The rise in profit for the region’s leading fully integrated chemical group came on the back of tax expenses which fell to RM5.88 million from RM16.78 million in Q3 FY2022.

The group registered a revenue of RM1.57 billion for the nine-month period (9MFY2023), 8.1% higher than the RM1.45 billion in the previous year’s corresponding period.

For 9MFY2023, net profit jumped 57.1% y-o-y to RM56.9 million from RM36.3 million a year ago, marking an all-time high for the group.

However, Q3 revenue fell by 5.11% to RM483.95 million from RM510.01 million, as the group reported lower contributions from its industrial chemicals segment at RM320 million compared to RM371.9 million in Q3 FY2022.

Group managing director and CEO Lee Cheun Wei said, “The healthy order flow from our agrichem business pushed our nine-month bottom-line to a record high of RM56.9 million.

“While we are mindful of the challenges ahead, we remain fully focused on our growth plans.”

In its bourse filing today, Ancom said that barring any unforeseen circumstances, the group should perform satisfactorily for the current financial year.

Separately it announced its wholly owned subsidiary Ancom Crop Care Sdn Bhd had entered into a share sales agreement with other vendors to acquire a 70% equity interest in H.J. Unkel Chemicals Sdn Bhd (HJU Chemicals) for RM9 million.

The proposed acquisition will come with a net profit guarantee of RM2.5 million for HJU Chemicals. The move looks to increase profitability by insourcing procurement.

“This is a synergistic move as HJU Chemicals could be supplying surfactant chemicals to its agrichem division for the production of active ingredients,” the statement said.

At the close today, Ancom’s share price fell 1 sen to RM1.12, valuing the company at RM1.09 billion.