3 million, a S$4.7 million or 8.4% increase vis-à-vis H1 2014.
H2 2014 vs H2 2013
Compared to the second half of 2013 (“H2 2013”), most of the markets registered growth of various magnitude, with the
exception of America which recorded historical high sales in H2 2013. This led to an overall increase in sales by S$3.5 million
or 6.1%.
