Scientex Packaging’s 4Q net profit rises 28% on higher domestic sales

KUALA LUMPUR (Sept 28): Scientex Packaging (Ayer Keroh) Bhd’s net profit rose 27.75% to RM11.35 million for the fourth quarter ended July 31, 2022 (4QFY22), from RM8.89 million a year earlier, helped by higher domestic sales.

Earnings per share increased to 3.38 sen from 2.72 sen, the packaging solutions provider’s bourse filing showed.

Quarterly revenue grew 43.45% to RM191.84 million from RM133.73 million in 4QFY21, boosted by higher selling prices, and higher demand in both domestic and export sales.

Domestic sales as a percentage to group revenue rose to 52.9%, from 51.1%, the group said.

Full-year net profit dropped 8.25% to RM43.15 million from RM47.03 million in FY21, despite a 28.61% rise in revenue to RM774.05 million from RM601.87 million.

Scientex declared a final dividend of 2.5 sen, bringing the full-year dividend payout to five sen, compared with two sen in FY21.

Looking ahead, Scientex foresees demand for its products to remain strong, as the group continues to work with global and local brand owners to meet their sustainability goals, despite facing an increasingly volatile external environment.

“With priority [given to] innovation and development, we have successfully commercialised more sustainable flexible plastic packaging (FPP) products that fulfil the twin design of meeting the customers’ stringent packaging requirements, and yet are fully recyclable.

“As part of its longer term objective, the group is continuously working to embed sustainable practices and processes in its manufacturing [function] that supports the greater circular economy, as we seek to establish and enhance our position as a producer of quality sustainable FPP products for the global markets,” the group said.

Scientex said it will continue to monitor the operational challenges due to factors such as the ongoing geopolitical tensions, global supply chain challenges, shortage of labour, and rising inflationary pressures.

It added that the current socioeconomic conditions in Myanmar remain challenging, as the ongoing economic and political uncertainties were expected to weigh on Scientex’s operations, and were likely to affect its financial performance over the near term.

As such, the group said it would continue to work with its joint venture partner to manage its operations to minimise any adverse effects, while exploring options pertaining to the Myanmar operations.

“Save for its Myanmar operations, the group is relatively optimistic that it will be in a position to meet customers’ expectations and sustain its performance for the coming financial year,” it said.

Scientex Packaging’s share price settled unchanged at RM2.35 on Wednesday (Sept 28), bringing the group a market capitalisation of RM825.3 million.