Ancom Nylex Berhad announced its third quarter and nine months financial results where the group registered revenue of RM1.57 billion for 9MFY23 as compared to RM1.45 billion in the previous year’s corresponding period.
This translates to an improvement of 8.1% year-on-year (“YoY”). In tandem with the top-line growth, the Group’s nine-month profit after tax and non-controlling interest propelled to an all-time high. 9MFY23 net profit jumped 57.1% YoY to RM56.9 million versus RM36.3 million a year ago.
In terms of its segmental performance, the Group’s Agricultural Chemicals delivered revenue of RM440 million for 9MFY23 from RM347.4 million in the previous year, a YoY growth of 26.7%. This improvement was also reflected in the earnings before interest and tax level. The division posted an EBIT of RM64.3 million for the current period under review, an increase of 24.4% YoY from RM51.7 million recorded for 9MFY22. With this, Agrichem continued to be Ancom Nylex’s chief profit driver.
For the current quarter under review, the Group delivered a net profit of RM16.4 million on the back of RM483.9 million revenue. This represented a bottom-line growth of 8.0% YoY from RM15.1 million achieved in 3QFY22.
Separately, Ancom Nylex announced last week that the Group’s wholly-owned subsidiary, Ancom Crop Care Sdn. Bhd. has entered into a Share Sale Agreement with H.J. Unkel (M) Sdn. Bhd., Chong Sau Kin and Ye Supingf for a purchase consideration of RM9.0 million to be satisfied in cash.
The Proposed Acquisition comes with a profit guarantee of RM2.5 million in net profit for HJU Chemicals’ financial years ending 31 May 2024 and 31 May 2025 respectively. This is a synergistic move as HJU Chemicals could be supplying surfactant chemicals to its Agrichem division for the production of AI. Therefore, by insourcing the procurement, Ancom Nylex could potentially enhance its profitability, especially considering the rising need by the Agrichem division on the back of uptrend demand for its existing and new AI products.
