The fully integrated chemical group has announced its first quarter financial results for the period ended 31 August 2022 (1QFY23).
Revenue rose from RM404.7 million in 1QFY22 to RM549.8 million in 1QFY23, which translated to a one-third increase on a year-on-year (YoY) basis.
Synchronous to that, net profit attributable to the owners of the parent (net profit) more than doubled from RM9.0 million to RM20.0 million. This was Ancom Nylex’s highest core quarterly net profit since its founding.
Its largest segment, Industrial Chemicals, jumped 32.7% YoY from RM259.1 million in 1QFY22 to RM343.7 million this quarter – remains as the top-line contributor.
Over the same period, segmental earnings before interest and tax (EBIT) rose by two-thirds from RM3.6 million to RM6.0 million.
Meanwhile, the Agricultural Chemicals (Agrichem) segment recorded revenue of RM162.3 million for 1QFY23, which was a 40.6% YoY increment from last year. In tandem with that, segmental EBIT climbed by 43.2% YoY to RM23.2 million for the quarter under review.
“Our core Agrichem business continues to grow stronger while our group-wide consolidation efforts are beginning to reap rewards as seen in the markedly improved bottom-line this quarter. We attribute this, in part, to the acquisition of the industrial chemicals operation which we now have full control over, and the disposal of various non-core businesses conducted in the past year or so,” Managing Director and Group CEO of Ancom Nylex, Mr. Lee Cheun Wei remarked.
“The introduction of two new herbicide active ingredients, market share gained from our existing MSMA1-based herbicides, as well as the newly acquired livestock chemicals business, have elevated our Agrichem segment’s profitability to a new level. We continue to foresee strong growth driven by the heightened emphasis to improve food security on a global scale,” Mr Lee elaborated.
“Going forward, we are not resting on our laurels just yet regarding our expansion and consolidation plan. Just two weeks back, we increased our stake in the chemical tank farm operation which is a crucial support to the industrial chemical distribution business. Another near-term development we can expect is the capacity expansion of our existing Agrichem plant in Shah Alam by the end of This will help boost the output our MSMA-based herbicides to meet surging demand following the ban of a close substitute, paraquat, in Thailand,” Mr. Lee concluded.
