Scientex Packaging’s 1Q net profit up 25%

SCIENTEX Packaging (Ayer Keroh) Bhd saw its net profit increase by 25.26% for the first quarter ended Oct 31, 2022 (1Q23), while revenue was up 18.6% to RM213.92 million on better product mix and higher demand in both domestic and export sales.

In a filing with Bursa Malaysia, it said earnings per share in 1Q23 was 3.5 sen compared to 2.99 sen in 1Q22.

The group said operating profit for the quarter surged 83% year-on-year to RM17.45 million on the increase in revenue, improved margin due to lower raw material prices and favourable product mix.

Export sales as a percentage to group revenue rose to 51.2% compared to 47.1% recorded in the preceding year corresponding quarter.

Scientex Packaging said its expansion plans remain on track and the company is optimistic it would be able to sustain its performance for the coming financial year.

The plastic packaging manufacturer said greater resources were being allocated to develop innovative and value-added customised products to meet evolving market trends and packaging requirements.

“As part of its longer-term objective, the group is continuously working to embed sustainable practices and processes in its manufacturing process that supports the greater circular economy as the group seeks to establish and enhance its position as a producer of quality sustainable flexible plastic packaging products for the local and global markets,” it said.

With regards to the operational challenges caused by the ongoing geopolitical tension in Ukraine, global supply chain challenges and rising inflationary pressures, the group said it is pro-active with its engagement with customer and suppliers to manage and mitigate the issues.

However, it acknowledged that there has been no substantial change in the socioeconomic conditions in Myanmar, and expects the situation there to remain challenging over the short- and medium-term. — TMR / pic source: scientex.com.my