Multi-Chem Limited reported a net profit of S$15.0 million for the six months ended Jun 30, 2026, up 6 per cent year-on-year, driven by higher demand and several large transactions in its core information-technology distribution business.
Earnings per share increased to 16.67 Singapore cents from 15.78 cents a year earlier. The board declared an interim, tax-exempt (one-tier) dividend of 16.60 cents per share, versus 11.10 cents a year ago. The payout will be made on 25 September 2026 to shareholders on record as at 5 p.m. on 14 September, with the books closing on 15 September.
Group revenue expanded 15.1 per cent to S$346.4 million, entirely generated by the IT distribution arm, which operates in 24 cities across 13 Asia-Pacific markets. Higher customer demand and the completion of several sizable deals underpinned the top-line growth. Gross profit rose 10 per cent to S$49.0 million as inventory-related write-downs shrank, while cost of sales fell 16 per cent. Pre-tax earnings rose 14 per cent to S$19.4 million.
Cost pressures moderated gross-margin gains. Selling and distribution expenses grew 9 per cent to S$18.3 million, reflecting larger commissions and profit-sharing linked to the revenue increase. Marketing and entertainment costs also picked up, and other income fell 39 per cent following lower government subsidies in China. Income-tax expense jumped 54 per cent to S$4.4 million, trimming the bottom-line improvement.
The balance sheet remained debt-free, ending the half year with S$89.3 million in cash and cash equivalents, down from S$99.5 million at end-2025 after paying S$18.0 million in dividends. Trade receivables and inventories rose in tandem with sales, pushing total assets to S$412.8 million, while contract liabilities increased to S$39.9 million on higher advance billings.
Looking ahead, management noted that inflationary pressures, interest-rate volatility and geopolitical tensions could weigh on regional IT spending. Even so, it expects cybersecurity and network solutions to stay essential for businesses, supporting demand for the group’s “best-of-breed” product portfolio. Multi-Chem will continue to deepen its regional presence, pursue selective vendor partnerships and expand certified IT training services to drive growth over the next 12 months.