SCGM posts RM7.82mil profit in 2Q, declares 1.7 sen dividend

KUALA LUMPUR: SCGM Bhd’s net profit fell 18.57% to RM7.82mil in the second quarter ended Oct 31 (2Q22), from RM9.61mil posted a year ago, mainly due to higher deferred tax expenses.

Its pre-tax of RM9.872mil was 8.1% lower than the RM10.74 mil recorded in the preceding year’s corresponding quarter.

SCGM said the lower pre-tax profit was due to higher resin prices in spite of the upward adjustment of selling prices in the second half of the financial year ended April 30, 2021 (2H21), as well as costs of Covid-19 vaccination exercise and related expenses for workers during the current quarter.

The group posted a 18.9% growth in revenue to RM72.5mil in 2Q22 from RM61mil a year ago, driven by climbing demand for thermo-form food and beverage (F&B) packaging in Malaysia and its export countries.

SCGM has declared the second interim dividend of 1.7 sen per share in respect of FY22, which will be paid on Jan 26, 2022, with an ex-date on Jan 11, 2022.

Combined with the earlier-paid first interim dividend paid in October 2021, the dividend payout in respect of FY22 of RM7.1mil represents 44% of 1H22 net profit, in tandem with SCGM’s dividend policy of distributing at least 40% of net profits to shareholders.

In the first six months to Oct 31, SCGM posted a net profit of RM16.11mil on revenue of RM141.84mil.

SCGM managing director Datuk Sri Lee Hock Chai said that the reopening of economic sectors under the National Recovery Plan during the quarter, alongside the group’s large customer base and distribution network, had worked in the group's favour.

“SCGM benefitted from the strong rebound in demand from F&B retailers and manufacturers, especially as Malaysia’s sectors gradually reopened after achieving high vaccination rate nationwide,” he said in a statement.

Lee said the group was also mindful of the rising costs of raw materials, particularly resin, compared to the low-demand price points a year ago.

“The upward revision in selling prices in the second half of financial year ended April 30 had only partially addressed the higher costs, but we are hoping to mitigate it further with customizing new products to develop a more favourable sales mix,” he said.

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