KUALA LUMPUR, July 18 — Ancom Nylex Berhad has reported today a record-high net profit for the financial year ending May 31, 2024 (FY24).
The company’s net profit increased by 8.4 per cent year-on-year to RM81.5 million, driven by strong performance in the Agricultural Chemicals (Agrichem) segment.
“We are proud to have registered our second consecutive year of best-ever net profit performance,” said Managing Director and Group CEO, Lee Cheun Wei, in a statement here.
“While we anticipate market challenges to persist in FY25, Ancom Nylex continues to be upbeat on our growth prospects.”
For FY24, Ancom Nylex’s revenue stood at RM2 billion, slightly lower than the RM2.04 billion recorded the previous year.
The Agrichem segment’s earnings before interest and tax (EBIT) rose 25.3 per cent year-on-year to RM106.5 million, due to stronger sales of higher-margin products.
The company is progressing with the development of a new active ingredient (AI) for its Agrichem segment, targeting commercial production soon.
Ancom Nylex said it has secured a long-term contract with a North American customer for a key AI product, providing earnings visibility for the future.
“While the production trial remains ongoing, we have successfully delivered samples to our clients for their in-house quality checks,” said Lee.
“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.”
The Industrial Chemicals segment has also shown improvements due to streamlining initiatives, with further benefits expected in FY25.
In the fourth quarter of FY24, the company recorded a net profit of RM18.4 million on a revenue of RM487.0 million, a slight increase from the previous year.
Despite higher impairment of trade receivables, Ancom Nylex continues to generate healthy net operating cash flow, amounting to RM128.6 million for FY24.
