KUALA LUMPUR (Feb 23): Integrated chemicals and lubricants distributor Samchem Holdings Bhd's net profit rose to RM40.61 million for the financial year ended Dec 31, 2020 (FY20) from RM23.76 million in the preceding year due to the higher gross profit margin and lower finance costs.

Revenue, however, eased to RM1.052 billion from RM1.057 billion previously.

The decrease in revenue was due to dampened demand regionally in the current financial year, it said in a filing with Bursa Malaysia today.

On prospects, the company said market conditions are expected to be volatile in the forthcoming year due to concerns over uncertainties in global economic recovery from the impact of Covid-19 pandemic.

“Our performance is driven by the demand and supply balance of chemicals in our product portfolio, regional consumption and Gross Domestic Product (GDP) growth and can be affected by exchange rate fluctuations, Covid-19 pandemic challenges, competition as well as disruptions to demand and supply.

“The company will continue to focus on operational efficiencies and expansion of new products and service offerings to improve the group’s performance,” it said.