Scientex hits record revenue of RM1.11bil in 4Q

KUALA LUMPUR: Fresh off record revenue in its recent financial quarter, Scientex Bhd said it will take a more aggressive approach to open up new markets with the progressive expansion of its production plants.

"We continue to bring new packaging innovations and develop value-added and customised products, as well as sustainable and fully recyclable solutions.

"The recent acquisition of Taisei Lamick Malaysia provides an immediate foothold in the fast-growing film business for liquid and paste packaging, as well as enhances our diversified offering especially in the Food and Beverage sector in Malaysia and regionally," said CEO Lim Peng Jin in a statement.

Announcing its results for the financial year ended July 31, 2022, the packaging manufacturer and property developer's final-quarter revenue surpassed the RM1bil mark for the first time on record.

4QFY22 revenue rose to 14.5% to RM1.11bil year-on-year (y-o-y) with the packaging segment contributing RM740.8mil or 66.7% of the total, and property the remaining RM370.5mil or 33.3%.

Operating profit however was only marginally higher at RM178.7mil due to the increased cost of constructional materials and labour while net profit dropped 12.39% to RM124.98mil.

On a 12-month basis, net profit was down 10.36% to RM409.87mil from the previous year on 9% higher revenue of RM3.99bil.

Earnings per share contracted to 26.43 sen from 29.5 sen in the year before.

In light of the performance, Scientex proposed a final dividend of five sen per share, payable on Jan 9, 2023, subject to shareholders approval at the coming annual general meeting.

For the year ahead, Lim said the group is strengthening its operational resilience and supply chain efficiencies, noting gradual improvements in labour availability in both its business segments.

"We are thus optimistic of achieving stable performance in the financial year ending 31 July 2023 (FY23)," he said.

In addition, Lim noted the strong take-up of its properties in various states, indicating the steady demand for affordable homes.

He said the group is committed to bringing more affordable homes to the Malaysian market.

A maiden project will be launched in Sungai Petani, Kedah, in FY23 as the group expands its footprint to more states, he said.