KUALA LUMPUR (Feb 23): Samchem Holdings Bhd returned to profitability in the fourth quarter with a net profit of RM10.35 million versus a net loss of RM2.13 million a year ago, helped by improved profit margin as well as recognised other income.

Revenue for the quarter ended Dec 31, 2023 rose 12.81% to RM308.31 million from RM273.31 million previously on higher sales volume, according to the chemical distributor’s bourse filing.

Samchem declared a fourth interim dividend of 0.8 sen per share, bringing the full-year payout to RM13.1 million.

For the full year, Samchem posted a 27% decline in net profit to RM30.78 million from RM42.16 million in FY2022, as revenue declined 12.06% to RM1.16 billion from RM1.32 billion.

Going forward, Samchem said the group remains cautiously optimistic of a more favourable operating environment in FY2024, particularly in the second half of the year, while keeping mindful of the potential challenge of rising inflation.

“This outlook is bolstered by anticipated improvements in the economic landscape and heightened demand driven by increased construction and infrastructure activities within our key markets,” the group said.

Shares in Samchem ended half a sen or 0.77% higher at 65.5 sen on Friday, valuing the group at RM356.32 million.