Multi-Chem (AWZ) H1 2023 earnings summary

Executive summary

• H1 revenue rose 3.7% YoY to $313.1m; PBT increased 19% to $15.5m and profit after tax rose 18% to $11.4m.

• Higher IT distribution revenue, interest income, government subsidies, a receivables allowance reversal and a foreign-exchange gain supported earnings; higher staff costs and finance costs partly offset gains.

Financial highlights

• Revenue was $313.147m versus $301.861m; gross profit was $43.061m versus $41.827m, up 3%.

• PBT was $15.543m versus $13.032m; income tax expense increased to $4.131m from $3.381m; net profit was $11.412m versus $9.651m.

• Net foreign-exchange gain was $308,000 versus a $1.337m loss; other gains were $812,000, including China government financial subsidies.

• Operating cash flow rose to $16.546m from $3.267m; cash and cash equivalents were $75.6m at June 30, 2023.

Outlook and guidance

• IT revenue growth is expected to benefit from continued business demand for IT and security; near-term performance remains exposed to political and economic events.

• Growth priorities include best-of-breed IT products, selective product choices, regional expansion, and closer work with key partners to promote products.

• The prior prospect commentary was reported as broadly in line with actual H1 results.