PETALING JAYA: Southeast Asia’s fully integrated chemical group, Ancom Nylex Berhad’s
group revenue came in at RM2.00 billion FY24 versus RM2.04 billion achieved a year ago.
This was disclosed when the company announced its fourth quarter (4QFY24) and 12 months financial results for the period ended May 31, 2024 (FY24).
Meanwhile, Ancom Nylex posted its best-ever bottom-line performance for the financial year under review. FY24 profit after tax and non controlling interest (PATNCI or net profit) rose 8.4% year-on-year (YoY) to RM81.5 million. This surpassed the record RM75.1 million posted in FY23.
Agricultural Chemicals (Agrichem) segment continued to be the key growth contributor. Earnings before interest and tax (EBIT) for this segment jumped 25.3% YoY to RM106.5 million vis-à-vis RM85.0 million in FY23. This was chiefly attributed to stronger sales of products with better profit margins.
Ancom Nylex managing director and Group CEO Lee Cheun Wei said, “We are proud to have registered our second consecutive year of best-ever net profit performance especially on the back of the macroeconomic uncertainties. While we anticipate market challenges to persist in the upcoming financial (FY25), Ancom Nylex continues to be upbeat on our growth prospects.”
For their Agrichem segment, he added they are charting good progress for their new active
ingredient (AI).
“While the production trial remains ongoing, we have successfully delivered samples to our clients for their in-house quality checks. We target to start commercial production of the new AI, mainly using the intermediate produced in-house to circumvent supply chain disruptions previously encountered when importing the intermediate inputs,” said Lee.
On the demand outlook, he said Latin and North American markets continue to experience sustained demand for their core AI-related products.
The Group, he added is making headway to expand their proprietary product offerings to larger-hectare crops in Latin America.
“We are actively pursuing label registration and have completed three trials on larger-hectare crops with promising results. More excitingly, we have recently secured a long-term contract with a North American customer for the supply of a key AI product. This gives us healthy earnings visibility for the coming years,” said Lee.
Meanwhile, he added the streamlining initiatives for their industrial chemicals segment
have begun to bear fruit, with more benefits to their performance expected to be realised in FY25.
Forging ahead, he said they are looking to build on the strong positive momentum and record bottom-line performance achieved in FY24 while being mindful of the global economic conditions such as elevated shipping costs.
For the current quarter under review, the Group recorded a net profit of RM18.4 million against a revenue of RM487.0 million. This was a slight improvement from RM18.2 million and RM478.2 million respectively from a year ago.
On a quarteron-quarter (QoQ) basis, 4QFY24 net profit was lower than the RM20.1 million
achieved in the immediate preceding quarter due to higher impairment of trade receivables made in adherence to prudent accounting practices.
Ancom Nylex generated yet another healthy net operating cash flow (NOCF) for FY24, amounting to RM128.6 million. The Group has been generating positive NOCF every year since FY18.
