KUALA LUMPUR (March 11): Scientex Packaging (Ayer Keroh) Bhd (formerly known as Daibochi Bhd) saw its net profit in the second quarter ended Jan 31, 2022 (2QFY22) fall 22.57% to RM11.69 million from RM15.1 million in the previous year’s corresponding quarter, due to a rise in raw material and freight costs.
As a result, earnings per share declined to 3.57 sen from 4.61 sen previously, its Bursa Malaysia filing showed on Friday (March 11).
The group’s quarterly revenue, however, surged 20.53% to RM194.47 million from RM161.34 million a year prior, underpinned by higher domestic and export sales.
For the six-month period ended on Jan 31, Scientex Packaging’s net profit dropped 22.93% to RM21.49 million against RM27.89 million registered in the same period last year.
Revenue, on the other hand, rose 17.85% to RM374.78 million from RM318.02 million, driven by higher sales in the domestic and exports market.
On a quarterly basis, the group’s net profit increased 19.29% from RM9.8 million reported in the immediate preceding quarter (1QFY22) while revenue surged 7.85% from RM180.32 million.
Moving forward, Scientex Packaging said, save for its Myanmar operations, the group is cautiously optimistic that the current financial year would remain positive, despite the challenges in the operating environment.
“In relation to its Myanmar operations, the group continues to face increased operational challenges caused by Myanmar’s highly uncertain socio-economic problems due to the ongoing political crisis which, compounded by the Covid-19 pandemic, has severely impacted its operations and financial performance.
“With a poor and highly uncertain economic outlook, unresolved political tensions and ongoing social chaos, the immediate prospects of its current operations remain extremely challenging,” it said.
The group added that it will continue to prioritise the development of sustainable and innovative flexible packaging products through collaboration with brand owners and leveraging resources and processes within the Scientex Group.
Shares in Scientex Packaging were untraded on Friday. Its last done price stood at RM2.32, valuing the group at RM760.77 million.