Southeast Asia’s leading fully integrated chemicals group, Ancom Nylex Bhd announced its fourth quarter (“4QFY22”) and full-year financial results for the period ended 31 May 2022 (“FY22”) today.
The Group’s revenue climbed 30.9% year-on-year (“YoY”) from RM1.54 billion in FY21 to RM2.01 billion in FY22. Synchronously, profit after tax and non-controlling interests (“net profit”) jumped nearly threefold from RM23.8 million to RM68.2 million over the same period.
Core growth was mainly attributed to its Agricultural Chemicals (“Agrichem”) division which reported revenue of RM462.8 million in FY22, surging by 39.4% YoY. In tandem with that, segmental earnings before interest and tax (“EBIT”) improved by 50.1% YoY to RM70.7 million.
Meanwhile, revenue from its Industrial Chemicals division grew by 33.5% YoY to RM1.39 billion in FY22. Segmental EBIT recorded a twofold increase from RM29.6 million in FY21 to RM62.5 million in FY22. This was inclusive of a one-off gain on the disposal of terminal assets amounting to RM24.5 million.
In 4QFY22, Ancom Nylex’s top line increased by 26.8% YoY to RM565.4 million whilst quarterly net profit jumped 330.3% YoY to RM31.9 million.
Managing Director and Group CEO of Ancom Nylex Berhad, Mr. Lee Cheun Wei said, “We are extremely delighted with the breakthrough results reported in FY22. As the world continues to focus on food security, growers of major crops are placing higher importance on proper crop management. Higher selling prices for our proprietary products due to strong demand, as well as contributions from two new active ingredient products, boosted our Agrichem business. Whereas the elevated crude oil prices lifted our Industrial Chemical segment, which is mainly involved in the trading of petrochemical products.”
“We are currently expanding the production capacity for our existing Agrichem active ingredients portfolio to cope with the surging demand from both overseas and local markets. Meanwhile, the new facility meant for three more new active ingredient products is completed and is expected to go through manufacturing audits by the end of the year. In FY23, we will also start reaping the full benefits of our successful restructuring exercises, namely, the recent acquisition of the livestock chemicals business and the merger of the Industrial Chemicals business earlier this year.”
“All that said, we are cognizant of a potential global recession amid the restrictive monetary policies being implemented to cope with the rising inflation. While the Group is not completely immune to external factors, we remain focused on our growth journey which is well supported by the non-discretionary nature of our Agrichem segment. Demand is rather inelastic and resilient due to our dominant position in this niche Agrichem market,” Mr. Lee added.