PETALING JAYA: Ancom Nylex Bhd, Southeast Asia’s leading fully integrated chemical group, reported a resilient performance for the third quarter ended 28 February 2025 (3QFY25), supported by sustained demand in its agrichemical (Agrichem) segment despite continued macroeconomic challenges.
The Group posted a revenue of RM449.0 million for the quarter, down from RM516.8 million a year ago, largely due to softer contributions from its Industrial Chemicals segment, impacted by lower selling prices and volume. Net profit attributable to shareholders stood at RM18.0 million, a slight decline from RM20.1 million a year earlier, primarily due to adverse US dollar fluctuations affecting both selling prices and import costs.
Quarter-on-quarter, revenue held steady compared to RM450.7 million in 2QFY25. However, net profit saw a 19.1% increase from RM15.2 million, driven by stronger performance in the Agrichem segment.
For the nine-month period (9MFY25), the Group reported cumulative revenue of RM1.42 billion and net profit of RM46.4 million, compared to RM1.51 billion and RM63.0 million respectively in the same period last year.
Managing Director and Group CEO Datuk Lee Cheun Wei said the Group had remained resilient in the face of ongoing global uncertainties, including geopolitical tensions and forex volatility. He credited the stable demand in the Agrichem segment, particularly for MSMA-based products, as a key factor in cushioning broader impacts.
“Our strategic positioning as one of the few global producers of key active ingredients has enabled us to fill market gaps. We are also expanding into larger hectarage crops with encouraging progress in label registration,” Datuk Lee said.
The Group is preparing to commence commercial production of a new active ingredient (AI) following the completion of in-house intermediate production machinery. This new AI is expected to support expanded market reach and reinforce Ancom Nylex’s role in the global agrichem value chain.
While remaining vigilant of rising trade barriers and local cost pressures—including a potential RM1 million annual impact from the recent minimum wage hike—Datuk Lee emphasised that the Group continues to identify and seize market opportunities.
Financially, the Group’s position has strengthened with net gearing reduced to 0.20 times as of end-February 2025, down from 0.38 times at end-May 2024. Total borrowings decreased to RM287.9 million, with over 85% allocated to short-term working capital.
In line with its performance, Ancom Nylex has proposed a second interim dividend in the form of treasury share distribution, offering one treasury share for every 100 shares held by shareholders.
