KUALA LUMPUR (Dec 6): Scientex Packaging (Ayer Keroh) Bhd net profit increased 25% for the first quarter ended Oct 31, 2022 (1QFY2023), as revenue grew amid higher demand in both domestic and export sales, while lower raw material prices boosted margin. Scientex Packaging is 72%-owned by Scientex Bhd.
Net profit for 1QFY2023 rose to RM12.28 million from RM9.8 million in 1QFY2022, while revenue grew 19% to RM213.92 million from RM180.31 million, the packaging firm's stock exchange filing showed.
Although the group is facing an increasingly volatile external environment, demand for its products remains fairly resilient, as it continues collaborative work with global and local brand owners to meet their sustainability goals, said Scientex Packaging.
"With priority focused on innovation and development of sustainable products, the group has successfully commercialised more sustainable flexible plastic packaging (FPP) products that meet the customers' stringent packaging requirements but yet are recyclable," it said.
As part of its longer-term objective, Scientex Packaging said it 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 FPP products for the local and global markets.
The group also said that its expansion plan remains on track, and that it is expected to be well positioned to better serve its customers, with greater resources being allocated to develop innovative and customised products in meeting evolving market trends and packaging requirements.
"The group will continue to monitor operational challenges caused by the ongoing geopolitical tension in Ukraine, global supply chain challenges, as well as rising inflationary pressures and to this end, the group has been pro-active with both its engagement with customers and suppliers to manage and mitigate issues to reduce its operational impact," it said.
Barring any unforeseen circumstances, Scientex Packaging said it is relatively optimistic that it will be in a position to meet customers' expectations and sustain its performance for the new financial year.
Shares of Scientex Packaging closed three sen or 1.3% higher at RM2.34 per share on Tuesday, giving the group a market capitalisation of RM821.74 million.
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