KUALA LUMPUR, 21 October 2025 – Ancom Nylex Berhad, Southeast Asia’s leading fully integrated chemical group, began the new financial year on a strong footing, posting a 52% year-on-year (YoY) rise in net profit to RM20.1 million for the first quarter ended 31 August 2025 (1QFY26), compared to RM13.7 million a year earlier.
The robust bottom-line performance was driven by improved profit margins in the Agrichem segment, alongside higher margins and operational efficiency gains within the Industrial Chemicals distribution business.
Revenue for the quarter came in at RM447.4 million, compared to RM515.5 million in 1QFY25, mainly due to lower selling prices and volumes in the Industrial Chemicals segment.
Steady Agrichem Growth and AI Commercialisation
Datuk Lee Cheun Wei (拿督李俊伟), Managing Director and Group CEO of Ancom Nylex, said the Group’s resilience reflects its ability to navigate a challenging global environment marked by tariff escalations and trade uncertainties.
“We are pleased to start the financial year on a firm note amid a challenging operating environment shaped by escalation of tariffs and uncertainties in trade negotiations,” said Datuk Lee.
“We continue to remain vigilant, as factors such as a weaker USD and cautious inventory strategies adopted by customers may weigh on export demand. Nevertheless, we anticipate a better outlook for export sales moving forward, supported by the upcoming procurement cycle in key export markets such as the United States and Australia, where buying activity typically strengthens ahead of their planting seasons.”
Ancom Nylex’s new active ingredient (AI), which entered commercial production last quarter, has already secured shipment volumes to Brazil, with additional orders being finalised for other export markets.
“Demand is expected to improve progressively over the coming quarters, in line with the seasonal application period in southern hemisphere countries,” Datuk Lee added.
Soybean Label Registration Progressing in Brazil
The Group’s core AI product registration for soybean application in Brazil is currently under regulatory review.
“We are hopeful for approval by end-2025, paving the way for commercialisation in the 2026 planting season. This development is particularly significant as soybean is a large-scale crop in Brazil, with a total planted area approximately five times greater than that of sugarcane,” he said.
Datuk Lee added that easing freight rates and stabilising logistics conditions are expected to support the Group’s performance in the coming quarters.
“We remain confident that our diversified product portfolio, our position as the sole large-scale producer of AI for herbicides in Southeast Asia, and our expanding opportunities in the soybean segment will drive a stronger performance for the remainder of FY26,” he concluded.
Strengthened Balance Sheet and Dividend Declared
Ancom Nylex’s net gearing improved to 0.26 times as of end-August 2025 (from 0.29 times in May 2025), reflecting a stronger balance sheet position. Net assets per share stood at RM0.57, while the Group generated positive net operating cash flow of RM29.6 million during the quarter.
The Board of Directors also declared a first interim single-tier dividend of 1.0 sen per ordinary share for FY26, which was paid on 21 August 2025.
