Scientex posts net profit of RM114.89mil in 4Q as packaging demand slows

KUALA LUMPUR: Scientex Bhd recorded a weaker bottomline in the final quarter of its 2023 financial year as its packaging business experienced softer market demand across its product segments.

In the quarter ended July 31, 2023, Scientex posted a net profit of RM114.89mil as compared to RM124.98mil a year before, bringing earnings per share to 7.41 sen as compared to 8.06 sen previously.

The group’s revenue was down to RM1.07bil from RM1.11bil in the same quarter in 2022.

The board of directors declared a final dividend of five sen per share, going ex on Jan 2, 2024, and payable on Jan 26, 2024.

According to the group’s filing with Bursa Malaysia, packaging revenue dropped to RM619.7mil from RM740.8mil in the previous corresponding quarter due to the lower demand.

Operating profit fell to RM24.3mil from RM62.6mil, mainly owing to the lower sales and rising operating cost, especially energy cost.

During the quarter, the group also made an impairment of goodwill amounting to RM22.7mil in relation to its Myanmar operations.

In the group’s property business, however, revenue jumped 21.9% year-on-year to RM451.8mil due to higher progress billings from its ongoing projects in Bandar Jasin, Kundang and Tasek Gelugor.

In addition, the robust demand for new launches in Pulai Mutiara 2, Kundang, Rawang and Sungai Petani also contributed to the increase in revenue for the quarter under review.

In tandem with the higher revenue recorded, operating profit increased to RM124.7mil compared to RM116mil recorded in the preceding year corresponding quarter, it said.

For the entire 12-month period, Scientex posted a net profit of RM438.14mil, an improvement from RM409.87mil in the previous year, while revenue grew to RM4.08bil from RM3.99bil.

Moving forward, the group said it expects the current market conditions in the packaging division to continue for the near-term but remains focused on its long-term growth strategy and is confident of a sustainable performance in the coming financial year.

As for its property arm, the group is optimistic demand for its affordable housing will remain resilient for the coming year.