SCGM’s FY22 net profit dips on higher input costs

Commenting on the results, SCGM managing director Datuk Sri Lee Hock Chai said that the pandemic had been a double-edged sword to its business.

PETALING JAYA: SCGM Bhd reported an 8.1% dip in net profit to RM30.9mil for the financial year ended April 30, 2022 (FY22) on higher input costs despite a rise in revenue.

In a statement yesterday, the food packaging manufacturer said that total revenue rose 15.5% to RM284.7mil from RM246.5mil previously.The higher revenue was driven by sales in the food and beverage (F&B) packaging segment, which constituted RM245.8mil or 86.3% of FY22 revenue. The segment posted 18.8% higher sales in FY22 from RM206.9mil a year ago as consumers shifted their preferences to deliveries and takeaways after the onset of the Covid-19 pandemic.

For the fourth quarter of FY22, the company posted an 11.1% rise in net profit to RM8.47mil, while revenue rose 8.8% to RM71.54mil against RM65.74mil recorded in the same quarter last year.

Commenting on the results, SCGM managing director Datuk Sri Lee Hock Chai said that the pandemic had been a double-edged sword to its business.

“On one hand, our topline posted stellar performance from our F&B packaging segment. On the other hand, FY22 bottomline was weighed down by the fluctuating raw material prices as a result of supply chain disruptions. This happened in spite of our efforts in adjusting selling prices upwards,” he added.

The group declared a fourth interim dividend of 1.32 sen per share in respect of FY22, which will be paid on July 29, 2022, with an ex-date on July 14, 2022.

Alongside the previously-paid first, second and third interim dividends, SCGM’s total dividend payout for FY22 amounts to RM12.4mil or 40% of its net profit. SCGM has a dividend policy of distributing at least 40% of net profits to shareholders.

Last month, SCGM announced that it had entered into a conditional share sale agreement with Tokyo-listed Mitsui & Co Ltd and FP Corporation to dispose 100% stake held in its only subsidiary, Lee Soon Seng Plastic Industries Sdn Bhd (LSSPI), for about RM544.38mil.

“Upon completion of the proposed disposal of LSSPI to the Japanese parties, the board of SCGM proposes to distribute part of the disposal consideration, amounting to approximately RM425.56mil, to all entitled shareholders of SCGM within nine months after the disposal.

“This will be done via a proposed capital reduction and repayment exercise, as well as a proposed special dividend,” the company said.

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SCGM , Lee Hock Chai , food , packaging ,


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