Scientex 4Q profit drops to RM125m due to higher constructional materials, labour costs

by M JAY SHEILA / pic by TMR FILE

SCIENTEX Bhd net profit for the fourth quarter ended July 31, 2022 (4Q22) dropped 12.4% to RM124.98 million despite increased revenue, mainly due to the impact of rising costs of construction materials and labour.

In an exchange filing today, the provider of flexible plastic packaging solutions  and affordable housing said its revenue for the quarter under review was up 14.5% to RM1.11 billion from the same period last year.

Packaging revenue was higher at RM740.8 million compared to RM617.4 million recorded in the preceding year corresponding quarter, contributed by both its industrial and consumer packaging products, driven by increase in demand for its export and local sales as well as the average selling prices.

Property revenue was RM370.5 million, an increase of 5.0% compared to RM352.9 million recorded in the preceding year corresponding quarter, mainly contributed by strong progress billings from ongoing projects in Scientex Tasek Gelugor in Penang, Taman Pulai Mutiara 2 in Johor and Scientex Durian Tunggal 2 in Melaka.

In addition, the group said it also saw contributions from its newly launched projects in Scientex Seremban in Negeri Sembilan and Scientex Jasin in Melaka.

For the full financial year, Scientex posted a net profit of RM409.87 million, down 10.4% from RM457.23 million in FY21. It chalked a revenue of RM3.99 billion, up 9% from RM3.656 billion in the year before.

Adopting a longer-term approach towards growth, the company said it has embarked on its capacity and capability expansion plans at its various plants, with its expansion plans remain generally on track.

It said its new robotic state-of-the-art stretch film plant in Shah Alam is expected to be fully commissioned in the first half of financial year 2023.

Scientex registered a final dividend of five sen per share, payable on Jan 9, 2023.