Friday 21 Jun 2024
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KUALA LUMPUR (April 22): Ancom Nylex Bhd (ANB) has registered a 21.6% year-on-year jump in its net profit for the financial quarter ended Feb 29, 2024 (3QFY2024), attributable to improved margins for its agricultural chemicals and industrial chemicals divisions.

The group reported a net profit of RM20.11 million for the quarter, higher than the previous year's corresponding quarter of RM16.36 million. Revenue was up by 6.8% to RM516.78 million from RM483.95 million.

Its agricultural chemicals division reported a higher segmental profit of RM27.6 million from RM19.8 million a year earlier due to increased sales for products with higher profit margins.

Meanwhile, its industrial chemicals division's segmental profit also improved to RM5.6 million from the previous year's corresponding quarter of RM4.8 million, due to lower cost of sales of its products.

However, its investment holding division posted a higher segmental loss of RM5.7 million compared with RM200,000 a year earlier, due to higher operating expenses. The division comprises investment holding, information technology, media and electrical businesses.

Looking ahead, the group said the El Nino phenomenon and volatility in global economies could affect its businesses for the rest of the financial year. Nevertheless, it said it will continue to be vigilant in managing the risks as well as to explore more business opportunities.

"Barring any unforeseen developments, the group should perform satisfactorily for the remaining of the financial year," it stated.

For the nine-month financial period ended Feb 29, 2024 (9MFY2024), the group reported a 10% increase in its net profit, climbing to RM63.03 million from RM56.95 million in 9MFY2023. Revenue declined 3.6% to RM1.51 billion from RM1.57 billion.

Earlier, it proposed a first interim dividend for FY2024 by way of dividend-in-specie to its shareholders on the basis of one treasury share for every 100 ANB shares. The dividend-in-specie was completed on March 1, 2024.

Shares of ANB went up by three sen or 2.91% to RM1.06 at Monday's market close, valuing the group at RM1.07 billion.

Edited ByKamarul Azhar Mohamad Azmi
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