KUALA LUMPUR (March 11): Flexible plastic packaging provider Scientex Packaging (Ayer Keroh) Bhd (KL:SCIPACK) posted a 16.61% year-on-year increase in net profit for the second quarter, driven by stronger export sales and an improved sales mix.

For the three months ended Jan 31, 2025 (2QFY2025), net profit rose to RM9.35 million from RM8.02 million in the same period a year earlier, while revenue grew 4.57% to RM183.87 million from RM175.85 million. Earnings per share rose to 2.66 sen from 2.28 sen. No dividend was declared for the quarter under review.

Export sales contributed RM81.62 million or 44.4% of the group’s revenue while the domestic market contributed the balance of RM102.25 million or 55.6% of revenue for 2QFY2025.

For the first half of 2025, the group's net profit fell 22.12% to RM12.25 million from RM15.72 million a year earlier, weighed down by foreign exchange losses. This was despite a 4.11% increase in revenue to RM363.16 million from RM348.82 million.

Scientex Packaging remains cautious amid a challenging global market, focusing on managing operational costs and maintaining competitiveness through optimised machine utilisation, waste reduction, and workforce productivity.

The group, which has a presence in Myanmar via a 60% subsidiary Daibochi Packaging (Myanmar) Co Ltd, said it continues to closely monitor the situation and national policy changes there to mitigate any potential impact on operations while exploring alternative options for its business in the country.

Myanmar's business and political situation has been highly volatile since the military coup against the democratically elected government in February 2021. This year fighting has escalated.

Myanmar's contribution to the group's revenue was small in the financial year 2024. Only 3.8% of the group's total revenue of RM713.51 million.

Shares of Scientex Packaging, which generally see thin trade, were not traded on Tuesday, as at time of writing. It last traded at RM1.55, giving it a market capitalisation of RM543.5 million. Year-to-date, the stock has fallen 18.42%.