Ancom posts best results since 2008 with RM23.9m FY21 net profit

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Ancom Berhad recorded strong fourth quarter and full-year financial results for the period ended May 31, 2021. — Picture courtesy of Ancom Berhad
Ancom Berhad recorded strong fourth quarter and full-year financial results for the period ended May 31, 2021. — Picture courtesy of Ancom Berhad

KUALA LUMPUR, July 30 — Ancom Berhad recorded strong fourth quarter and full-year financial results for the period ended May 31, 2021 amid a highly challenging operating environment.

In a statement, the leading manufacturer and supplier of agricultural and industrial chemicals in South-east Asia said its 4QFY21 revenue increased 44.1 per cent year-on-year to RM445.9 million compared to RM309.4 million in the same period last year.

It said the improvement was primarily driven by the agricultural chemicals segment as higher global demand bolstered the segmental top line by 28.6 per cent to RM79.9 million.

Higher trading volume and average selling prices also boosted the revenue of the industrial chemicals arm by 52.6 per cent y-o-y to RM325.1 million, the group added.

Ancom’s profit after tax and non-controlling interest also jumped to RM7.6 million in 4QFY21 versus a loss of RM11.8 million a year ago.

For the full year, Ancom’s revenue increased marginally by 4.5 per cent y-o-y to RM1.54 billion in FY21.

Meanwhile, the Group reported full-year net profit of RM23.9 million for FY21, which Ancom Berhad Group CEO Lee Cheun Wei noted was its best full-year bottom line since 2008.

“Our agricultural chemicals division has done very well, riding on the uptrend of global demand for food. We anticipate the trend to persist with a continued strong contribution from this segment. As for the industrial chemicals segment, our trading business has performed favourably too, having benefited from higher sales volume and generally higher average selling prices,” he said.

Given the restrictions in operations imposed during MCO/EMCO in the months of June and July, we have been very vigilant to comply with regulations while continuing to serve our clients as an integral part of the food supply chain. We are cognisant of the ongoing challenges such as freight costs and supply chain disruptions due to the pandemic, and we managed to deliver commendable results thus far.”

Lee added that he anticipates the growth trajectory of the Group, particularly the agricultural chemicals division, to remain strong.

“Recently, we have begun our production of new active ingredients at our existing plants and are expecting to add a few more to our portfolio once our new plant is ready by the first half of 2022. We are optimistic and will strive to continue to deliver good and satisfactory results for our shareholders next year,” he concluded.

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