Ancom Nylex Bhd (Ancom Nylex) saw its net profit for the first six months financial results for the period ended 30 November 2023 (1HFY24) improved by 5.7% year-on-year (YoY) to RM42.9 million from RM40.6 million previously, marking the strongest first-half performance in the group’s history.
In a statement, Ancom Nylex, formerly known as Ancom Bhd, said the net profit is on the back of revenue of RM0.99 billion for 1HFY24, as compared to RM1.08 billion in the corresponding period last year.
“This growth is attributed to higher segmental profit recorded in the group’s Agrichem segment, with its earnings before interest and tax (EBIT) grew by 16.2% YoY to RM51.7 million on the back of stronger sales for products with higher profit margins,” it said today (Jan 17) in the announcement of its second quarter 2QFY24 and 1HFY24 results.
For the quarter under review, the Southeast Asia’s leading fully integrated chemical group said it recorded higher net profit of RM22.1 million for the quarter, which represented an increase of 7.6% year-on-year (YoY) from RM20.6 million a year ago.
“This improvement was driven by increased sales of high-margin products. The group registered a revenue of RM505.2 million in 2QFY24 vis-à-vis RM531.3 million in 2QFY23.
“(This is) primarily due to lower sales in the industrial chemical division as a result of lower selling prices and volume, and also lower sales of Agrichem products in the Southeast Asia market.”
Ancom Nylex managing director and group chief executive officer (CEO) Lee Cheun Wei said the group is pleased to have sustained our positive momentum, against the backdrop of volatile global economic conditions, with its Agrichem segment consistently serving as the group’s key growth driver.
“In addition, I am pleased to share we have commenced the trials for one of our new active ingredient (AI) products at our new Agrichem production facility in Port Klang.
“The production line for this new AI is now operational and poised to catalyse further growth within our Agrichem segment.
“This advancement further strengthens our position as the sole largescale manufacturer of herbicide AI in Southeast Asia, underscoring our commitment to innovation and market leadership,” he added.
Lee said the group’s facility in Shah Alam is well-equipped with spare capacity for MSMA1-related products to leverage the improving demand from Brazil and US.
“Building upon Ancom Nylex’s cost competitiveness and operational efficiency, we also sustained healthy orders for our AI products from our US clientele.
“Notwithstanding the growth catalysts ahead, we stay prudent in monitoring the macroeconomic shifts and global weather patterns, especially the El Niño phenomenon.
“All in all, our core focus remains on executing our growth strategies while steadfastly supporting crop growers through our quality Agrichem AI products.
Aligned with the global focus on food security, we strive to play a part in enhancing crop yields and fostering agricultural sustainability,” Lee concluded.
The Board of Directors has proposed a first interim dividend for the financial year ending 31 May 2024 (FY24) by way of dividend-in-specie through the distribution of ordinary shares on the basis of 1 Ancom Nylex share for every 100 Ancom Nylex shares held by shareholders.
