SCGM’s Reported Higher Revenue To RM71.3  Million  in 3Q FY22

Food packaging manufacturer SCGM Bhd reported 14.1% higher revenue to RM71.3 million for the third quarter ended 31 January 2022 (3Q FY22) from RM62.5 million a year ago, as the reopening of various economic sectors pushed demand for thermo-form food and beverage (F&B) packaging in Malaysia and its export countries.

F&B packaging made up 86.6% or RM61.8 million of 3Q FY22 revenue, which grew 18.7% from RM52.0 million a year ago. The balance 13.4% or RM9.5 million of group revenue was contributed by other segments namely face masks, extrusion sheets, and packaging for electronics, medical and other sectors.

Local sales jumped 18.6% year-on-year to RM48.3 million in 3Q FY22 from RM40.7 million in the third quarter ended 31 January 2021 (3Q FY21). Export sales increased 5.5% to RM23.0 million in 3Q FY22 from RM21.8 million in 3Q FY21.

Although the Group had made upward adjustments to selling prices to address higher resin costs since the preceding quarters, the increased prices of resin, additives, chemicals and packaging resulted in profit before tax (PBT) reducing 5.1% to RM7.5 million in 3Q FY22 from RM7.9 million. 3Q FY22 net profit reduced 22.5% to RM6.3 million versus RM8.1 million previously, on higher deferred tax expense.

For the first nine months ended 31 January 2022 (9m FY22), group revenue grew 17.9% to RM213.2 million from RM180.8 million on similar uptake for F&B packaging. Nonetheless, 9m FY22 PBT was largely maintained at RM27.3 million compared to RM27.3 million previously, while net profit declined 13.8% to RM22.4 million from RM26.0 million a year ago on higher input costs and deferred tax expense.

The Group declared the third interim dividend of 1.4 sen per share in respect of FY2022, which will be paid on 28 April 2022, with an ex-date on 12 April 2022. Combined with the earlier paid first and second interim dividends paid in October 2021 and January 2022, the RM9.8 million dividend payout in respect of FY2022 year-to-date represents 44% of 9m FY22 net profit, in tandem with SCGM’s dividend policy of distributing at least 40% of net profits to shareholders.

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