PETALING JAYA: Packaging manufacturer and property developer Scientex Bhd’s net profit for the fourth quarter (Q4’22) ended July 31, 2022 decreased 12.4% to RM124.98 million from RM142.65 million in the corresponding quarter last year, impacted by rising costs of constructional materials and labour.
Quarterly revenue increased 14.2%, surpassing RM1 billion mark for first time to RM1.11 billion from RM970.36 million last year due to higher revenue recorded in packaging and property segments.
Packaging revenue recorded for the quarter was RM740.8 million compared to RM617.4 million last year contributed from both its industrial and consumer packaging products, driven by increase in demand for its export and local sales as well as the rise in average selling prices.
Property revenue increased 5% to RM370.5 million from RM352.9 million last year. The higher revenue was mainly contributed by progress billings from ongoing projects in Scientex Tasek Gelugor in Penang, Taman Pulai Mutiara 2 in Johor and Scientex Durian Tunggal 2 in Malacca. In addition, the group also saw contributions from its projects in Scientex Seremban in Negri Sembilan and Scientex Jasin in Malacca.
For the full year, the group’s net profit decreased 10.4% to RM409.87 million from RM457.23 million last year due to higher raw material and operating costs of the packaging segment and lower contribution from the property development segment.
Revenue for the year rose 9% to RM3.99 billion from RM3.66 billion last year driven mainly by growth in the packaging segment.
Scientex proposed a final dividend of 5 sen per share for FY22 payable on Jan 9, 2023 subject to shareholders approval at the forthcoming AGM. Together with the 4 sen interim dividend paid on July 22, 2022, the total dividend payout of RM139.6 million represents 34.1% of net profit in FY22.
Scientex CEO Lim Peng Jin said its packaging division is poised to open up new markets aggressively with the completion of its plants expansion.
“Additionally, the strong take up of our properties in various states indicate the steady demand for affordable homes. We are also strengthening our operational resilience and supply chain efficiencies, and note gradual improvements in labour availability for both divisions. We are thus optimistic of achieving stable performance in the financial year ending July 31, 2023,” he added.