Scientex Packaging bracing for hit from Myanmar operations

by JAY SHEILA / pic source:

SCIENTEX Packaging (Ayer Keroh) Bhd, posting a healthy set of numbers for its full financial year, is bracing for a hit from its operations in Myanmar.

Save for its Myanmar operations, the flexible plastic packaging (FPP) producer is relatively optimistic that it will be in a position to meet customers’ expectations and sustain its performance for the coming financial year.

“The current socioeconomic conditions in Myanmar remains challenging as the ongoing economic and political uncertainties are expected to weigh in on operations and are likely to affect its financial performance over the near term, notwithstanding encouraging demand for its FPP products,” it said in an exchange filing today.

It said the group will continue to work with its joint venture partner to manage its operations to minimise any adverse effects whilst exploring options pertaining to the Myanmar operations.

Scientex Packaging’s net profit increased 27.7% to RM11.35 million in the fourth quarter ended July 31, 2022, on the back of RM191.84 million in revenue, up 43.5% from the same period last year.

The revenue was boosted by higher average selling prices and higher demand in both domestic and export sales.

In the corresponding quarter of the preceding year, the group said it was impacted by Covid-19 related issues such as temporary plant closures, workforce capacity restrictions, as well as reduced demand from local customers which impacted its overall revenue, production output and efficiency.

For the financial year ended July 31, 2022, the group recorded a revenue of RM774.05 million, up 28.6% from the preceding financial year. In the same period, it posted a net profit of RM43.15 million, down 3.9% from the same period in 2021.

With priority focused on innovation and development, the company has successfully commercialised more sustainable flexible FPP products, that fulfil the twin design of meeting the customers’ stringent packaging requirements and are yet fully recyclable.

Scientex Packaging is 71.9% held by Scientex Bhd.