Global packaging manufacturer and leading property developer Scientex Bhd is enroute to hit record revenue exceeding RM3.7 billion in the current financial year ending 31 July 2022 (FY2022), driven by healthy demand for its packaging and property development businesses.
Underscoring the positive outlook, the Group posted its highest quarterly revenue of RM993.8 million for the third quarter ended 30 April 2022 (3Q22), up 1.7% from RM976.8 million previously.
Of total 3Q22 revenue, packaging contributed 75.4% or RM749.7 million, rising 11.6% year-on-year from RM671.5 million previously on healthy sales of industrial and consumer packaging products. Meanwhile, property development made up 24.6% or RM244.2 million, reducing 20.0% from RM305.3 million previously on deferment of Certificate of Completion & Compliance (CCC) for Southern region projects due to material shortages for power supply infrastructure.
Mr. Lim Peng Jin, CEO, Scientex Berhad said: “While markets remain challenging due to supply chain disruptions and rising inflationary pressures, we have delivered consistent topline growth. This reaffirms our outlook on packaging and affordable property development which are seeing unabated demand.”
“We continue to strengthen the operating and supply chain efficiencies of our packaging segment, to manage rising costs and labour shortages. We are also enhancing our competitive edge internationally by investing in automation and expanding capacity in areas of competitive strengths, to support growth as countries transition to COVID-19 endemicity.”
“For our property segment, we are committed to building more landed affordable homes, and are expanding into two states this year, Negeri Sembilan and Kedah. Meanwhile, we are adapting our operating and pricing strategies to cope with challenges of reduced labour availability and higher material costs.”
Despite the strong revenue performance, higher raw materials prices and freight costs for the consumer packaging business and lower property development contribution resulted in 3Q22 net profit declining to RM88.3 million from RM109.9 million previously.
For the nine-month period ended 30 April 2022 (9M22), Scientex’s revenue climbed 7.0% to RM2.9 billion from RM2.7 billion in the previous year.
Revenue from the packaging segment grew 13.2% to RM2.1 billion revenue in 9M22, from RM1.9 billion previously on higher sales of industrial and consumer packaging in the domestic and export markets. Property development revenue stood at RM753.5 million compared to RM811.5 million a year ago, due to the deferment of CCC and delay in authority approvals for new launches.
