BUSINESS

SCIENTEX'S NET PROFIT UP 11.2 PCT IN Q1

08/12/2021 03:45 PM

KUALA LUMPUR, Dec 8 -- Scientex Bhd’s net profit grew 11.2 per cent to RM102.87 million in the first quarter ended Oct 31, 2021 (Q1 FY2022) from RM92.53 million in the same period last year, supported by higher operating profit from its property business.

The plastic packaging manufacturer and property developer’s revenue rose 15.7 per cent to RM928.17 million from RM802.26 million previously.

On its packaging business, Scientex said the revenue increased to RM678.1 million in Q1 FY2022 from RM583.8 million Q1 FY2021, contributed by both its industrial and consumer packaging products’ domestic and export markets, but operating profit fell to RM64.7 million from RM68.6 million in Q1 FY2021.

“The decrease was mainly due to lower contribution from the group’s converting business under the consumer packaging segment, which was impacted by higher raw material prices and freight cost, as well as incidental COVID-19 related expenses which led to higher operating cost incurred,” it said in a filing with Bursa Malaysia today.

On its property business, Scientex said the higher revenue, which improved to RM250.1 million from RM218.4 million previously, was contributed by steady progress billings from its development projects and good take-up rate for new launches in Tasek Gelugor (Penang), Pulai (Johor), other ongoing projects, as well as the completion of several phases of development projects in Scientex Rawang, Selangor; and Scientex Durian Tunggal, Melaka.

In tandem with the higher revenue recorded, the segment’s operating profit climbed to RM68.5 million from RM58.2 million previously, it said.

To deliver sustainable growth, chief executive officer Lim Peng Jin said Scientex has been maintaining expansions in capacity and capabilities of both packaging and property divisions to reinforce its market position and leadership.

“We continued our ‘Cross Boundary Development Strategy’ for our property development division by lining up new launches in maiden locations of Jasin, Seremban, Cheras, Sungai Dua, and Sungai Petani in FY2022.

“We are also accelerating our pace with a new target to build 8,000 houses a year by FY2023, up from 6,000 a year, representing our commitment to build more affordable houses for the rakyat on the back of robust demand,” he said in a separate statement.

Lim said the company would continue to strengthen and enhance operational and supply chain efficiencies to deliver sustainable growth, as well as manage ongoing challenges such as volatile raw material prices and rising logistics costs.

-- BERNAMA


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