Multi-Chem Limited reported net profit of 26.4 million Singapore dollars for the year ended 31 Dec 2025, down 14 per cent year-on-year, as lower sales and larger inventory-related provisions offset cost savings elsewhere.

Revenue slipped 4 per cent YoY to 653.9 million Singapore dollars. Diluted earnings per share came in at 29.35 cents against 34.21 cents a year earlier. The board declared an unchanged interim dividend of 11.10 cents a share and proposed a final one-tier tax-exempt dividend of 20.00 cents, lifting the full-year payout to 31.10 cents (FY2024: 25.30 cents). If approved at the May AGM, the final dividend will be paid on 22 May 2026, with the record date set for 12 May 2026.

By segment, the IT distribution and services arm generated 639.0 million Singapore dollars in product sales and 14.4 million dollars from maintenance, professional and training services, bringing IT revenue to 653.5 million dollars, 4.2 per cent lower YoY. The unit delivered 34.9 million dollars in pre-tax profit. The much smaller PCB segment recorded revenue of 0.4 million dollars (-75 per cent YoY) and a pre-tax loss of 1.9 million dollars following the closure of its Singapore plant.

Group gross profit fell 8 per cent to 89.6 million dollars as inventory-related charges rose sharply; allowances for obsolescence jumped to 6.5 million dollars from 1.3 million dollars in FY2024, while write-offs more than tripled to 1.9 million dollars. Finance costs more than doubled to 3.6 million dollars, reflecting higher imputed interest on extended supplier credit terms.

Operating cash flow strengthened to 45.8 million dollars (FY2024: 36.6 million dollars) on tighter working-capital management. After 22.8 million dollars of dividends and 0.8 million dollars of lease repayments, year-end cash and cash equivalents rose to 99.4 million dollars from 83.8 million dollars a year earlier.

Management attributed the top-line decline to a combination of slower demand and the depreciation of the US dollar, which reduced the Singapore-dollar value of US-denominated sales. It noted that inflationary pressures, higher interest rates and geopolitical uncertainties could weigh on IT spending in the near term. Even so, security and infrastructure remain critical for corporate customers, and the group plans to deepen regional coverage, focus on best-of-breed products and work with channel partners to support growth.

Multi-Chem ended the year with net assets of 152.2 million dollars, or 168.98 cents per share.