KUALA LUMPUR: The construction of Ancom Nylex Bhd's (ANB) new factory in Klang is progressing as scheduled, and the company will be rolling out its new active ingredient (AI) by December 2023, further expanding its product offerings from 6 to 7 AIs with more in the pipeline.
Managing director and group chief executive officer Lee Cheun Wei said the global emphasis on food security has heightened the focus on proper crop management among major crop growers.
"This bodes well for our company as we anticipate a sustained demand for our agricultural chemicals (agrichem), which have consistently served as a key growth driver for ANB.
"Nonetheless, we remain mindful of the global weather patterns, notably the El Niño phenomenon's potential impact on different regional climates.
"While Thailand is experiencing drier weather, the increased rainfall in Brazil has resulted in greater weed growth, which in turn requires a higher volume of herbicide uses," he said after the company's 54th annual general meeting (AGM).
On the macroeconomic front, Lee said the surge in sugar prices in Brazil is projected to drive higher sugar production, leading to an increased need for ANB's agrichem products.
He said the company is also closely monitoring the Israel-Palestine conflict for its impact on logistics and potential disruptions to the chemical supply network.
"As always, we remain committed to supporting crop growers and maintaining industry stability with a consistent supply of quality niche agrichem AI products.
"On the whole, ANB's primary focus continues to be on executing our growth catalysts while staying agile and sustaining our positive momentum," Lee said.
Touching on financials, the integrated chemical company achieved a net profit of RM75.1 million on the back of RM2.04 billion in revenue for the financial year ending May 31, 2023 (FY23).
As for dividend payout, the company has paid an interim dividend of 1.0 sen per share for FY23 to its shareholders following its robust financial performance, improved financial position, and strong net operating cash flow.