Ancom Nylex posts record RM63m nine-month profit, rise of 10.7pc from last year driven by agrichem sector

KUALA LUMPUR, April 24 — Chemicals manufacturer Ancom Nylex Bhd announced that it has recorded its all-time net profit of RM63 million over the nine months ending February 29, 2024, (9MFY24) to surpass the RM60-million mark for the first time.

This was an increase of 10.7 per cent year-on-year compared to RM56.9 million previously, amid a revenue of RM1.51 billion and earnings before tax and interest of RM79.3 million.

Managing Director and Group CEO of Ancom Nylex, Lee Cheun Wei touted a positive outlook for the group, highlighting its artificial intelligence (AI)-based products.

“Looking ahead, the outlook for Ancom Nylex continues to be bright as we move forward with the strategic initiatives we have in place. For our new AI, we have started delivering samples to clients for their in-house quality checks,” Lee said in a statement.

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He said samples of their new AI product are already being delivered to clients for quality checks while a new in-house production process is being implemented to complement overseas sourcing, enhancing procurement efficiency.

“This strategic decision complements our overseas sourcing, accelerating procurement and mitigating potential shipping issues. We anticipate machine installation to be completed by July. Thereafter, we will immediately commence manufacturing of our new AI as the production line is ready,” he said.

Additionally, Lee said the group is seeing sustained demand for its core AI-related products in Latin and North America, prompting it to plan on offering its product to larger-hectarage crops in Latin America.

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“As for the industrial chemicals segment, we have implemented streamlining measures to optimise the business. We are confident that these measures will reflect positively on the group’s performance in the coming financial year.

“At the same time, the Group is also cognisant of the global market volatility and remains vigilant in managing these risks,” he added.

Meanwhile, the group’s revenue for the third quarter of the financial year ending February 2024 (3QFY4) rose to RM516.8 million, up from RM483.9 million in the same period in the previous year.

It said the growth was primarily driven by strong performances in the agricultural chemical (agrichem) and industrial chemical segments.

Net profit for the quarter stood at RM20.1 million, a significant increase from RM16.4 million in the same quarter in the previous year, attributed to improved sales of higher-margin products within the agrichem segment.

Established in 1969 as Ansul (Malaysia) Sdn Bhd, Ancom Nylex is a diversified group with businesses in agricultural chemicals, industrial chemicals, chemical logistics, amongst others and has been listed in the Main Market of Bursa Malaysia Securities Bhd since 1990.

It is the sole manufacturer of herbicide active ingredients in South-east Asia and one of the only two key manufacturers of ethanol in Malaysia.