KUALA LUMPUR (Jan 17): Ancom Nylex Bhd's net profit rose 7.59% to RM22.12 million for its second quarter ended Nov 30, 2023 (2QFY2024), from RM20.56 million a year earlier, helped by an improvement in profit margins from the lower cost of sales of its industrial chemical products.

Earnings per share increased to 2.33 sen from 2.30 sen, the group's filing with Bursa Malaysia showed.

Quarterly revenue was down 4.91% to RM505.16 million from RM531.25 million in 2QFY2023.

On a quarter-on-quarter basis, the group’s net profit came in higher from RM20.80 million in 1QFY2024, while revenue increased from RM487.36 million.

For the first half of FY2024, net profit climbed 5.74% to RM42.92 million from RM40.59 million in the previous corresponding period.

Six-month revenue, however, declined 8.19% to RM992.52 million from RM1.08 billion previously, mainly due to lower revenue contribution from its agricultural chemicals division.

Ancom Nylex declared its first interim dividend by way of distributing treasury shares on the basis of one dividend share for every 100 Ancom Nylex shares held.

Looking ahead, the group said the El Nino phenomenon, coupled with the geopolitical tensions and tighter monetary policy, will affect the group’s businesses.

“The board will continue to be vigilant in managing these risks and continue to explore and expand opportunities for our business. Barring any unforeseen, the group should perform satisfactorily for the remaining of the financial year,” it said.

Shares in Ancom Nylex finished three sen or 2.68% lower to RM1.09 on Wednesday, giving the company a market capitalisation of RM1.09 billion.