Chemicals group Ancom Nylex sees net profit tripling to RM68.2m in FY2022

Malay Mail
Malay Mail

KUALA LUMPUR, July 18 — Ancom Nylex Berhad today posted that its net profit year-on-year (YoY) jumped nearly threefold in its full-year financial report (FY22), skyrocketing from RM23.8 million in FY21 to RM68.2 million.

In a statement, Ancom Nylex — South-east Asia’s leading fully integrated chemicals group — also shared that its revenue also climbed 30.9 per cent YoY from RM1.54 billion in FY21 to RM2.01 billion in FY22.

According to the group, its agricultural chemicals (agrichem) division was the main contributor to its record-high profits, which reported revenue of RM462.8 million in FY22, rising by 39.4 per cent from the previous year.

“We are extremely delighted with the breakthrough results reported in FY22. As the world continues to focus on food security, growers of major crops are placing higher importance on proper crop management.

“Higher selling prices for our proprietary products due to strong demand, as well as contributions from two new active ingredient products, boosted our agrichem business,” said Lee Cheun Wei, Managing Director and Group CEO of Ancom Nylex.

The group said that revenue from its industrial chemicals division also grew by 33.5 per cent YoY to RM1.39 billion in FY22, adding that segmental earnings before interest and tax recorded a twofold increase from RM29.6 million to RM62.5 million.

It added that the revenue was inclusive of a one-off gain on the disposal of terminal assets, amounting to RM24.5 million.

Lee said that the group is also currently expanding its production capacity for its existing agrichem active ingredients portfolio to cope with the high demand from overseas and local markets.

“Meanwhile, the new facility meant for three more new active ingredient products is completed and is expected to go through manufacturing audits by the end of the year.

“In FY23, we will also start reaping the full benefits of our successful restructuring exercises, namely, the recent acquisition of the livestock chemicals business and the merger of the industrial chemicals business earlier this year,” he said.

He added that while Ancom Nylex is not immune to external factors, the group will remain focused on its growth, which is supported by the non-discretionary nature of its agrichem segment.

“Demand is rather inelastic and resilient due to our dominant position in this niche agrichem market,” Lee added.