KUALA LUMPUR: Scientex Bhd
highlighted evolving challenges to its packaging division as it reported a lower bottomline in the second quarter of its financial year (2QFY25).
In remarks accompanying its latest results, it said the division faced intense industry competition, inflationary pressures, foreign currency fluctuations, geopolitical uncertainties, and subdued market sentiment.
In 2QFY25, Scientex posted a net profit of RM123.95mil, down from RM141.01mil as a result of market competition in industrial packaging products. Earnings per share dropped to 7.97 sen from 9.09 sen.
This was despite a marginal increase in revenue during the quarter to RM1.11bil from RM1.09bil previously.
The group's property segment, however, registered a 3.8% improvement in revenue to RM474.4mil compared to RM456.9mil in 2QFY24, as well as higher operating profit of RM133.1mil compared to RM127.3mil in the previous corresponding quarter.
For the six months period, the group's net profit was RM252.55mil compared to RM278.85mil, while revenue rose to RM2.21bil from RM2.2bil in 1HFY24.
"Despite the challenging external environment, the packaging division remains committed to drive sustainable performance in the current financial year," said Scientex in its outlook.
