CEO Morning Brief

Scientex Packaging's 3Q Profit Slips on Higher Tax Expenses, Declares 2.5 Sen Dividend

Publish date: Thu, 20 Jun 2024, 10:11 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (June 19): Packaging solutions provider Scientex Packaging (Ayer Keroh) Bhd's (KL:SCIPACK) net profit slipped by 1.2% to RM10.02 million in the third quarter ended April 30, 2024 (3QFY2024), from RM10.14 million a year earlier, despite higher revenue, primarily due to increased tax expenses.

Earnings per share declined to 2.86 sen from 2.89 sen, as shown in Scientex Packaging's bourse filing. Revenue for the quarter under review rose 3% to RM182.85 million from RM177.49 million in the previous corresponding period, as the group recorded higher sales in its export market.

Scientex Packaging declared a single tier interim dividend of 2.5 sen per share, payable on July 5.

For the cumulative nine-month period (9MFY2024), net profit declined by 28.1% year-on-year (y-o-y) to RM25.74 million from RM35.79 million, due to a decline in revenue and product mix. Revenue contracted by 9.8% y-o-y to RM531.67 million from RM589.46 million, driven by reduced demand in both export and domestic markets.

Amid ongoing global political uncertainties, rising inflationary pressures, and soft market sentiment, Scientex Packaging reaffirmed its commitment to maintaining operational efficiency by optimising machine utilisation, reducing waste, and enhancing workforce productivity.

"We are focused on innovation and developing customer-centric packaging solutions to meet the growing demand for fully recyclable products and sustainability-driven applications in our operations," the group said.

On its Myanmar operations, the group anticipates that the socioeconomic conditions in the country will remain challenging without signs of improvement. It will closely monitor national policies to mitigate operational risks and evaluate options for its Myanmar operations.

Shares of Scientex Packaging were last traded at RM2.03, giving it a market value of RM712.88 million.

Source: TheEdge - 20 Jun 2024

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