KUALA LUMPUR (Dec 13): Scientex Packaging (Ayer Keroh) Bhd’s net profit shrank by 37.2% to RM7.71 million in the first financial quarter ended Oct 31, 2023 (1QFY2024) from RM12.28 million a year ago due to lower revenue and higher electricity costs.

The group’s quarterly revenue declined by 19% to RM172.97 million from RM213.92 million because of lower export sales.

Its earnings per share dropped to 2.2 sen from 3.5 sen, according to its filing with Bursa Malaysia.

On a quarterly basis, the group’s net profit came in higher than the RM149,000 registered in the immediate preceding quarter (4QFY2023). However, its revenue was lower against RM185.32 million in 4QFY2023.

Scientex Packaging said the ongoing political uncertainties, rising inflationary pressures as well as soft market sentiments continue to weigh on its operational costs and market demand.

“The group continues on its actions to address operational efficiency, with a focus on waste reduction, machine and labour optimisation. Our investment in technology and innovation has enabled us to make good progress in our development of customer-centric packaging products, meeting their requirements on functional performance and sustainability.

“Our commitment towards sustainable packaging remains unwavered with our increasing portfolio of fully recyclable packaging solutions as well as packaging solutions which incorporate post-consumer recycled resin content.

“The socioeconomic conditions in Myanmar remain challenging in the foreseeable short and medium term. The group will nonetheless continue to observe the conditions and changes within the locality in order to manage its operations to minimise adverse effects whilst exploring options pertaining to its Myanmar operations,” it said.

The group added that it will continue to improve its competitive edge and keep to its long-term growth strategy, and is optimistic that it will be able to sustain its performance in the current financial year.

At the time of writing, shares in Scientex Packaging traded unchanged at RM2.25, giving it a market capitalisation of RM758.53 million.