H2 2025 vs H1 2025 H2 2025 vs H2 2024 Sales from distribution segments contracted by S$3.5 million or 5.6% and S$2.8 million or 4.5% over H1 2025 and H2 2024 respectively. Sales from the contract manufacturing segment decreased by S$0.2 million or 12.4% and S$0.6 million or 26.9% in H2 2025 over H1 2025 and H2 2024 respectively. FY 2025 vs FY 2024 Year-on-year, sales from distribution and manufacturing segments decreased by S$3.8 million or 3.0% and S$0.6 million or 16.5% respectively. (b) Gross profit H2 2025 vs H1 2025 H2 2025 vs H2 2024 Gross profit margin improved in H2 2025 (26.1%) as compared to H1 2025 (25.1%) and H2 2024 (24.7%). This was mainly due to lower allowance for inventory impairment in H2 2025 over H1 2025 and H2 2024. Due to lower sales achieved in H2 2025, gross profit decreased by S$0.4 million or 2.1% over H1 2025 but was relatively flat as compared to H2 2024. FY 2025 vs FY 2024 Gross profit margin for FY 2025 improved to 25.6% as compared to 24.2% in FY 2024 mainly due to lower allowance for inventory impairment. As a result, gross profit increased year-on-year by S$0.6 million or 1.8% to S$31.8 million despite a decline in sales in FY 2025. (c) Other income Variance Fav/(Unfav) Variance Fav/(Unfav) H2 2025 H1 2025 H2 2025 vs H1 2025 H2 2024 H2 2025 vs H2 2024 S$’000 S$’000 S$’000 % S$’000 S$’000 % Change in fair value of financial assets at FVTPL – forward foreign exchange contracts – 6 (6) (92.1) 45 (45) (98.9) Gain on disposal of property, plant and equipment 28 9 19 >100.0 598 (570) (95.4) Grant income 21 88 (67) (75.8) 40 (19) (47.3) Insurance claims 2 20 (18) (90.9) 4,432 (4,430) (100.0) Interest income 89 89 – – 77 12 15.7 Trade receivables recovered 119 49 70 >100.0 80 39 48.4 MEGACHEM LIMITED ANNUAL REPORT 2025 33 OPERATING AND FINANCIAL REVIEW
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