Ancom 4Q loss narrows to RM4.49 million

Ancom 4Q loss narrows to RM4.49 million
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Wednesday, 31 July 2013 19:23

KUALA LUMPUR (July 31): Chemical and herbicide manufacturer ANCOM BHD [] narrowed its net loss in its fourth quarter from a year earlier. This came on higher revenue.

Revenue had risen on higher income from its agriculture and industrial chemical unit, and media division, Ancom said in a filing with Bursa Malaysia.

The company said net loss for the three months ended May 31, 2013 (4QFY13) was RM4.49 million on revenue of RM525.38 million. A year earlier, Ancom’s net loss stood at RM5.42 million on revenue of RM507.96 million.

The company’s full-year net loss was RM19.93 million on the back of RM2.03 billion in revenue. This compares with a net loss of RM9.01 million on revenue of RM1.75 billion.

Ancom said the wider net loss was due to non-recurring losses from the dilution of interest in a subsidiary.

It had also incurred a higher effective tax rate than the statutory level on losses in certain subsidiaries that are not available for set-off against taxable profits in other subsidiaries.

Ancom said the coming financial year is expected to be challenging.

“Among the key business segments, agricultural and industrial chemical division should perform satisfactorily but there is pressure on profit margins as product suppliers and logistic providers seek higher prices.

“Logistics division should maintain its performance with its existing capacities and utilisations. The polymer division is expected to be satisfactory despite stiff competition from cheaper imports. After undergoing structural and operational reorganisation in the past, media division is now in a better position for future growth,” said Ancom.