Thursday 28 Mar 2024
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KUALA LUMPUR (July 26): Driven by higher segmental profit from its agricultural and industrial chemicals, logistics, and information technology (IT) divisions, Ancom Bhd has doubled its net profit to RM8.51 million in the fourth quarter ended May 31, from RM4.2 million in the corresponding quarter a year ago.

Earnings per share amounted to 3.95 sen against 1.95 sen previously.

In a bourse filing, the diversified group said the improved segmental profit in the agricultural and industrial chemicals division was due to higher volume sales for certain industrial chemical products.

In logistics, the increased profit came on the back of an improved performance of its Nylex 1 vessel and higher foreign exchange gain recognised during the quarter.

However, Ancom's investment holding, media, and polymer divisions all recorded segmental losses.

Quarterly revenue for the group stood at RM580.08 million, up 21.3% from RM478.23 million recorded in the same quarter last year.

For the full year, Ancom's net profit remained flattish at RM17.58 million against RM17.47 million last year. This was despite a 15% increase in revenue to RM1.95 billion from RM1.7 billion.

Ancom said the effective rate of taxation for the group is higher than the statutory tax rate mainly due to losses in certain subsidiaries that are not available for set-off against taxable profits in other companies within the group.

Looking ahead, it said the performance of its key business segments — agricultural and industrial chemicals, and polymer divisions — was expected to remain positive given the satisfactory results in the current financial year.

"However, for the media division, the immediate outlook is expected to be challenging due to the weak domestic market sentiments," the group said.

Ancom closed unchanged at 53.5 sen for a market capitalisation of RM115.12 million.

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