Scientex Packaging 4Q net profit plunges 98% on higher goodwill impairment, declares 2.5 sen final dividend

KUALA LUMPUR (Sept 19): Scientex Packaging (Ayer Keroh) Bhd, formerly known as Daibochi Bhd, saw its net profit slump 98.7% to RM149,000 in the fourth quarter ended July 31, 2023 (4QFY2023) from RM11.4 million a year earlier, due to higher goodwill impairment of RM22.71 million for its operations in Myanmar.

Quarterly revenue for the period fell 3.4% to RM185.32 million compared to RM191.84 million a year ago, due to lower demand from its export market, the plastic packaging producer said in a filing to the bourse on Tuesday.

The domestic market contributed RM99.50 million or 53.7% of group revenue, with exports markets at RM85.82 million or 46.3% of total revenue.

The company declared a single tier final dividend of 2.5 sen per ordinary share, to be paid on Jan 22, 2024.

For the financial year ended July 31, 2023 (FY2023), the group’s revenue increased marginally to RM774.78 million, compared to RM774.05 million recorded in the preceding financial year. Domestic sales contributed RM407.66 million or 52.6%, while exports contributed the balance RM367.12 million or 47.4% of its revenue.

It reported a decline of 16.7% in full year net profit of RM35.94 million, against RM43.15 million posted in FY2022.

The group expects current market conditions to remain soft in the near term as it continues to see volatility in the financial and economic environment due to the ongoing geopolitical uncertainties, coupled with impact from rising inflationary pressures translating into rising operational costs.

“While the group expects the current market conditions to continue in the near-term, the group remains focused on its long-term growth strategy and is optimistic that it will be able to sustain its performance for the coming financial year,” Scientex said.

Scientex’s shares traded unchanged at RM2.22, valuing the group at RM779.60 million.