KUALA LUMPUR (Sept 18): Scientex Packaging (Ayer Keroh) Bhd (KL:SCIPACK) net profit in the full year ended July 31, 2024 (FY2024) fell 9.43% from a year ago, as the group flagged heightened market competition and freight costs to have impacted its latest quarter earnings.

The group also saw lower revenue in the year and in the fourth quarter, owing to changes in product mix, it said in a note accompanying its latest financial results.

Full-year net profit came in at RM32.55 million or 9.28 sen per share, from RM35.94 million or 10.25 sen per share.

However, the group raised dividends to five sen per share for 4QFY2024 from 2.5 sen per share previously, lifting its full-year dividend to 7.5 sen, from five sen per share in FY2023.

Full-year revenue came in at RM713.51 million, down 7.91% from RM774.78 million.

For 4QFY2024, Scientex Packaging's net profit came in at RM6.81 million or 1.94 sen per share, from RM149,000 or 0.04 sen per share in 4QFY2023.

It is noted, however, that its previous year's fourth quarter result was impacted by a RM22.71 million impairment on its Myanmar operations, which it is currently exploring options for.

"Excluding the impact of the goodwill impairment in the preceding year corresponding quarter, the current quarter's operating profit decreased by 34% mainly due to heightened market competition, increase in freight costs and changes in the product mix," it said.

Quarterly revenue slipped 1.88% to RM181.84 million, from RM185.32 million, its filing showed.

"The global market outlook continues to remain challenging due to the ongoing political uncertainties, rising inflationary pressures, upsurge of freight cost due to shipping disruption as well as softer market sentiments," it said.

Efforts to maintain operational efficiencies and competitiveness include developing packaging solutions catering to environmental requirements, as well as solar rooftop installations that will come online in January.

Shares of Scientex Packaging were not traded in the morning session. At its last close of RM1.92, the packaging group had a market capitalisation of RM674.25 million.

Meanwhile, shares of its 71.89%-shareholder Scientex Bhd last traded one sen or 0.25% lower at RM3.99, giving it a market capitalisation of RM6.19 billion.