PETALING JAYA: Scientex Packaging (Ayer Keroh) Bhd
will call it quits for its Myanmar operations as there are no signs of improvements in the coming days.
In a filing with Bursa Malaysia, the flexible plastic packaging provider said it had faced prolonged operational challenges in the South-East Asian country over the last few years, mainly due to ongoing economic and political instability.
“Accordingly, the group will work towards minimising the operational and financial impact from this cessation, and continue to focus on prudently managing its costs while sustaining competitiveness moving forward,” it said in a statement.
According to Scientex Packaging, it has planned for a number of operational measures including optimised machine utilisation, waste reduction and enhanced workforce productivity.
The group added to meet the evolving market needs where sustainability has become central to modern consumer lifestyles, it will use its technical expertise and innovation capabilities to deliver customer-centric packaging solutions whilst working closely with its customers in achieving their sustainability objectives.
“Reinforcing our commitment to reducing carbon footprint in operation, our solar rooftop photovoltaic (PV) systems have been fully energised.
“The solar rooftop PV systems will contribute to lower energy costs and reduce Scope 2 emissions, demonstrating our dedication to integrate renewable energy into its operations,” the group said.
Meanwhile, on its earnings for the quarter ended April 30, 2025, Scientex Packaging posted a lower revenue of RM172.86mil.
This compared to the RM182.85mil posted in the same quarter a year ago.
Subsequently, its net profit was also lower at RM7.22mil compared to the RM10.01mil registered in the same quarter last year.
Scientex Packaging said the decline was on the back of lower sales in its export market, due to appreciation of the ringgit and sales mix.
For its nine-month showing, its revenue increased to RM536.03mil from RM531.67mil.
Net profit, however, dropped to RM29.87mil due to changes in its sales mix, market competition and foreign-exchange losses.
The group said in respect of its financial year ending July 31, 2025, it has declared a single-tier interim dividend of 2.50 sen per ordinary share, payable on July 15, 2025.
Meanwhile, in the company’s annual report, Scientex Packaging director and chairman Choo Seng Hong said he remains upbeat on the positive growth trend in the global flexible plastic packaging (FPP) market.
This, he said, was in spite of the anticipated headwinds that are set to persist in the near term, mirroring the operational pressures faced in financial year 2024.
“The Asia-Pacific region is poised to witness robust growth which augurs well for the group with our proven reputation as a reliable FPP supplier for renowned brand owners.
“Drawing on our strong manufacturing footprint, state-of-the-art packaging facilities, innovative capabilities and backed by a dynamic workforce, the group is favourably positioned to capitalise on the emerging opportunities as we strive to sustain our growth trajectory.”
