FY 2025 FY 2024 Variance Fav/(Unfav) S$’000 S$’000 S$’000 % Bills payables 847 1,030 183 17.8 Bank loans 389 657 268 40.7 Bank overdraft 14 56 42 74.9 Finance leases 29 28 (1) (3.5) Lease liabilities 133 139 6 4.1 Total finance costs 1,412 1,910 498 26.1 H2 2025 vs H1 2025 H2 2025 vs H2 2024 Finance costs for H2 2025 decreased by S$66,000 or 8.8% over H1 2025 mainly due to lower interest rates. As compared to H2 2024, the decrease in finance costs of S$238,000 or 26.0% was mainly due to lower trade borrowings. FY 2025 vs FY 2024 The decrease in finance costs year-on-year of S$498,000 or 26.1% was mainly due to lower interest rates and trade borrowings. (f) Share of profit of associates H2 2025 vs H1 2025 H2 2025 vs H2 2024 Our share of profit of associates for H2 2025 decreased by S$0.3 million or 42.1% as compared to H1 2025. Vis-à-vis H2 2024, our share of profit of associates for H2 2025 decreased by S$67,000 or 13.4%. FY 2025 vs FY 2024 Our share of profit of associates for FY 2025 decreased by S$55,000 or 4.5% as compared to FY 2024. (g) Profit before income tax and net profit after tax H2 2025 vs H1 2025 Profit before tax for H2 2025 increased by S$0.1 million or 6.8% to S$2.2 million as compared to profit before tax of S$2.1 million in H1 2025. Similarly, EBITDA in H2 2025 was relatively unchanged at S$3.4 million. The increase in profitability was primarily due to lower expenses offset by lower gross profit and lower share of profits of associates. Due to lower income tax expenses in H2 2025, net profit after tax was S$2.2 million in H2 2025 as compared to S$1.7 million in H1 2025. H2 2025 vs H2 2024 As compared to H2 2024, H2 2025 profit before tax and EBITDA decreased by S$3.6 million or 61.8% and S$3.9 million or 52.5% respectively. This was mainly due to lower other income (primarily lower insurance compensation claims and lower gain on disposal of property, plant and equipment) offset by lower expenses (primarily the absence of expenses incurred as a result of the fire). After adjusting for the impact of the fire incident, H2 2025 net profit after tax would have increased by S$0.9 million or 67.1% over H2 2024. MEGACHEM LIMITED ANNUAL REPORT 2025 37 OPERATING AND FINANCIAL REVIEW
RkJQdWJsaXNoZXIy NTM2MDQ5