KUALA LUMPUR: Ancom Nylex Bhd is upbeat on its growth prospects on the back of a record bottomline achieved in its 2024 financial year (FY24), although it anticipates market challenges will remain in the upcoming financial year.
The fully integrated chemical group said it posted a net profit of RM81.47mil in the financial year ended May 31, 2024, which compares to a net profit of RM75.13mil in the previous year.
The group’s earnings per share rose to 8.58 sen from 8.43 sen in FY23 while revenue fell slightly to RM2bil from RM2.04bil.
In the fourth quarter of FY24, the group recorded a net profit of RM18.44mil against RM18.18mil in 4QFY23, on revenue of RM486.96mil against RM478.25mil.
Managing director and CEO Lee Cheun Wei said the group’s agrichem segment charting good progress for its new active ingredient (AI).
“While the production trial remains ongoing, we have successfully delivered samples to our clients for their in-house quality checks.
“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,” he said in a statement.
He said the group continues to see sustained demand for its core AI-related products from its Latin and North American markets, and is making headway to expanding its proprietary product offerings to larger-hectare crops in Latin America.
In the industrial chemicals segment, Lee said streamlining initiatives have begun to bear fruit with more benefits to its performance expected to be realised in FY25.