PETALING JAYA: Southeast Asia’s leading fully integrated chemical group Ancom Nylex Bhd registered revenue of RM1.87 billion for the financial year ended May 31, 2025 (FY25) compared to RM2 billion a year ago.
The drop was attributed mainly to softer contributions from the industrial chemicals segment, due to lower selling prices and volumes.
Meanwhile, FY25 net profit came in at RM63.5 million, down from RM81.5 million last year, primarily attributed to elevated freight costs and unfavourable foreign exchange fluctuations.
For the fourth quarter of FY25 (Q4’25), the group posted revenue of RM459.4 million, compared to RM487.2 million in the same quarter last year. This was predominantly due to the lower contribution from the industrial chemicals business.
On a positive note, the agrichem segment delivered revenue growth of 16.1% to RM135.4 million in Q4’25, up from RM116.6 million in Q4’24, driven by higher sales.
At the bottom line, Q4’Y25 net profit stood at RM17.1 million compared to RM18.4 million last year. This was primarily due to elevated production costs in the agrichem business as well as a higher effective tax rate.
Managing director and group CEO Datuk Lee Cheun Wei said FY25 has been a demanding year, marked by key geopolitical events that led to elevated freight costs and unfavourable foreign exchange fluctuations, which in turn impacted the group’s overall performance.
He said escalating tariffs and volatile trade conditions could further impact both global and domestic economic projections, making it increasingly challenging to predict trends in raw material costs and market prices.
Despite these headwinds, Malaysia’s economic growth is anticipated to remain positive over the next 12 months, with potential for further advancement should global conditions stabilise, Lee noted.
“On a much brighter note, we are pleased to share that the commercial production of our new active ingredient (AI) has commenced. Production yield has been increasing steadily, and deliveries to our customers are already under way. This marks an important milestone, further strengthening our position in the value chain and cementing our role as the sole large-scale producer of AI for herbicides in Southeast Asia,“ he said in a statement.
Turning to Ancom’s MSMA-based products, Lee said the group continues to capitalise on its position as one of only two producers globally, seizing opportunities arising from the market demand gaps.
“The overall demand for our agrichem segment remains stable. Looking ahead, we anticipate the upcoming financial year (FY26) to be a better year for us, given the promising opportunities ahead while remaining vigilant of the headwinds.”
For FY25, the group has paid a first interim dividend by distributing treasury shares on a 4:100 basis, as well as a second interim dividend by distributing treasury shares on a 1:100 basis.
Ancom Nylex’s financial position continued to improve, with net gearing improving to 0.29 times as of the end of May 2025, compared to 0.38 times at the close of the previous financial year (end of May 2024).
Total borrowings declined to RM323.1 million at the close of the financial year under review compared to RM347.6 million as at 31 May 2024. Notably, more than 85% of the total borrowings are for short-term working capital needs.
