KUALA LUMPUR (June 19): Plastic packaging producer Scientex Packaging (Ayer Keroh) Bhd, formerly known as Daibochi Bhd, saw its net profit fell by 1.64% to RM10.1 million in its third financial quarter ended April 30, 2023 (3QFY2023), against RM10.3 million posted a year ago.

Net profit fell due to a decline in revenue and rising energy costs, its filing to Bursa Malaysia showed on Monday (June 19).

Quarterly revenue fell 14.4% to RM177.4 million, from RM207.4 million a year ago, due to lower product demand from both the domestic and export markets.

The domestic market contributed RM96.41 million or 54.3% of the group’s 3QFY2023 revenue while exports contributed the balance RM81.08 million or 45.7%.

The group declared a single-tier interim dividend of 2.5 sen per share, payable on July 17.

For the nine-month period (9MFY2023), the group's net profit rose 12.6% to RM35.8 million from RM31.8 million a year prior, while revenue increased marginally by 1.2% to RM589.5 million, compared to RM582.2 million recorded in the preceding year's corresponding period.

Domestic sales contributed RM308.2 million or 52.3% of the group’s 9MFY2023 revenue while exports contributed the balance RM281.3 million or 47.7%.

On prospects for the current financial year, Scientex Packaging said that amid a challenging external operating environment, the group continues to invest for longer term growth and innovations to develop customer-centric products.

“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,” the group said.

It added the socioeconomic conditions in Myanmar continue to pose operational challenges in the foreseeable short and medium term.

“The group will nonetheless continue to manage its operations to minimise adverse effects whilst exploring options pertaining to its Myanmar operations,” it said.

Scientex Packaging shares last traded at RM2.24, valuing the group at RM786.6 million.