Megachem Limited
Annual Report
2014
33
FY 2014 vs FY 2013
With record half-yearly sales achieved in H2 2014, this pushed our sales for the full year of 2014 (“FY 2014”) to S$115.9 million,
a commendable increase of S$7.2 million as compared to full year of 2013 (“FY 2013”).
Business Activity Segment Sales Breakdown
Variance Fav/ (Unfav)
Variance Fav/(Unfav)
H2 2014
H1 2014 H2 2013
H2 2014 vs H1 2014
H2 2014 vs H2 2013
S$’000
S$’000
S$’000
S$’000
% S$’000
%
Distribution activity
58,533
54,038
55,009
4,495
8.3
3,524
6.4
Manufacturing activity
1,761
1,592
1,814
169
10.5
(53)
(3.0)
Total Sales
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
%
Distribution activity
112,571
105,231
7,340
7.0
Manufacturing Activity
3,353
3,453
(100)
(2.9)
Total Sales
115,924
108,684
7,240
6.7
H2 2014 vs H1 2014
H2 2014 vs H2 2013
Distribution segment remained as the main contributor to total sales. As noted from geographic segment sales analysis,
distribution segment performed reasonably well in H2 2014 primarily from the improvement in the global economy.
Revenue from contract manufacturing increased by S$169,000 or 10.5% as compared to H1 2014 as manufacturing activities
were normally higher in the second half of the year. Revenue was relatively flat as compared to H2 2013.
FY 2014 vs FY 2013
Sales from distribution segment increased by S$7.3 million or 7.0% while revenue from manufacturing segment contracted
marginally by S$0.1 million or 2.9%.
1.2 GROSS PROFIT
H2 2014 vs H1 2014
H2 2014 vs H2 2013
Gross profit margin for H2 2014 increased to 20.7% as compared to 19.7% in H1 2014 and 19.6% in H2 2013 mainly due to
better gross profit from ASEAN market.
Gross profit contribution for H2 2014 increased by S$1.5 million or 13.7% as compared to H1 2014 and S$1.3 million or 12.1%
vis-à-vis H2 2013.
FY 2014 vs FY 2013
Despite the higher inventory write off due to higher inventory holding, the increase in gross profit margin of 0.3%-point to
20.2% was attributable mainly to higher gross profit margin earned from indent sales to America. This led to a year-on-year
increase in gross profit of S$1.9 million or 8.7% as compared to the year before.
