KUALA LUMPUR (Oct 27): Ancom Nylex Bhd expects a sustained demand for its agricultural chemical (agrichem) products as the global emphasis on food security has led to a heightened focus on proper crop management among major crop growers.

At the same time, the group remains mindful of the global weather patterns, notably the El Nino phenomenon's potential impact on different regional climates, the group said in a statement issued after its annual general meeting on Friday.

“On the macroeconomic front, the surge in sugar prices in Brazil is projected to drive higher sugar production, leading to an increased need for our agrichem products," said Ancom Nylex CEO and managing director Lee Cheun Wei. “Additionally, we are closely monitoring the Israel-Palestine conflict on its impact on logistics and any potential disruptions to the chemical supply network."

Ancom Nylex said it has constructed a new factory in Klang to expand its production capacity and diversify its product range.

The group noted that it registered its best-ever net profit of RM75.1 million for the financial year ended May 31, 2023, up 10.2% compared with RM68.2 million for the previous year. Revenue rose to RM2.04 billion from RM2.01 million.  

Shares in Ancom Nylex closed one sen or 0.85% higher at RM1.19, giving the group a market capitalization of RM1.18 billion.