Scientex Packaging records 1Q net profit of RM12.28mil

KUALA LUMPUR: Announcing positive results for the first quarter of its 2023 financial year, Scientex Packaging (Ayer Keroh) Bhd says expansion plans remain on track and it is optimistic it would be able to sustain its performance for the coming financial year.

In a filing with Bursa Malaysia, the plastic packaging manufacturer said greater resources were being allocated to develop innovative and value-added customised products to meet evolving market trends and packaging requirements.

"As part of its longer term objective, the group is continuously working to embed sustainable practices and processes in its manufacturing process that supports the greater circular economy as the Group seeks to establish and enhance its position as a producer of quality sustainable flexible plastic packaging products for the local and global markets," it said.

With regards to the operational challenges caused by the ongoing geopolitical tension in Ukraine, global supply chain challenges and rising inflationary pressures, the group said it is pro-active with its engagement with customer and suppliers to manage and mitigate the issues

However, it acknowledged that there has been no substantial change in the socioeconomic conditions in Myanmar, and expects the situation there to remain challenging over the short- and medium-term.

For the first quarter of its financial year ended Oct 31, 2022, Scientex Packaging posted a net profit of RM12.28mil, a 25.26% increase over the previous corresponding quarter.

Earnings per share in 1QFY23 was 3.5 sen as compared with 2.99 sen in 1QFY22.

The group said operating profit for the quarter surged 83% year-on-year to RM17.45mil on the increase in revenue, improved margin due to lower raw material prices and favourable product mix.

Revenue meanwhile was up 18.6% to RM213.92mil on better product mix and higher demand in both domestic and export sales.

Export sales as a percentage to group revenue rose to 51.2% compared to 47.1% recorded in the preceding year corresponding quarter.

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