PETALING JAYA: Ancom Nylex Berhad (“Ancom Nylex” or the “Group”), Southeast Asia’s leading fully integrated chemical group, formerly known as Ancom Berhad, has released its financial results for the fourth quarter (“4QFY24”) and full fiscal year ended 31 May 2024 (“FY24”).
In FY24, the Group reported revenue of RM2.00 billion, slightly lower than the RM2.04 billion achieved the previous year. Despite this, Ancom Nylex achieved its highest-ever bottom-line performance, with profit after tax and non-controlling interest (“PATNCI” or “net profit”) increasing by 8.4% year-on-year to RM81.5 million, surpassing the record RM75.1 million from FY23. The Agricultural Chemicals (“Agrichem”) segment was a key growth driver, with earnings before interest and tax (“EBIT”) rising 25.3% YoY to RM106.5 million, driven by stronger sales of high-margin products.
Mr. Lee Cheun Wei, Managing Director and Group CEO of Ancom Nylex, commented, “We are proud to achieve our second consecutive year of record net profit performance, especially amidst ongoing macroeconomic uncertainties. While we anticipate continued market challenges in FY25, Ancom Nylex remains optimistic about our growth prospects.”
He continued, “Progress in our Agrichem segment is notable, particularly with our new active ingredient (‘AI’). We have successfully completed client sample deliveries and aim to commence commercial production using in-house intermediates to mitigate previous supply chain disruptions.”
“Demand remains robust in Latin and North American markets for our core AI products. We are expanding our proprietary product range for larger-hectare crops in Latin America, advancing label registrations, and have secured a significant long-term contract with a North American customer,” Mr. Lee added.
He also noted improvements in the Industrial Chemicals segment, anticipating further performance gains in FY25. Despite challenges such as heightened shipping costs, Mr. Lee emphasized their commitment to building on FY24’s strong momentum and record bottom-line results.
For 4QFY24, the Group reported a net profit of RM18.4 million on revenues of RM487.0 million, a slight increase from RM18.2 million and RM478.2 million respectively in the same quarter last year. However, net profit for 4QFY24 declined from RM20.1 million in the previous quarter due to increased impairment of trade receivables adhering to prudent accounting practices.
Throughout FY24, Ancom Nylex maintained a robust net operating cash flow (“NOCF”) of RM128.6 million, continuing its positive NOCF streak since FY18.
