Scientex Packaging on track to sustaining performance in FY23

KUALA LUMPUR: As it deals with a lower demand from both its domestic and export markets, Scientex Packaging (Ayer Keroh) Bhd remains optimistic of sustaining its performance in the current financial year.

According to the plastics packaging producer, the ongoing geopolitical uncertainties coupled with rising inflationary pressures continue to weigh on and dampen consumer consumption.

It said in a filing with Bursa Malaysia, this has resulted in reduced demand and rising operational costs.

In the third quarter ended April 30, 2023, the group said net profit was RM10.14mil, down from RM10.31mil in the previous corresponding quarter, on the back of a 14.4% year-on-year decline in revenue to RM177.49mil.

The group's net earnings per share was 2.89 sen, as compared with 3.15 sen in 3QFY22.

Operating profit however was up 15.1% to RM14.15mil from RM12.29mil in the comparative quarter in 2022, attributable to the softening of raw material prices, favourable product mix and gradual normalisation of freight costs.

In line with the performance, the board declared an interim dividend of 2.5 sen per shar, with ex-date on July 4, 2023, and payable on July 17, 2023.

Over the nine months period to April 30, 2023, Scientex Packaging's net profit was RM35.79mil, compared to RM31.8mil in the same period last year while revenue was RM589.47mil compared to RM582.21mil in the comparative period.

Moving forward, the group said it continues to invest in longer-term growth and innovations to develop consumer-centric products that meet customers product sustainability and performance requirements.

"Our capacity expansion plan which is intended to enhance production capacity and capabilities remains on track, placing us in a good position to capitalise on growth opportunities," it said.

Meanwhile, the group said it is also progressively embedding sustainable practices and processes in its manufacturing process as part of its objective to promote sustainably manufactured products to further boost the circular economy.

On its Myanmar operations, the group said the socioeconomic conditions continues to pose operational challenges in the foreseeable short- and medium-term.

"The group will nonetheless continue to manage its operations to minimise adverse effects while exploring options pertaining to its Myanmar operations," it added.