KUALA LUMPUR (June 9): Plastic packaging firm Scientex Packaging (Ayer Keroh) Bhd’s (KL:SCIPACK) net profit for the third quarter fell 28% from a year earlier, partly dragged by weaker export sales due to the ringgit’s appreciation. 

Further, Scientex Packaging has decided to cease manufacturing operations in Myanmar, citing a lack of foreseeable improvement amid prolonged operational challenges in the country over the past few years, primarily due to ongoing economic and political instability.

“The group will work towards minimising the operational and financial impact from this cessation,” Scientex Packaging said in an exchange filing.

Scientex Packaging operates in Myanmar through its 60% subsidiary Daibochi Packaging (Myanmar) Co Ltd. In the financial year 2024, Myanmar contributed only 3.8% of the group’s total revenue of RM713.51 million.

For the three months ended April 30, 2025 (3QFY2025), net profit fell to RM7.23 million, or 2.06 sen per share, while revenue fell 5.5% to RM172.87 million.

Despite weaker results, Scientex Packaging maintained its dividend payment at 2.5 sen per share, unchanged from the previous year.

“The group remains focused on prudent cost management and sustaining competitiveness through several operational measures, such as optimised machine utilisation, waste reduction, and enhanced workforce productivity,” Scientex Packaging said.

For its first nine months of the financial year (9MFY2025), net profit was RM19.48 million, a 24% decline when compared to the same period last year, weighed by sales mix, market competition, and foreign exchange losses. Revenue for the period was up 0.8% to RM536.03 million.

Shares of Scientex Packaging, which generally see thin trade, were not traded on Monday. The stock last closed at RM1.50, giving it a market capitalisation of RM526.76 million. Year-to-date, the stock has fallen 21%.