Ancom 1Q net profit up by nearly three times on better showing by both chemicals segments

Ancom 1Q net profit up by nearly three times on better showing by both chemicals segments
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KUALA LUMPUR (Oct 28): Ancom Bhd’s net profit surged 195.42% to RM9.04 million for the first quarter ended Aug 31, 2021, from RM3.06 million a year earlier, on strong revenue contribution from both its agricultural and industrial chemicals segments.

Earnings per share rose to 3.7 sen from 1.28 sen, the group’s filing with Bursa Malaysia showed.

Quarterly revenue jumped 16.93% to RM404.73 million from RM346.12 million.

The agricultural chemicals division’s revenue increased to RM115.5 million from RM87.4 million in the same quarter last year, thanks to higher export sales.

The industrial chemicals division also saw a rise in revenue to RM259.1 million from RM217.4 million, mainly due to higher sales by its distribution business as a result of higher average selling prices for its products.

On prospects, Ancom said the board will continue to explore opportunities and build new capabilities to strengthen the group’s businesses and be more resilient to face future challenges.

“The Covid-19 pandemic is expected to prevail into 2022. Nevertheless, with the rising vaccination rate worldwide and gradual reopening of economies, the consumer sentiment and business outlook should improve in the near future.

“Barring any unforeseen circumstances, the group should perform satisfactorily for the current financial year,” the group said.

Ancom’s share price closed 3 sen or 1.07% lower at RM2.78, giving the group a market valuation of RM683.3 million. The counter saw 3.31 million shares traded.

S Kanagaraju