KUALA LUMPUR, April 18 — Ancom Nylex Bhd has reported a net profit of RM56.9 million for the first three quarters of its 2023 financial year, with firm demand propelling the leading regional chemical firm to its best performance in a nine-month period.
According to the firm, the profit came off its RM1.57 billion in revenue for the three quarters ending February 28 this year, which was an 8.1 per cent improvement versus the same period last year.
Ancom Nylex said its agricultural chemicals (agrichem) division was the major contributor to the stellar performance, delivering RM440 million in revenue for the nine-month period or 26.7 per cent better than the corresponding period in the previous financial year.
“The healthy order flow from our agrichem business pushed our nine-month bottom-line to a record high of RM56.9 million,” said Lee Cheun Wei, the managing director and group CEO of Ancom Nylex.
“We are certainly pleased with this achievement, especially given the current uncertain market conditions.”
For the current quarter, Ancom Nylex reported a provisional net profit of RM16.4 million, an increase of 8 per cent year-on-year, from a RM483.9 million in revenue.
Lee was also bullish about the firm’s future performance, saying that new reactors being installed in its Shah Alam plant would boost Ancom Nylex’s ability to meet capitalise on rising demand stemming from regulatory changes in the region.
He also expressed optimism on the prospects of a new active ingredient under development, which was expected to go into production at the end of the year to further drive the firm’s performance going into the new financial year.
On a separate matter, Ancom Nylex said it has entered an agreement to purchase a 70-per cent stake in HJ Unkel Chemicals Sdn Bhd for RM9 million, which stood to improve the profitability of its agrichem operations by integrating the supply of the latter’s surfactant chemicals.
