Megachem Limited Annual Report 2015 36 Operating and Financial Review 1.7 Profit before income tax H2 2015 vs H1 2015 As compared to H1 2015, the increase in net profit before tax for H2 2015 of S$0.4 million or 17.4% were mainly due to net impact of the reversal of net foreign exchange loss and valuation gain from plant and equipment from associated company. H2 2015 vs H2 2014 Despite higher gross profit earned, net profit was lower by S$0.3 million or 11.3% due to higher operating expenses of S$0.4 million incurred in H2 2015. FY 2015 vs FY 2014 Although we achieved higher gross profit of S$25.4 million, which represent an increase of S$1.9 million, this was eroded by higher operating expenses and finance cost of S$1.4 million, unfavourable foreign exchange impact of S$0.3 million and lower share of profit of associated companies of S$0.1 million. As a result, net profit before tax increased marginally by S$0.1 million or 3.0% to S$4.4 million as compared to last year. As for EBITDA, it increased by S$0.2 million or 2.6% to S$6.4 million in FY 2015. 1.8 Net profit after tax Consistent with the above, net profit after tax increased by S$0.3 million or 20.1% vis-à-vis H1 2015 but fell by S$0.3 million or 12.6% as compared to for H2 2014. Year-on-year, it was up marginally by S$0.1 million or 2.9% to S$3.3 million. 1.9 Total comprehensive income H2 2015 vs H1 2015 H2 2015 vs H2 2014 Total comprehensive income fell by S$50,000 or 4.8% and S$1.2 million or 55.6% as compared to H1 2015 and H2 2014 respectively. This was due to net exchange losses on translation of foreign operations of S$0.8 million in H2 2015 as opposed to a smaller loss of S$0.5 million in H1 2015 and net exchange gain on translation of S$0.2 million in H2 2014. The net exchange losses on translation of foreign operations of S$0.8 million in H2 2015 and S$0.5 million in H1 2015 arose primarily from the significant weakening in Malaysian Ringgit while the net exchange gains on translation in H2 2014 resulted from a mix of a stronger Thai Baht and United States Dollar. FY 2015 vs FY 2014 Year-on-year, total comprehensive income fell by S$1.3 million or 40.0% mainly from the significant weakening in Malaysian Ringgit.
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